Some nice charts here from Morgan Stanley tell the tale of Origin self-destruction. First a look at the historical earnings mix:
ORG EPS growth has historically been driven by its local energy retailing business. A plodding utility-like business in which ORG did well. However, APLNG changes everything and turns ORG earnings instead into a highly cyclical oil play.
Second, and this is the money chart, if you invest in major capex that delivers really poor returns you basically become a balance sheet black hole that eats capital and we can see this process playing out in ORG’s reported profit versus its writedowns:
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