Origin Energy shares fall as it flags full-year loss for Octopus
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More news: Origin shares fell in early trading after it flagged that its UK renewable energy business Octopus Energy will report a full-year loss.
Origin shares were down 3.71% to $10.64 at 10:55am AEST and over the past 12 months are up 1.92%.
Origin said Octopus Energy was expected to report a full-year loss of up to $100 million, down from its previous guidance of up to a $100 million profit. This was due to unseasonable warm weather and one-off impacts relating to the government’s price guarantee subsidy for the deterioration in Octopus earnings.
Origin Energy lifts FY guidance for energy markets business
The news: Australia’s top energy retailer and gas producer Origin Energy has narrowed full-year earnings guidance for its main energy markets business amid favourable conditions.
The numbers: The company now expects underlying earnings at the energy markets business to be in the range of $1.3 billion to $1.4 billion, up from its previous estimate of $1.1 billion to $1.4 billion.
However, its UK renewable energy business Octopus Energy is now expected to report a full-year loss of 0 to $100 million, down from the previous guidance of up to $100 million profit.
The context: Origin said the upward revision in the energy markets business was due to operational improvements and wholesale portfolio benefits, with strong electricity volumes and generation performance, lower green certificate costs.
It blamed unseasonably warm weather in the UK in April and May as well as one-off impacts relating to the government’s price guarantee subsidy for the deterioration in Octopus earnings.
The source: ASX
