Put the Origin Energy Ltd (ASX: ORG) share price on your watch list – the energy company's set to release its earnings for financial year 2021 (FY21) tomorrow morning.
The Origin share price slumped yesterday. It ended the day 1.38% lower than Monday's close. That was pretty much in line with the broader market – the S&P/ASX 200 Index (ASX: XJO) fell 0.85% over the course of the day.
So, as the market awaits the release of Origin's FY21 earnings, let's flashback to this time last year to see how the Origin share price reacted to its FY20 results.
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Origin's FY20 results
Origin dropped its FY20 results on 20 August 2020. Unfortunately, the market didn't exactly greet the release with enthusiasm.
The Origin share price fell 6.1% on the back of its FY20 earnings. Here's a snapshot of what it reported for the 12 months ended 30 June 2020:
- Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of around $3.14 billion – 2.8% less than FY19.
- Profits of $83 million, a 93% drop
- Underlying profits of around $1.02 billion – in line with FY19
- 10-cent final dividend, bringing FY20's total dividends to 25 cents per share
Over FY20, Origin reduced its corporate and LNG hedging costs. However, it also battled lower electricity prices, resulting in a drop in revenue.
Origin ended the period with around $5.15 billion worth of debt, $773 million less than it had at the start of the financial year.
What's driven the Origin share price since?
Since then, the Origin share price has sunk 22% to trade at $4.29
Origin decreased its FY21 profit guidance on 4 February. Then, as expected, it reported a 97% drop in profits for the first half of FY21.
However, the company slightly recovered over the third quarter, posting commodity revenues of just 32% less than the prior corresponding period.
Unfortunately, late last month Origin announced it expects to recognise non-cash impairment charges of $2,247 million post-tax in its FY21 statutory income statement. Additionally, it lowered its outlook for FY22.
The Origin share price fell 7.8% on the back of the news.
All eyes will be on Origin again tomorrow when its FY21 earnings hit the market.
