Origin Energy Faces Balance-Sheet Constraint from Oversupply

Dow Jones
Aug 03

0108 GMT - Origin Energy's balance sheet could be constrained by power oversupply dynamics past fiscal 2030, Macquarie analysts warn. They tell clients in a note that price weakness in both electricity and gas is a major headwind for the Australian generator and retailer. The analysts say government intervention has pushed the power market into oversupply and that the outlook at least into fiscal 2029 appears to be extremely challenged. They add that it is unclear how the oversupply will clear unless generators phase out coal on schedule, which consensus views as unlikely. Macquarie keeps a neutral rating on the stock and lowers its target price 1.6% to 10.00 Australian dollars. Shares are up 1.9% at A$10.96.

 

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