Credit Suisse assesses the fourth quarter produced a good result from LNG, with production in line with guidance despite Origin Energy curtailing production.
The company’s share of APLNG distributions was at the top end of guidance. The main change to the broker’s FY21 estimates is a reduction in operating expenditure being carried forward.
Residential demand uplift as a result of increased working from home did not eventuate and declines in retail electricity demand continue. Neutral maintained. Target is reduced to $5.70 from $6.00.
Target price is $5.70.Current Price is $5.37. Difference: $0.33 – (brackets indicate current price is over target). If ORG meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).