Origin Energy Subordinated Notes - Key Financial Ratios
Origin Energy Limited (Origin) today released the following financial ratios which have been calculated as at 31 December 2012 (Testing Date) in accordance with the requirements set out in the Origin Energy Subordinated Notes Prospectus dated 1 December 2011 (Prospectus). Unless otherwise defined in this notice, capitalised terms used in this notice have the same meaning as defined in the Prospectus.
As set out in the Prospectus, the Leverage Ratio and Interest Cover Ratio will be tested every six months to determine whether or not a Mandatory Deferral Event exists. As at 31 December 2012, no Mandatory Deferral Event had commenced.
A Mandatory Deferral Event will commence if Origin's Interest Cover Ratio in relation to a Testing Date is less than the Minimum Level (being 3.5 times), or if Origin's Leverage Ratio in relation to two consecutive Testing Dates is above the Maximum Level (being 4.0 times). A Mandatory Deferral Event will continue until Origin's Interest Cover Ratio in relation to a Testing Date is at or above the Minimum Level and its Leverage Ratio has not been above the Maximum Level in relation to two consecutive Testing Dates.
Interest Cover Ratio (Underlying EBITDA/Net Interest Paid)
The Interest Cover Ratio is calculated as the ratio of Underlying EBITDA1,2 for the relevant six month period to Net Interest Paid for the relevant six month period.
The table below shows the Interest Cover Ratio for each of the six months ended 31 December 2012, 30 June 2012 and 31 December 2011.
Interest Cover Ratio:
| 6 months ended 31 Dec 2012 ($m) | 6 months ended 30 June 2012 ($m) | 6 months ended 31 Dec 2011 ($m) | |
| Underlying EBITDA1,2 | 1,055 | 1,100 | 1,157 |
| Interest paid1 | 223 | 206 | 197 |
| Interest received1 | (5) | (14) | (23) |
| Net Interest Paid | 218 | 192 | 174 |
| Interest Cover Ratio (times) | 4.8 | 5.7 | 6.6 |
| Minimum Ratio (times) | >3.5 | >3.5 | >3.5 |
Leverage Ratio (Relevant Net Debt (divided by two) / Underlying EBITDA)
The Leverage Ratio is calculated as the ratio of Relevant Net Debt (divided by two) to Underlying EBITDA3,4 for the relevant six month period.
Relevant Net Debt is Adjusted Net Debt3,4 calculated to reflect the extent to which Origin's debt is ascribed equity credit categorisation and also includes Origin's share of the net debt of Australia Pacific LNG (if any).
The table below shows the Leverage Ratio for each of the six months ended 31 December 2012, 30 June 2012 and 31 December 2011.
Leverage Ratio:
| 6 months ended 31 Dec 2012 ($m) | 6 months ended 30 June 2012 ($m) | 6 months ended 31 Dec 2011 ($m) | |
| Underlying EBITDA3 | 1,055 | 1,100 | 1,157 |
| Adjusted Net Debt4,5 | 6,266 | 5,738 | 4,409 |
| Less: 100% of Euro Capital Securities6 | (636) | (619) | (637) |
| Less: 100% of Subordinated Notes | (900) | (900) | (900) |
| Less: 100% of Capital Bonds6 | (159) | (157) | (152) |
| Add: Origin's 37.5% share of APLNG Net Debt6 | 526 | - | - |
| Add: 50% of NZ$ Preference Shares | 77 | 76 | 74 |
| Relevant Net Debt | 5,174 | 4,138 | 2,794 |
| Relevant Net Debt (divided by two) | 2,587 | 2,069 | 1,397 |
| Leverage Ratio (times) | 2.5 | 1.9 | 1.2 |
| Maximum Ratio (times) | <4.0 | <4.0 | <4.0 |
1 As disclosed in Origin's Interim Financial Statements released to the ASX on 21 February 2013. 2 Underlying EBITDA is a non-IFRS measure. This measure is used instead of its equivalent statutory measure as required by the terms of the Prospectus. Non-IFRS measures have not been subject to audit or review. 3 As disclosed in Origin's Interim Financial Statements released to the ASX on 21 February 2013. 4 Underlying EBITDA and Adjusted Net Debt are non-IFRS measures. These measures are used instead of their equivalent statutory measures as required by the terms of the Prospectus. Non-IFRS measures have not been subject to audit or review. 5Net debt adjusted to remove fair value adjustments on borrowings in hedge relationships 6 Converted into AUD at the exchange rate as at the relevant reporting date
For further information please contact:
| Media Lina Melero General Manager External Affairs Ph: +61 2 8345 5217 Mobile: +61 427 017 798 | Investors Kylie Springall Group Manager, Investor Relations Ph: +61 2 8345 5288 Mobile: +61 400 477 393 |
About Origin Energy Origin Energy (ASX: ORG) is the leading Australian integrated energy company focused on gas and oil exploration and production, power generation and energy retailing. A member of the S&P/ASX 20 Index, the company has more than 5,800 employees and is a leading producer of gas in eastern Australia. Origin is Australia's largest energy retailer servicing 4.3 million electricity, natural gas and LPG customer accounts and has the country's largest and one of the most flexible generation portfolios with approximately 5,900 MW of capacity, through either owned generation or contracted rights. Origin's strategic positioning and portfolio of assets provide flexibility, stability and significant opportunities for growth across the energy industry. Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing one of Australia's largest CSG to LNG projects based on Australia's largest 2P CSG reserves base.
In New Zealand, Origin is the major shareholder in Contact Energy, the country's leading integrated energy company, operating geothermal, thermal and hydro generation facilities and servicing electricity, gas and LPG customers across both the North and South islands. Origin also operates several oil and gas projects in New Zealand and is one of the largest holders of petroleum exploration acreage in the country.
Origin has a strong focus on ensuring the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in renewable energy technologies.
For more information go to www.originenergy.com.au.
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