Origin posts first-half profits slump

Conditions which saw profits decline  not expected to ease 16000646 800496833 0 0 14033469 300

One of the country's major electricity suppliers has seen a major slump in its profits, with a number of jobs on the line.

Origin Energy recorded a first-half net profit of $524 million – a 34 per cent drop from the same period last year.

The company attributed this fall to a number of factors, including a freeze on electricity tariffs in Queensland, which resulted in a loss of market share in New South Wales.

The report from the company about its performance found that it doesn't expect conditions to get any better.

"Origin expects the regulatory and market competitive pressures that have affected the half year result in Energy Markets to continue in the second half of the 2013 financial year."

One way in which the company can absorb the loss in revenue, is to slash jobs, with 850 to go by the end of the year.

Chairman of the company Kevin McCann said they have experienced harsh economic conditions.

He elaborated: "The first half of the financial year was characterised by more challenging operating conditions in the energy markets segment, which has impacted profit and cash flow."

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Posted by Charlie Moore