Friday, February 24

Future debt fears for Origin

CONCERNS have been raised about Origin's future debt levels as it seeks to fund its share of the $20 billion Australia Pacific LNG project.   
The energy company also revealed yesterday it may be months before a Chinese partner gets approval to lift its stake in the gas plant and provide Origin with cash.

The Queensland project is part owned by Origin, US energy company ConocoPhillips and China's Sinopec, which has a 15 per cent stake it wants to increase to 25 per cent.

The proposed four-plant project to convert coal seam gas to liquid natural gas is expected to go online in mid-2015.

Analysts have estimated that even if it doesn't expand beyond one conversion plant, known as a train, the project could produce export revenue of $80 billion over 20 years.

Origin reported a "solid" interim net profit yesterday of $794 million with revenue from recently purchased NSW energy assets driving the turn around from a $136 million loss for the same 2010 period.

But Moody's rating agency warned it would consider a downgrade from Baa1 -- if it failed to deliver the LNG project on time and on budget.


Herald Sun

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