Origin is assessing a range of funding options for the joint venture, which includes tapping debt markets , conducting another equity raising and selling up to 7.5% interest in APLNG.
Origin and Conoco Phillips have agreed to sell LNG cargoes
and 15% of the project to China's Sinopec, reducing their holdings to 42.5%
each. Talks with other potential LNG buyers continue and that Origin expects to
end up with more than 35% of the project's equity, but probably closer to 40%.
Origin is optimistic about raising more through share issue after $2.3
billion capital raising
Origin Energy will raise 2.3 billion Australian dollars
(US$2.32 billion) through share issue on the Australian market
this year.Proceeds will reduce debt
associated with the A$3.26 billion purchase of electricity assets privatized by
the New South Wales state government.
Origin will continue to have Australia's strongest
balance sheets
Origin already had one of Australia's strongest balance
sheets after it sold a half share of its coal seam gas assets in Queensland
state to U.S. oil major ConocoPhillips (COP) in 2007 for up to US$8 billion. By
launching the raising early in 2011, Origin has been able to reinstate full
year underlying profit guidance of around 15% growth, having lowered it last
month to 10-15%, because paying off debt will reduce its interest bill.
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