Red Sea Explorer blog Origin Elec Stock Price Review

Origin Elec Stock Price Review

Founded in the 1890s, origin elec has become Australia’s largest integrated energy company. They are involved in the generation, transmission, distribution and retailing of electricity and gas to residential, commercial and industrial customers across Australia. Their aim is to make energy more affordable, smarter and sustainable. They are committed to using renewable energy sources and have recently diversified into heating, cooling and hot water solutions. They regularly update their energy plans and offer competitive rates, which you can compare on GoSwitch.

Powering Up: Exploring the Benefits of Origin Energy Electricity Services

In addition to a range of fixed and variable electricity plans, origin elec also offers embedded network solutions (centralised power for apartment blocks). Origin-operated embedded networks allow developers to purchase wholesale electricity at discounted prices from one central meter that is connected to the National Electricity Market. Each individual apartment then gets their own meter and connects to the network via a separate meter from the parent meter.

Origin has a strong liquidity position with undrawn committed credit facilities and cash of around AUD2.7 billion. They have low leverage and a history of demonstrating financial discipline in the past when their debt ratio has exceeded their targeted range. They have a modest dividend policy and have a large amount of capital that can be used for growth or debt reduction. They have a good record on climate and have signed up to many global initiatives. However, a detailed plan to move away from their reliance on coal and CSG is needed.

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