Origin Energy (ORG): Integrated Energy Company

Origin Energy (ORG) is an integrated energy company focused on gas and oil exploration and production, power generation and energy retailing in Australia. Its key operating segments include oil & gas exploration and production, LNG operation, energy retailing and power generations. It also conducts the business in New Zealand through a 53.1% investment in Contact Energy.
Origin’s position in the market as the leading Australian integrated energy company reflects our strategy to develop our business and deliver value to shareholders. Today, Origin Energy employs more than 6,700 people, operate one of the largest generation portfolios and service the energy needs of more than 4.3 million customers. This company focuses on becoming a regional

Between 2010 and 2012, EBIT increased rapidly from $962 million to $1675 million. It may indicate that the company has greater financial performance of the earning power than before. However, the EBIT has a slight decrease after 2012. The major projects could be delay and cost more than intended or not perform as planned may be the main reason for next year’s financial performance (2013). In addition, the growth trend of interest expense could show the company has invested in more projects in recent years. The figures of net profit after tax are most volatile in this table, and the highest number is $1058 million in 2012 and the lowest number is $248 million in 2011, which means that Origin energy has some operational risks what influenced the operating profit during these years. The dividends of the company are increasing steadily from $409 million to $555 million between 2010 and 2014. Thus, the share price of Origin energy has a growing trend in last five years. The retained profits of the company are maintained at a stable level and the depreciation expense is rising slightly between 2010 and 2014. It may indicate that Origin energy tries to expend through investing more equipment and projects. At last, intangibles of the company have a sharp increase

The unprecedented growth rate is extremely rare in Energy industry. By contrast, the cost of sales is not significant in last five years, which means the Beach energy Limited has outstanding financing performance and improving the earning power. According the table, EBIT has an obvious rise from negative $18.52 million to $376.11 million. Thus, he company managers make the right decisions for company status and assist Beach energy to become profitable. Besides, the figure of interest expense is rising sharply from $6.06 million to $26.56 million, between 2010 and 2014 because the company has rapid growth since 2010. The net profits after tax is quite instability in last five years. It may indicate that Beach energy has some risks of operation, such as major bad debt write-offs and acquisition expenses (2014). In addition, the trend of dividend is U-shaped. In last three years, dividends have a sharp increase from the lowest $10.67 million to the highest $30.78 million, between 2012 and 2014, which means that the share price of Beach energy is rising rapidly in last three years. The retained profits went upwards from $250.77 million to $572.50 million, between 2011 and 2014. Serve flooding and localized rain events in Beach energy’s Cooper Basin tenements may be the reason that retained profit in 2011 is lower than 2010. Moreover, the depreciation expense has a slight