Origin Energy’s APLNG revenue was slightly ahead of UBS’ forecast for the March Q as higher realised LNG pricing offset production disruption due to the weather. Origin has already sold 14 LNG cargoes in FY22 when 10 per year is normal.
Strong free cash flow from APLNG will allow Origin to fund growth and further capital management from the first half FY23 following the current buy-back, UBS suggests, but finding enough caol supply for Eraring could be a fly in the ointment.
Buy and $7.00 target retained.
Sector: Utilities.
Target price is $7.00.Current Price is $6.82. Difference: $0.18 – (brackets indicate current price is over target). If ORG meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
