Origin to recognise non-cash impairment charge in Jul-Dec
Australia’s Origin Energy expects to recognise a non-cash impairment charge from the sale of its 10% stake in Australia Pacific LNG (APLNG), it said on February 10.
The impairment charge is expected to be A$190mn-A$200mn ($136.38mn-$143.56mn) and would be taken during the six months to December 31 (H1). On completion of the transaction, which is expected in the first quarter of the calendar year 2022, this charge will be partially offset by the release of a A$100mn-A$110mn benefit from the foreign currency translation reserve, Origin said.
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The company is also expected to book a capital gains tax expense of A$170mn-A$180mn from the transaction. No significant cash tax payment is expected as a result of offsetting tax deductions, it said.
Origin’s intention to sell down a 10% stake in APLNG for A$2.12bn was announced in October last year. Following the sale's completion, the APLNG joint venture shareholders will comprise ConocoPhillips (37.5%), Origin (27.5%), Sinopec (25%) and EIG (10%).