0025 GMT - Origin Energy's dividend looks safe despite the drag on free cash flow and net debt from the forward sale of 30 liquefied natural gas cargoes from the APLNG project in 2018, Citi says. The cargoes are due to be delivered to Japan's Kansai Electric from 2025. "The price will not be today's market price, but the US$1.1 billion that was forward sold by APLNG," analyst James Byrne says. While that equates to US$37 million per cargo, there is no cash flow earned, Citi says. Origin's balance sheet is in good shape, meaning it can stretch its payout ratio beyond the minimum 50% framework to compensate for the drag on cash flow, Citi says; "A progressive dividend policy is likely still the right way to think about the outlook." (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

February 13, 2025 19:25 ET (00:25 GMT)

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