It's been a wild ride for Origin Energy Ltd (ASX: ORG) shareholders over the past year with the stock price swinging by 26.5% from a low of $12.81 in December 2013 to a recent high of $16.21 earlier this month. Despite this major move, the overall yearly return is a much more benign gain of 10.5%. Although that's still better than the return from the (INDEXASX: XJO) which has gained just 7% in the last 12 months.
Having released an unexciting set of full year numbers in August which showed a 7% fall in underlying earnings per share, Origin's management has now set off on an International Roadshow to not only present those results to overseas investors and analysts, but also to talk up the energy player's future.
Here are four reasons to be positive on Origin's future outlook:
1) The group continues to improve the performance of its existing businesses. Initiatives have included the transformation of its retail division to deliver operational and cash flow improvements, expansion of its gas margins and lower generation costs at the NZ-based Contact Energy.
2) The Australia Pacific LNG Project remains on track for first LNG production in mid-2015, with the estimated costs to complete in line with budget.
3) Improvements in Origin's funding position which includes a lengthening of debt maturities and improved liquidity thanks to the recently announced $1.4 billion European hybrid securities issuance.
4) Management is putting in place future growth initiatives including pursuing opportunities to expand the group's gas resources in the Cooper, Beetaloo and Browse basins.
