News: ORG Origin Energy Says Expected FY2020 Origin Capital Expenditure 5-10% Lower Than Guidance

April 6 (Reuters) - Origin Energy Ltd (ORG) :

• ORIGIN WILL NOT DISCONNECT ANY RESIDENTIAL OR SMALL BUSINESS CUSTOMERS IN FINANCIAL STRESS
• TO DATE THERE HAS BEEN NO MATERIAL IMPACT ON ORIGIN'S ENERGY SUPPLY OPERATIONS
• THERE WILL ALSO BE NO DEFAULT LISTING FOR CUSTOMER HAVING TROUBLE PAYING AND ALL LATE PAYMENT FEES HAVE BEEN PAUSED OVER SAME PERIOD
• IMPACTS HAVE NOT BEEN MATERIAL TO DATE AND CAN BE ABSORBED WITHIN EXISTING FY2020 GUIDANCE RANGE
• ENERGY MARKETS FY2020 UNDERLYING EBITDA GUIDANCE OF $1.4 - $1.5 BILLION IS MAINTAINED
• EXPECTED FY2020 ORIGIN CAPITAL EXPENDITURE IS 5-10 PER CENT LOWER THAN GUIDANCE
• EXPECTED FY2020 CASH DISTRIBUTIONS FROM APLNG UNCHANGED AT $1.1 - $1.3 BILLION
• PURSUING A RANGE OF FY2021 COST REDUCTION INITIATIVES INCLUDING $300 - 400 MILLION REDUCTION IN APLNG UPSTREAM CAPEX
• FY2020 CAPEX (EXCLUDING AUSTRALIA PACIFIC LNG) ESTIMATED TO BE 5-10% LOWER THAN PREVIOUS GUIDANCE OF $530-$580 MILLION
• FY2021 COST REDUCTION INITIATIVES INCLUDE 25-30 % REDUCTION IN ORIGIN CAPITAL EXPENDITURE
• CONTINUING TO PURSUE A TARGETED $100 MILLION REDUCTION IN RETAIL COST TO SERVE BY FY2021 COMPARED TO FY2018 BASELINE
• CURRENT EXPLORATION PROGRAM IN BEETALOO BASIN TEMPORARILY PAUSED DUE TO COVID-19
• AS AT 31 DEC 2019, ORIGIN HELD LIQUIDITY OF $3.8 BILLION, CONSISTING OF $0.8 BILLION IN CASH
• CO'S BALANCE SHEET AND LIQUIDITY EXPECTED TO FURTHER IMPROVE IN H2 OF FY2020

Source text https://reut.rs/2xMCEsh

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