Coal news and updates

Energy giant Origin has slashed $1.5 billion from the value of its business as the rapid influx of renewables drives down wholesale electricity prices and increasing coal and gas costs pummel the profitability of its generation fleet.

 

Origin, one of the nation’s top power and gas suppliers, issued the writedown warning on Friday along with a further $669 million one-off hit for a deferred tax liability at its Asia Pacific LNG joint venture, which produces natural gas in Queensland.

 

Chief executive Frank Calabria said earnings from the company’s energy division would fall again in 2021-22 as lower-than-expected wholesale electricity prices - combined with higher commodity prices for the coal and gas required to feed its fleet of power stations - continued taking a toll.

 

Mr Calabria said the impact should be “largely offset” by higher earnings from Origin’s liquefied natural gas business as rebounding post-pandemic economic activity around the world supports higher oil and gas prices.

 

“As previously outlined, the energy markets business faces significant headwinds in financial year 2022,” he said. “Fortunately this is expected to be largely offset by higher earnings from integrated gas, demonstrating the benefits of Origin’s diversified business.”

 

 

Source : https://www.smh.com.au/business/companies