Origin Energy trading update results in the share price falling circa 12%
snippet: In Energy Markets, ongoing challenges with coal supply have been impacting Eraring PowerStation throughout FY2022.
However, the situation has deteriorated significantly in recentweeks, with material under-delivery of contracted coal compared to expectations, and withCentennial Coal notifying Origin of further production constraints at its Mandalong mine.
Deliveries from the Mandalong mine are expected to be interrupted during the remainder ofFY2022 and into the first half of FY2023.
Equipment supply chain delays are also expectedto impact coal deliveries in FY2023.
The recent material under-delivery of coal to Eraring results in lower output from the plant,additional replacement coal purchases at significantly higher prices, and is beingexacerbated by coal delivery constraints via rail.
Despite positioning the year with a relativelylow short position across all states, the lower output from Eraring results in a greaterexposure to the purchase of electricity at current high spot prices in order to meet customerdemand.
