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ORG - Origin Energy

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DB008 said:
Hello Tesla and Solar Power....bye bye energy stocks....
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Very interesting that you brought up Tesla and Solar Power. The uptake of these are in fact be driven by higher oil prices.... there is less incentive to switch when the oil price is low (all else being equal).
 
skc said:
Why on earth did they not raise capital at the half year report? The share price was ~$9-10 at the time. They should have suspended the dividend and raise at say $7 (30% discount). $2.5B would have cost them half the dilution.
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Totally agree with this. They have been cum issue for about 2 years now (since the various LNG projects started suffering cost blow outs across the sector). For all that the executive team are considered top notch, this stinks of poor management sticking their heads in the sand.

Meanwhile, fantastic outcome for Macquarie. Sole underwriter with a fee take of ~$45m on the deal.
 
Does anyone know when I should expect to see the entitlements taken up to show up?
 
Had a lookee but no see!! I have emailed Boardroom to find out what has happened to my shares so should know in a few days.
 
What's not to see?
As per the link: Issue of New Shares under Retail Entitlement Offer is today, 4th Nov. Normal settlement trading of said shares starts tomorrow.
 
See Origin cracked resistance yesty. $5.50 ish was an out price for the short termers but rising energy prices has encouraged higher ORG prices. Looks too juicy to be true.

 
is this right , shares are at 9.64 today but origin has NOT paid a dividend in two years?
Thats what my OLbrokers info is telling me
 
Origin Energy struggling to break through $10. A retrace is likely if it continues to fail. Support at $9.25.

 
Endured a drawdown after purchasing at 4.79 before it bottomed.
It would seem the bottom is in for now though... full steam ahead in upward trend. Not bad for a big boat.

 
barney said:
Any thoughts on why ORG has been lagging the likes of Woodside and Beach
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Origin is a more complex business:

Produces natural gas.

Produces LNG from its own gas or gas purchased from others.

Operates the largest power station of any kind in Australia, that being Eraring in NSW (coal).

Operates a number of smaller gas-fired power stations in various states and also operates the Shoalhaven pumped hydro scheme in NSW. Also owns or has under contract wind and solar generation.

Is a solar sales company that sells solar power systems to households. The physical electrical work on site is sub-contracted however.

Is a major retailer of natural gas and electricity, noting that part of what they sell is sourced from others including those with rival retail businesses.

To many Australians is a company primarily associated with LPG and in some regions is effectively a monopoly supplier in practice.

A rise in oil prices is potentially good for their LNG export business but for the rest it's neutral and in some cases negative.
 
Forgot to include that Origin also owns the Mt Stuart power station in Queensland, capacity 423 MW, the fuel for which is kerosene.
 
.... investors took a stick to Origin’s shares last Thursday, adding to the losses over the past year.

The shares fell 6.8% to $4.64 but were down more than 7% at one stage.

Up to Thursday the shares were down 37% in the year to this week and Thursday’s slide took that to 44% as investors continue to sour on its LNG businesses and worry about falling electricity prices and the impact of that on Origin’s finances.

Despite the absence of any news of asset write downs, the impact of falling electricity prices was there for all to see.

Origin told the ASX that it now expects 2020-21 electricity gross profit to be down $250–290 million year-over-year. The previous guidance predicted a $170–220 million fall.

The company blamed this loss to lower wholesale prices, payment of a non-recoverable $40 million increase in network costs and the impact of mild summer conditions.

The company also said its natural gas gross profit is also expected to be down $200–250 million year-over-year. This has been raised from the original $100–150 million estimate.

Origin advised that the decline of the natural gas gross profit was influenced by lower sales and the roll off of legacy sales contracts that totalled $70 million.

The company believes that improved LPG and community energy services will partially offset electricity and gas gross profit losses.

In addition to the lowered guidance, the company said the current business environment was still being impacted by COVID disruptions to demand and weather patterns brought by La Niña.

These presently challenging operating conditions of energy markets to persist inti 2021-22.

Origin downgraded its underlying earnings (including electricity and gas) to the $1–1.14 billion range. Its initial guidance estimated between $1.15–1.3 billion.
 
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