There’s a simple message contained in the decision by Origin Energy to withdraw guidance for the 2022-23 financial year because of
Higher gas sale prices are offsetting rising costs in the gas business, including the cost of energy required to process gas. And higher domestic gas prices are also a tailwind as Origin holds a large fixed-price gas portfolio for the 2022-23 financial year.But it’s a very different story on the other side of Origin’s business, known as the energy market division. Here, underlying EBITDA is set to come in between $310 million and $460 million.
With contracted coal deliveries undershooting, Eraring has been forced to try to buy coal at prices that have been sentAnd even when Origin can buy coal, problems with shipping it by rail are placing further handbrakes on Eraring’s output.. The hit to profit is sizeable and could get bigger as Origin’s June 30 balance date approaches.
Origin shares, which had surged 27 per cent before Wednesday’s announcement, plunged 13 per cent in early trade.
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Source: FinancialReview - 🏆 2. / 90 Read more »
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