Origin Energy Limited · ASX:ORG
Origin Energy — Securities Institute – Energy Showcase (2001)
13 slides from Origin Energy's conference presentation, 2001
Slide 1: Creating Shareholder Value in the Australian Energy Sector
Securities Institute – Energy Showcase Creating Shareholder Value in the Australian Energy Sector
Slide 2: At the time Origin Energy was first listed there were many questions
At the time that Origin Energy was first listed on the ASX there were many questions about its strategy and future $3.50 Quotes from the time $3.00 •“Undervalued but better put some runs on the board $2.50 quickly” •“ORG has struggled post $2.00 listing” •“ORG is likely to appeal to a $1.50 predator
Slide 3: Today much of that sentiment has changed and some regard us as a market leader
….while today much of that sentiment has changed and some regard us as a market leader $3.50 Quotes from the time $3.00 •“we initiate coverage with a buy recommendation ” $2.50 •“look for some gold medal performances ” •“Leveraging low value gas $2.00 into high value electricity” $1.50 •“(the Powerc
Slide 4: Key events and milestones that have led to a re-rating of Origin Energy
Key events and milestones that have led to a re-rating of Origin Energy include the following………. Geographe discovery announced $3.50 OE separately listed Full year results $3.25 on ASX announcement Thylacine discovery announced $3.00 AGM: Chairman’s Half Year Results $2.75 Share price ($ per share)
Slide 5: Origin Energy has positioned itself in the competitive segments of the energy industry
Origin Energy’s has positioned itself in the competitive segments of the energy industry… Exploration Exploration&&Production Production Generation Generation •• Over Over1000 1000PJE PJEreserves reserves •• Total Totalcapacity capacity500 500MWMW •• Market Marketfocussed focussedportfolio portfolio
Slide 6: Our financial position is strong post the Powercor acquisition
Our financial position is strong post the Powercor acquisition 1st full year* as an Post Powercor independent company acquisition • Total assets of $2.2 billion • Total assets of $2.6 billion • Revenue approaching $1.4 • Annual revenue of $2.2 billion billion • Expect a moderate increase in • EBITDA
Slide 7: Origin uses operating cash flow return on funds employed as primary measure of value
Origin uses operating cash flow return on funds employed as the primary measure of value • Origin Energy aims to be in the top third of Australian companies in terms of total shareholder returns • Operating cash flow return on funds employed is the most appropriate measure of shareholder value and t
Slide 8: Energy industry participants face major uncertainties in their operating environment
However energy industry participants are faced with major uncertainties in their operating environment…. • Deregulation • Changing schedules for contestability • Pool price volatility • Overhang of generation capacity in some areas • Temptation to pay too much for assets • New and uncertain competit
Slide 9: A competitive energy market has increased risks, requiring flexibility
A competitive energy market has increased risks, requiring participants to be more flexible and responsive Industry risks: • Regulatory • Long term economic Origin’s response: • Commodity (oil) • Integrated strategy, • Weather concentrating on + competitive segments • Creating internal Competition r
Slide 10: Vertical integration provides "Pull Through"
Vertical integration provides “Pull Through” - the ability to create markets or use market positions to support projects Investment Supported By Roma Peakers / QLD Gas Production & CSM Development Contracts BP Bulwer Refinery Co-Gen / QLD Gas Production & Completed CSM Development Contracts Ladbroke
Slide 11: Breadth of activities allows Origin to meet aspirations for a cleaner environment
The breadth of our activities allows Origin Energy to meet aspirations for a cleaner environment in many ways • Reducing greenhouse gas intensity through cleaner conventional power – gas fired generation and cogeneration • Contracts for the Codrington wind-farm • Ecosaver retail electricity product-
Slide 12: Origin is confident its strategic direction is correct
Origin is confident its strategic direction is correct • Focus on cash generation • Aware of risks and a strong focus on risk management • Ability to identify and deliver upon opportunities for growth Page 12
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