Shares in Origin Energy Ltd (ASX: ORG) edged lower this afternoon after the group revealed an underlying net profit of $354 million for the full year ending June 30 2016. The underlying EBITDA from continuing operations was $1.6 billion, which is roughly in line with the prior year.

However, the headline number was a huge loss of $589 million after the company wrote off the value of $515 million worth of assets including its Cooper Basin, BassGas and Otway projects. While the value of international development projects in Chile and Indonesia was also written off to the tune of $106 million.

Many of these assets are LNG-production related and their value has been lowered as a result of the mark down in their expected future cash flows as a result of plunging energy prices and today’s low growth world. The group also sold assets alongside slashing capital expenditure and employee numbers in a bid to survive the precipitous falls in global energy prices during FY16.

Full year underlying earnings per share were 23.2 cents with the group failing to declare a dividend. This is no surprise given adjusted net debt stands at $9.1 billion, despite an equity raising over the period that helped lower net debt by $4.1 billion.

Origin’s primary business is energy generation and retailing to the consumer market across Australia and this business performed respectably over the year, with underlying EBITDA of $1.3 billion and it expects this division to increase EBITDA to between $1.44 billion to $1.54 billion in FY17.

It also expects net debt to fall below $9 billion in FY17 with a forecast for an even better FY18 as its giant (and costly) Australia Pacific LNG project transitions from development to production of LNG.

Outlook

Origin remains in part at the mercy of global energy prices, but less so than its peers such as Santos Ltd (ASX: STO) or Woodside Petroleum Limited (ASX: WPL).

Its consumer electric and gas retailing business is also a consistent cash cow, however this is a competitive space where it’s hard to consistently lift margins. The debt profile and patchy outlook for energy prices means this is a stock I suggest investors give a wide berth, especially as there are many other businesses to invest your money in.

How 1 Man Made 100x His Money After 50

Few know, that as Warren Buffett blew out the candles on his 50th birthday cake, he had just 1% of his current fortune. Think about it: At an age when most give up hope, Buffett was just getting started on the remaining 99% of his fortune. Goes to show you that it's never too late for you to potentially get rich. Which is why we've gathered the strategies we learned from Buffett, distilled them down to 11 simple lessons, and put it in an exclusive report for you to claim. Just click here to learn more about this handy investing guide.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor Tom Richardson has no position in any stocks mentioned.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.