Origin Energy Limited · ASX:ORG
Origin Energy — Non-Deal Roadshow (March 2014)
35 slides from Origin Energy's roadshow presentation, Mar 3, 2014
Slide 1: ASX fax cover: ORG US Roadshow
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 3 March 2014 From Helen Hardy Pages 35 Subject ORG US Roadshow Please find attached a release on the above subject. Regards Helen Hardy Company Secretary 02 8345 5023 – helen.hardy@originenergy.com.
Slide 2: Origin Energy US Roadshow
For personal use only Origin Energy US Roadshow Karen Moses,, Executive Director,, Finance and Strategy gy March 2014
Slide 3: Important Notice
Important Notice For personal use only Forward looking statements This presentation contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. Such statements are not statements of fact and there can be no certa
Slide 4: Leading integrated energy markets business in Australia and New Zealand
Since Origin was established in 2000 it has pursued a strategy of connecting resources to markets. Over that time it has become … For personal use only The leading integrated energy markets business in Australia and New Zealand At a glance: ¾ Flexible and diverse fuel portfolio ¾ Listed in S&P/ASX 2
Slide 5: Decade of consolidation; Energy Markets business now maturing
Through a decade of consolidation Origin invested in the Energy Markets business, which is now maturing For personal use only Integrated energy markets business Significant position in natural gas and LNG CONTACT ENERGY EXPLORATION & ENERGY MARKETS LNG (NEW ZEALAND) PRODUCTION Australia’s leading en
Slide 6: Progress on four key priorities
As the focus of investment changes, Origin is making significant progress on its four key priorities … For personal use only Improving the Performance of the Existing Businesses 9 Retail Transformation complete, 9 Expansion of gas margins 9 Increased availability and g operational delivering p and c
Slide 7: Maturing energy market, increased competition and discounts
Australia’s maturing energy market has seen increased competition and discounts which will impact Origin Origin’ss margin recovery in the short term … For personal use only Improving p g operational Industry begins LNG APLNG and d GLNG Full F ll production d ti performance of production start up fro
Slide 8: Integrated Energy Business
For personal use only Integrated Energy Business
Slide 9: Australia's leading provider of energy products
Origin’s integrated Energy Markets business continues to be Australia’ss leading provider of energy products Australia For personal use only Fuel Generator Retailer Flexible and diverse fuel Flexible generation Leading retail portfolio portfolio customer t b base • Strong domestic gas supply • 6,010
Slide 10: Contact Energy, 53.1% owned by Origin
Contact Energy, one of New Zealand’s leading integrated energy companies, is 53.1% owned by Origin For personal use only Fuel Generator Retailer Flexible and diverse fuel Flexible generation Leading retail customer portfolio portfolio base in NZ • Hydro and geothermal • 2,218 MW • 438,000 Electricit
Slide 11: Energy markets maturing after decade of consolidation
Energy markets are maturing following a decade of consolidation and integration, coinciding with a period of falling demand, increased competition titi andd compression i off margins i For personal use only 20.0% Maturing 220 Consolidation and integration market • As the energy markets came out of 1
Slide 12: Declining electricity demand from solar PV and efficiency
Origin’s Energy Markets business has been impacted by declining demand for electricity, largely driven by solar PV and energy efficiency measures For personal use only NEM Energy Demand Projections Annual Change in Solar PV Output (GWh) (MWh) GWh 300,000 11.0 Residential & commercial cconsumption An
Slide 13: Reduced discounts in NSW, competition remains in VIC
Origin has reduced discounts in NSW, supported by a decrease in churn, while intense competition remains in VIC For personal use only Origin’s Average Signed Discount Offers for Electricity and Natural Gas Churn Rates Electricity and Natural Gas (%) 40% 14% Origin, H1 FY2013 Origin, H1 FY2014 35% Ma
Slide 14: Price deregulation in NSW and QLD under consideration
The removal of price controls as a result of deregulation in NSW and QLD is currently being considered For personal use only Retail Price Deregulation Timeline SA VIC NSW QLD Recommended by Gas 1 Feb 2013 1 Jan 2009 1 July 2007 AEMC Under Under review, review consideration, potential to Electricity
Slide 15: Retail investment nearing completion on new SAP system
Significant investment in improved retail capability is nearing completion with all customers now serviced on the new SAP system … For personal use only T Transition iti off customers t to t the th new SAP system t ¾ Migration of all customers now complete, a year ahead of schedule Stabilisation of
Slide 16: Diverse fuel and generation portfolio
Origin’s diverse fuel and generation portfolio enables effective management g of gas g and electricityy p purchase costs … For personal use only Fuel Flexibility Generation Flexibility 9,000 PJe/a 350 8,000 Gas / Sales Gas / Generation 7,000 Contract or 300 Coal / Generation Spot Market Capacity (MW
Slide 17: Low historical priced gas position benefits from rising prices
Scale and diversity of Origin’s low historical priced gas position enables Origin g to benefit from rising g gas g prices p … For personal use only Sources of Energy Markets’ East Coast Australian domestic gas prices are PJ/a Gas Portfolio moving towards export parity 300 Ironbark ((new equity q yg
Slide 18: Equity gas position in Australia and New Zealand
Origin’s equity gas position in Australia and New Zealand contributes to its diverse fuel portfolio p For personal use only Origin’s Annual Gas and Liquids Production (excl. APLNG) PJe mmboe b 100 17.2 80 13 7 13.7 Processing plant in Cooper Basin 60 10.3 40 6.9 Kupe processing plant 20 3.4 0 0.0 0
Slide 19: Exploration and development opportunities
Origin is pursuing a number of exploration and development opportunities to support domestic energy markets and LNG export opportunities t iti For personal use only Play types – Shale Play types – CSG, Conventional Ironbark (CSG) Progress towards a development and investment decision continues APLNG
Slide 20: Australia Pacific LNG
For personal use only Australia Pacific LNG
Slide 21: APLNG: strong and aligned joint venture
APLNG is a strong and aligned incorporated joint venture, combiningg Origin’s g Australian CSG experience p with ConocoPhillips’ p extensive LNG and CSG capabilities … For personal use only • Australia’s largest integrated • Global independent exploration and • Integrated energy and chemical energy
Slide 22: APLNG's industry leading reserves base
APLNG’s industry leading Proved and Probable reserves base includes prime acreage in both known and industry accepted “sweet spots” in Queensland … For personal use only Curtis Island APLNG APLNG Reserves (100%) PJ QCLNG (BG) 20,000 GLNG (SANTOS) 15,000 Location of the three LNG projects on Curtis I
Slide 23: APLNG on track for first LNG by mid-2015
APLNG is on track to deliver first LNG by mid-2015, creating a step change in Origin’s Origin s earnings and cash flows For personal use only Milestones Timing (FY) 9 Origin and ConocoPhillips form APLNG incorporated JV Q2 2009 9 Environmental approvals Q3 2011 9 Sinopec – 4.3 mtpa foundation custom
Slide 24: Upstream Project Progress – Condabri
Upstream Project Progress – Condabri Central, North and South For personal use only Condabri Central - Gas Processing Facility Condabri Central - water and brine ponds Condabri North - Gas Processing Facility Condabri South - Gas Processing Facility 23 |
Slide 25: Upstream Project Progress – Talinga, Orana, Reedy Creek, Eurombah Creek
Upstream Project Progress – Talinga, Orana, Reedy Creek and Eurombah Creek For personal use only Talinga – Pipeline Compression Facility, Gas Processing Orana – Gas Processing Facility Facility in background Reedy Creek – Gas and Water Processing Facilities Eurombah Creek – Gas Processing Facility 2
Slide 26: Downstream Project – Curtis Island
Downstream Project – Curtis Island For personal use only Curtis Island February 2013 Curtis Island December 2013 25 |
Slide 27: Funding
For personal use only Funding
Slide 28: $6.51 billion committed undrawn debt facilities and cash
As a result of a number of funding initiatives during the period, Origin has $6.51 billion of committed undrawn debt facilities and cash as at 31 December 2013 … For personal use only Origin Debt & Bank Guarantee Maturity Profile as at 31 December 20132 Over the last 6 months, Origin undertook 4,500
Slide 29: Growth Opportunities
For personal use only Growth Opportunities
Slide 30: Growing position in renewable energy
Origin is focused on growing its position in renewable energy to complement its position in natural gas … For personal use only Chile • 40% interest in Energia Ne Zealand New Andina Andina, a Chilean geothermal exploration company. • Tauhara consented for a Australia Exploration drilling and 250 MW
Slide 31: Maturing energy market, margin recovery in short term
Australia’s maturing energy market has seen increased competition and discounts which will impact Origin Origin’ss margin recovery in the short term … For personal use only Improving p g operational Industry begins LNG APLNG and d GLNG Full F ll production d ti performance of production start up fro
Slide 32: Appendix
For personal use only Appendix
Slide 33: 2014 Half Year Financial Highlights
2014 Half Year Financial Highlights For personal use only ($ million) Dec 13 Dec 12 Change Statutory Profit 322 524 (39%) Statutory EPS 29.3 cps 48.0 cps (39%) Revenue 7,238 7,450 (3%) Underlying EBITDA 1,082 1,055 3% Underlying EBIT 694 698 (1%) Underlying Profit 381 362 5% Underlying EPS 34.6 cps
Slide 34: 2013 Full Year Financial Highlights
2013 Full Year Financial Highlights For personal use only ($ million) June 13 June 12 Change Statutory Profit 378 980 (61%) Statutory EPS 34.6 cps 90.6 cps (62%) Revenue 14,619 12,935 13% Underlying EBITDA 2,181 2,257 (3%) Underlying EBIT 1,438 1,598 (10%) Underlying Profit 760 893 (15%) Underlying
Slide 35: Thank you
For personal use only Thank h k you For more information Chau Le Group Manager, Manager Investor Relations Email: chau.le@originenergy.com.au Office: +61 2 9375 5816 Mobile: + 61 467 799 642 www.originenergy.com.au