Origin Energy Limited (ORG)

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General Information
Company Name: Origin Energy Limited
Stock Code: ORG
Website: www.originenergy.com.au
GICS Sub-Industry: Integrated Oil & Gas
Market Cap ($M): 15,798
Equiv. Shares (M): 1,106

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 14.330 $ 14.320 $ 14.430 $ 14.260 $ 14.280 1,252,377 $ 0.050  0.350 %

Current Broker Consensus Recommendation more
Recommendation: Buy (1.6667)
Recommendation Date: 17th Oct 2014
Brokers Surveyed: 3

Company Overview

Business Description:
Origin Energy (ORG) is an integrated energy company focused on gas and oil exploration and production, power generation and energy retailing in Australia. Its key operating segments include oil & gas exploration and production, LNG operation, energy retailing and power generations. It also conducts the business in New Zealand through a 53.1% investment in Contact Energy.

Strategy Analysis:
ORG looks towards a sustainable approach to developing the growth of the business. The focus is on maintaining its position as a leading Australasian integrated energy company that participates in most segments of the supply chain. The company seeks to deliver market leading performance for shareholders by identifying, developing and operating businesses which deliver value to customers. It also focuses on developing and procuring competitive sources of energy and related products and services to better meet customer energy needs. Origin Energy reported NPAT down 34% to $524.0m for the half year ended 31 December 2012. The key factors contributing to the decrease in statutory profit include: lower underlying profit; a lower net gain on items related to Australia Pacific LNG; and a net decrease in the fair value of financial instruments during the half year while a net increase was recorded in the prior half year. Revenues from ordinary activities were $7.38bn, up 14% from last year. Diluted EPS was 47.9 cents compared to 73.7 cents last year. Net operating cash flow was $790.0m compared to $758.0m last year. The interim dividend declared was 25 cents, in line with 25 cents last year. The company expects the regulatory and market competitive pressures that have affected the half year result in Energy Markets to continue into the second half of the 2013 financial year.

Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 1,257.1 114.2 65.3 12.6 70.0 4.9 100.0
2015  F 760.4 69.1 6.6 20.8 50.0 3.5 100.0
2014  A 713.0 64.8 -6.4 21.6 50.0 3.6 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
ERM Power (EPW) $389 M 2.4769 -0.8413 0.0273 1.9978 12.5877 12.2534 7.43 7.74 8.36
Origin Energy (ORG) $15,787 M -0.0702 0.0910 0.6031 22.1928 20.3421 12.6890 3.50 3.50 4.91

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ORG 1.07 21.6 1.17 0.67 1.09
Market 0.89 15.1 1.22 1.70 1.49
Sector 1.12 12.1 0.85 0.67 4.64

Name Position Start Date
Ms Karen Anne Moses Executive Director 25 March 2009
Mr Grant Alfred King Managing Director 18 February 2000
Mr John Howard Akehurst Non-Executive Director 29 April 2009
Mr Ralph James Norris Non-Executive Director 18 April 2012
Dr Helen Marion Nugent Non-Executive Director 25 March 2003
Mr Bruce Gerard Beeren Non-Executive Director 13 March 2000
Ms Maxine Nicole Brenner Non-Executive Director 15 November 2013
Mr Bruce Morgan Non-Executive Director 16 November 2012
Mr Gordon McK Cairns Non-Executive Director,Non-Executive Chairman 01 June 2007

Name Position
Dennis Barnes Chief Executive Officer Contact Energy
Frank Calabria Chief Executive Officer Energy Markets
David Baldwin Chief Executive Officer LNG
Paul Zealand Chief Executive Officer Upstream
Andrew Clarke Company Secretary
Helen Hardy Company Secretary
Phil Craig Executive General Manager Corporate Affairs
Carl McCamish Executive General Manager People and Culture

Calendar of Events
Date Event
16 September 2015 Report (Annual)
20 August 2015 Report (Prelim)
30 July 2015 Report (Quarterly)
29 April 2015 Report (Quarterly)
03 April 2015 Report (Interim)
19 February 2015 Report (Interim)
17 February 2015 Report (Interim)
30 January 2015 Report (Quarterly)
22 October 2014 AGM
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.


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