First half results were ahead of UBS estimates, largely because of a strong operating performance from APLNG. The board will now consider on-market buybacks to supplement dividends. UBS believes this will be accretive.
Headwinds continue in the energy markets business from re-pricing of retail and in gas and electricity. UBS lowers FY22-23 estimates to reflect continued margin pressure. Buy rating retained. Target is reduced to $5.50 from $5.75.
Target price is $5.50.Current Price is $4.45. Difference: $1.05 – (brackets indicate current price is over target). If ORG meets the UBS target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).