Origin Energy announces losses and job cuts, shares get dumped

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Shares in Origin Energy were sold down heavily after the energy group announced a $658 million annual loss and plans to cut 800 staff.

The losses reflect a write down of Origin’s investment in Contact Energy, the non-cash impact of the recent depreciation of the Australian dollar and interest expenses.

Underlying profit was $682 million, a 4% rise.

The company plans to cut 800 jobs by the 2017 financial year and to reduce cash costs across Origin by $200 million.

Managing director Grant King says Origin delivered a solid operational performance.

“We have improved returns in energy markets, Australia Pacific LNG remains on track, our capabilities in renewables continue to grow with important progress made in solar, and liquidity is sufficient to meet our remaining contributions to Australia Pacific LNG and other business initiatives,” King says.

Its shares are down 11% to $8.76.

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