Origin has reported a total loss of $658 million over the 2014/15 financial year and has flagged more than 800 job losses in the short term as it tries to shore up its balance sheet.
The company has listed a number of factors as contributing to the result, including the low oil price environment and the depreciation of the Australian dollar.
Origin Chairman Gordon Cairns said “We have consistently stated that the 2015 and 2016 financial years are transitional years for Origin, as we complete the final stages of our investment in Australia Pacific LNG.
“Work on the Australia Pacific LNG project is nearing completion and the project remains on track to commence sustained production from Train 1 from the second quarter of the 2016 financial year and from Train 2 approximately six months later.
Mr Cairns noted that the current price environment is proving challenging, and that the company is “mindful that the significant fall in oil price, if sustained at current levels, will result in lower growth in cash flow and earnings than previously expected.
“It is therefore prudent for the company to continue to focus on reducing operating and capital costs, realigning debt across the group entities and where appropriate divest assets, in order to increase Origin’s financial flexibility in the short to medium term.”
In its presentation Origin also flagged increased costs for the completion of the APLNG project, up $550million to $1.8billion.
Origin shares closed 13 per cent lower following the announcement, down to $8.60.