Australia’s Origin Energy reported a $2.2 billion loss for its full year 2017, driven by write-downs totalling $3.1 billion.
Revenue for the full year 2017 increased 16 percent from $12.1 billion in 2016 to $14.1 billion in the year currently under review.
The company’s underlying earnings before interest, tax, depreciation and amortization (EBITDA) rose 49 percent to $2.5 billion from $1.7 billion reported in FY2016.
Production increased by 40 percent due to the ramp up of operations at Australia Pacific LNG and the commencement of production at Halladale/Speculant in the Otway Basin.
Australia Pacific LNG production increased by 46 percent as Train 2 came online, and the operational phase of a 90-day two train Lenders’ Test was completed.
Speaking of the company’s results, Origin CEO Frank Calabria, said, that despite the impairments impact the company reduced its debt by $1 billion.
Origin chairman Gordon Cairns added the company decided not to pay a dividend for the second half of 2017, as it focuses on reducing debt.
Calabria said, “In the year ahead, we will continue to focus on meeting the challenges of energy affordability and security, while improving our operational efficiency and reducing debt so we can improve returns to shareholders.”
Origin expects its Underlying EBITDA for the next year to increase 14 to 21 percent on FY2017.
The company further expects to reduce its debt below $7 billion by the end of FY2018 with the expected divestment of Lattice Energy.