Origin inappropriate to give earnings guidance

SYDNEY - Origin Energy, Contact Energy's major shareholder, says it is not appropriate to give earnings guidance for the current year as its performance is still dependent on production from certain projects.

Origin chairman Harry McCann said told shareholders at the company's annual general meeting that its results for the first quarter were such that its earlier decision not to give guidance was unchanged.

"On announcement of our full year results we advised that there were a number of factors which made the giving of formal guidance as to profits for the current year inappropriate," he said.

"The current year's results will, in particular, be dependent on the commencement of production from the BassGas Project, the Offshore Otway project and the relative contribution made by Contact compared to the prior year.

"We advised therefore that it was possible that there would be little growth in earnings per share in the coming year."

Mr McCann said BassGas is approaching full production, albeit it later than expected, there are delays in commencement of commissioning of the Otway Project and that Contact Energy is expected to make a materially lower contribution than it did in the prior year.

"Notwithstanding these factors our results for the first quarter are such that our earlier comments on outlook for profit in the coming year remain appropriate," he said.

Mr McCann also said Origin would continue to review potential acquisitions.

- AAP