Origin Energy Limited · ASX:ORG
Origin Energy — Macquarie Australia Conference 2013
19 slides from Origin Energy's conference presentation, May 3, 2013
Slide 1: Origin Energy – Macquarie Australia Conference
Origin Energy Macquarie Australia Conference, 1-3 May 2013 Grant King, Managing Director “Knowledge Is Power”
Slide 2: Important Notice
Important Notice Each institution that reviews this presentation will be deemed to represent that it is a “qualified institutional buyer” within the meaning of Rule 144A under the U.S. Securities Act of 1933. This presentation does not constitute investment advice, or an inducement or recommendation
Slide 3: An investment in Origin provides a stake in …
An investment in Origin provides a stake in … The largest integrated energy business in Australia and New Zealand • Large and diverse fuel portfolio of physical and contracted fuel supply • Largest and most flexible generation portfolio • Largest retail energy customer base An investment in APLNG’s
Slide 4: Origin is focused on responding to challenges, progressing APLNG and strengthening funding
Origin is focused on responding to challenges in the existing business, progressing the APLNG project and strengthening its funding position Existing Business APLNG Funding Responding to Challenges Confidence in Schedule & Cost Strengthened • Regulation and pricing • Upstream 35% complete, • Continu
Slide 5: Adverse impacts of regulation on energy markets have eventuated
At this conference last year we talked about the potential adverse impacts of regulation on energy markets … … which have eventuated in the form of an unfavourable QCA tariff determination for FY2013 5|
Slide 6: Effective retail energy markets are underpinned by full deregulation
Effective retail energy markets are underpinned by full deregulation, with Federal and State governments committing to this path … • On 7 December 2012, the Council of Australian Governments (COAG) agreed to the recommendations made by the Standing Council on Energy and Resources (SCER): • The need
Slide 7: Retail competition in Australia is strong
Retail competition in Australia is strong as evidenced by churn … • The Finnish based international energy think tank VassaETT has consistently found that Australia has the most competitive energy markets in the world • Victoria has been ranked the most competitive energy market over the past 5 year
Slide 8: South Australia has joined Victoria in deregulating retail energy prices
South Australia has joined Victoria in deregulating retail energy prices … • The Victorian market has been fully • The South Australian regulator (ESCOSA) deregulated since 1 January 2009 deregulated electricity and gas prices • The most competitive energy market in the from 1 February 2013 world •
Slide 9: Wholesale energy costs expected to be higher this year
Wholesale energy costs are expected to be higher this year than in previous years … 90 A combination of Reduced generation weather, 90 80 availability demand and 80 70 plant availability Average NEM Pool Price ($/MWh) Average NEM Pool Price ($/MWh) 70 60 Higher average pool 60 50 prices across the N
Slide 10: The impact of the LNG export channel is now evidenced in the domestic market
The impact of the LNG export channel is now evidenced in the domestic market … Expanding Industry Full Potential gas margins APLNG and begins LNG production Development in Energy GLNG start up production from APLNG Options Markets • Benefits of • Revenue from • Train 1 revenue • Revenue from • Halla
Slide 11: APLNG continues to make good progress towards first gas in mid 2015
APLNG continues to make good progress towards delivering first gas in mid 2015 … Water Treatment Facility, Trenching, Condabri – March 2013 Curtis Island site, March 2013 LNG Tank, March 2013 Condabri – March 2013 UPSTREAM PROJECT DOWNSTREAM PROJECT 35% Complete 37% Complete At 31 March 2013 At 31 M
Slide 12: Origin continues to manage the maturity of its existing debt
Origin continues to manage the maturity of its existing debt facilities, increasing its undrawn committed debt facilities and cash to $6.21 billion at April 2013 Loan & Bank Guarantees - Undrawn 2,500 Loans & Bank Guarantees - Drawn Hybrids, USPP, 144A & medium term notes • Pricing of €900 million 2
Slide 13: Energy production and consumption is a highly topical subject
The production and consumption of energy continues to be a highly topical and much debated subject by consumers and in the community … RETAIL PRICING • 72% of Australians say they are knowledgeable about electricity and gas, and 12% consider themselves very knowledgeable1 However... • Only 14% can c
Slide 14: Traditional ways of communicating are not addressing the disconnection
Traditional ways of communicating with consumers and the community are not addressing the disconnection from the facts … There is a lot of misinformation across the industry There is little ability to challenge much of the misinformation that exists to appropriately inform the debate • 93% of Au
Slide 15: The 'Benefits are Clear' and Darren Lockyer campaign has been effective
The ‘Benefits are Clear’ and Darren Lockyer Campaign activity has been effective • Brand tracking from February 2013 showed favourability towards CSG in SE QLD (32%) is at its highest level • An uplift of 267% APLNG website traffic was achieved • From 6 February to 17 March APLNG achieved 32,168 uni
Slide 16: Darren Lockyer video – CSG and Fraccing
Darren Lockyer video – CSG and Fraccing 16 |
Slide 17: The role of a market leader is to ensure consumers are well informed
The role of a market leader is to ensure that consumers and the community are well informed Origin has today launched a new digital platform, Energy Explorer, aiming to make accessible factual information on a variety of energy related topics 17 |
Slide 18: Energy Explorer establishes new channels for energy facts
Energy Explorer establishes new channels for Origin to provide energy facts, and product & service information to consumers … Access to Factual Information • originenergy.com.au/energyexplorer • knowledgeispower.com.au Consumer Needs • Google searches • Provides products and service information • En
Slide 19: Thank you
Thank you Further Information Kylie Springall Group Manager, Investor Relations Email: kylie.springall@originenergy.com.au Office: +61 2 8345 5288 Mobile: + 61 400 477 393 Website www.originenergy.com.au 19 |