Origin Energy shares hit five-year lows
SHARES in Origin Energy were pushed to five-year lows in early trading on a profit warning issued Thursday night, which flags flat earnings in the year ahead, snapping a steady run of double-digit earnings growth.
Origin has warned that earnings before interest, tax, depreciation and amortisation in the year to June, 2013, would rise by between zero and 5 per cent year on year, compared with earlier guidance of a 5-10 per cent rise.
The net profit after tax is now expected to be flat, year on year.
It blamed a $40 million hit from the cost of renewable energy certificates which it cannot recover for the flat profit outlook.
Usually, the company is able to recover that cost in future years in NSW, but not in Queensland. Origin is the largest electricity supplier to the two markets.
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