ORG Share Price History
30 Jul, 2020
(Bloomberg Opinion) -- In folklore, the will-o’-the-wisp is a spirit that lives in marshlands, beckoning night-time travelers with its mysterious light until they stumble in darkness to their demise.The phenomenon is thought to be caused by igniting swamp methane, so it’s oddly appropriate that one of the world’s largest exporters of such fossil gas seems intent on pursuing that industry to its own destruction. An Australian task force on helping the manufacturing industry recover from Covid-19 will recommend subsidies for gas infrastructure and bringing in the government as a guaranteed buyer if commercial customers don’t show sufficient demand, the Sydney Morning Herald and Age newspapers reported Wednesday.That’s an extraordinarily bad idea. Australia’s determination to use taxpayer funds to bring uncommercial gas projects online has helped swell a glut of methane in the seaborne trade over the past decade as operators including Chevron Corp., Santos Ltd., Origin Energy Ltd., Royal Dutch Shell Plc, and Woodside Petroleum Ltd. built plants capable of exporting more than 100 billion cubic meters a year. That oversupply has pushed spot prices for Asian liquefied natural gas as low as $2 per million British thermal units this year, an 80% drop on levels that prevailed a decade ago. Despite its own surging exports, that hasn’t been a win for Australia.While exports of oil and LNG now total around A$60 billion ($43 billion) a year, an immense tax offset granted to builders of export facilities worth nearly a quarter of a trillion dollars has ensured that revenues from petroleum taxes average little more than A$1 billion annually. Qatar, which is still marginally ahead as the world’s biggest LNG exporter, has built an entire economy on petroleum royalties. Australia, on the other hand, makes more than twice as much from beer excise tax.The building of the current crop of export facilities sparked a jobs boom nearly a decade ago, but that dissipated once construction ceased. Employment in oil and gas production now totals about 20,500 people. Bookings agent Flight Centre Travel Group Ltd. has a workforce about the same size as Australia’s entire upstream petroleum industry.To be sure, oil and gas extraction is now a significant sector, accounting for about A$44 billion of gross value added per year. Still, the 2.3% of gross domestic product looks like a poor return on the decades of industrial policy that were needed to develop it.The current push for further subsidies is likely to make a bad problem worse. It’s a priority for a manufacturing task force because the previous gas projects on the populous east coast were designed entirely for export, starving industry of the artificially cheap fuel that some countries (and the remote state of Western Australia) reserve for domestic use.But Australia’s industrial sector is never going to be a powerhouse worthy of such interventions. Labor costs are too high and its location too remote from global supply chains for the country to be a significant player in large-scale complex manufacturing, as demonstrated by the collapse of its car industry over the past decade.Any set-aside gas generated as a result of the proposed policies is most likely to end up used in low-value applications like explosives and fertilizer. Together. these account for just a percentage point or so of goods exports, which don’t include major services exports such as tourism and education. At a time when the European Union and Joe Biden’s presidential campaign are looking at imposing tariffs or quotas on carbon-intensive imports, the idea that gas-fired manufacturing will lead to a renaissance of Australian industry seems delusional.The ultimate problem is that from the perspective of global petroleum companies, Australia’s relatively high costs put its potential projects outside the range of viable investments — and that field is already narrowing, thanks to the recent collapse in oil prices and rise of electrified transport.Only government spending and tax shields are capable of shifting Australian projects far enough down the cost curve to make sense, but that means that they’ll always be marginal and dependent on ongoing support. A typical 30-year gas project starting development in 2020 would face challenges to getting financed in a world that hopes to eliminate carbon emissions by 2050, but plenty of projects still manage. Indeed, the 96 billion cubic meters of new LNG capacity signed off last year was a record.Investors are quite capable of finding the rare fossil fuel projects that are strong enough to make a return in a de-carbonizing world. The trouble is, it’s not seeing them in Australia. Rather than using taxpayer money to put its thumb on those scales, Australia would be better stepping back and letting the market decide.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
16 Jun, 2020
Origin Energy Finance Limited -- Moody's announces completion of a periodic review of ratings of Origin Energy Limited
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Origin Energy Limited and other ratings that are associated with the same analytical unit. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
27 May, 2020
Could Origin Energy Limited (ASX:ORG) be an attractive dividend share to own for the long haul? Investors are often...
07 May, 2020
Lockdowns to slow the coronavirus pandemic are pummelling gas demand in the world's biggest buyers of liquefied natural gas (LNG), pushing Asia's spot prices to record lows and forcing some suppliers to start cutting output. Economies worldwide have ground to a halt as virus containment measures have taken their toll, slashing gas demand for power generation, heating, cooking, vehicles and chemical manufacture. Asia's spot LNG prices dropped to $1.85 per million British thermal units (mmBtu) last week, the lowest ever, as cargoes have flooded the market.
30 Apr, 2020
Origin Energy Finance Limited -- Moody's affirms Origin Energy' Baa2/P-2 ratings; outlook remains stable
Moody's Investors Service has today affirmed Origin Energy Limited's Baa2 long term issuer and senior unsecured debt ratings, and its P-2 short-term issuer rating. Moody's has also affirmed Origin Energy Finance Limited's Baa2 backed senior unsecured rating and its (P)Baa2 backed senior unsecured MTN program rating.
29 Apr, 2020
Electricity and gas retailer Origin Energy Ltd said on Thursday revenue from its stake in the Australia Pacific LNG (APLNG) joint venture fell 17.7% in the third quarter, hurt by lower contracted LNG sales. Origin, which controls a third of Australia's energy retailing market, said its share of APLNG revenue came in at A$628.5 million for the quarter ended March 31, down from A$763.9 million a year earlier. The figure was slightly below a RBC Capital Markets estimate of A$692 million.
21 Apr, 2020
In this article we are going to estimate the intrinsic value of Origin Energy Limited (ASX:ORG) by estimating the...
24 Mar, 2020
19 Mar, 2020
To the annoyance of some shareholders, Origin Energy (ASX:ORG) shares are down a considerable 48% in the last month...
10 Mar, 2020
Half Year 2020 Origin Energy Ltd Earnings Presentation
26 Feb, 2020
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Origin...
13 Feb, 2020
S&P Global said on Thursday that China National Offshore Oil Corp's (CNOOC) recent declaration of force majeure on some liquefied natural gas (LNG) imports will not affect its ratings or that of Australian LNG exporters. CNOOC, China's biggest LNG importer, has invoked force majeure to suspend contracts with at least three suppliers, two sources told Reuters on Feb. 6.
27 Jan, 2020
Ideally, your overall portfolio should beat the market average. But even the best stock picker will only win with some...
30 Dec, 2019
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of...
02 Dec, 2019
In 2016 Frank Calabria was appointed CEO of Origin Energy Limited (ASX:ORG). First, this article will compare CEO...
19 Nov, 2019
Energy retailer Origin Energy on Wednesday said it was actively looking to expand its Australian onshore exploration efforts, while signaling higher output for its Australia Pacific LNG project. Origin, which has begun drilling in the Beetaloo Basin in the Northern Territory, said exploration was progressing well and that first results were expected in the fourth quarter of fiscal 2020. The Sydney-based firm increased its fiscal 2020 production guidance from its stake in Australia Pacific LNG to around 690 to 710 petajoules (PJ), compared to its earlier forecast of 680 to 700 (PJ).
08 Nov, 2019
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
22 Oct, 2019
If you want to know who really controls Origin Energy Limited (ASX:ORG), then you'll have to look at the makeup of its...
02 Oct, 2019
Today we'll take a closer look at Origin Energy Limited (ASX:ORG) from a dividend investor's perspective. Owning a...