Origin (ASX:ORG) share price slides 5% after revenue decline

Origin shares continue to bath in red over the course of this year.

| More on:
Downward red arrow with business man sliding down it signifying falling asx share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Origin Energy Ltd (ASX: ORG) share price has crept into the red during early trade on Thursday. At one point, Origin shares were exchanging hands at $4.08 apiece, a 5% drop on the day.

Today's pressure on the charts arrives as Origin reported its FY21 earnings this morning.

What's up with the Origin Energy share price today?

The Origin Energy share price is on the move as the company reported a significant down-step in its earnings over the course of FY21.

To illustrate, Origin recognised an 8% year on year down-step in revenue to $1.2 billion, whereas it recorded a 35% decrease in EBITDA from the year prior.

As a result, this contributed to a statutory loss of $2.2 billion. It, therefore, comes as little surprise that Origin also trimmed its dividend by 2.5 cents from FY20, announcing an unfranked 7.5 cents per share final dividend.

This brought the final dividend to 20 cents per share for FY21, signifying a 31% payout ratio from its cash flow.

Moreover, Origin also booked a 24% and 40% decrease in its electricity and natural gas segments, respectively.

Despite these headwinds, Origin reduced its Scope 1 and 2 equity emissions by 8% and launched an electrical vehicle (EV) platform.

In addition, the company expects these challenges to remain in place for the time being and into FY22.

Investors have punished Origin shares on the back of the announcement. The Origin share price is now changing hands at $4.26, a 2.4% dip into the red from the opening of trade.

Origin Energy share price snapshot

The Origin Energy share price has had a choppy year to date, bathing in a sea of red since January 1. Origin shares have posted a loss of 10% this year, extending the previous 12 month's loss of 28%.

These returns have lagged the S&P/ASX 200 Index (ASX: XJO)'s return of around 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

man grimaces next to falling stock graph
Share Fallers

Why did this ASX 100 stock just crash 11%?

Cleanaway shares have been on a crazy roller-coaster over the past 24 hours.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Brambles, Lifestyle Communities, Northern Star, and Select Harvests shares are sinking

These shares are having a tough session. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Cettire, DroneShield, St Barbara, and Star shares are dropping today

These ASX shares are having a tough time on Monday. But why?

Read more »

Woman in dress sitting in chair looking depressed
Consumer Staples & Discretionary Shares

Cettire share price plunges 6% after major investor pulls the plug

A 'red flag' triggered this investment company to sell out completely.

Read more »

A skydiving man in a jester hat and carrying a burger and sauce, pokes out his tongue at the camera, indicating all is not lost when you're falling.
Technology Shares

Why is the Droneshield share price crashing 19% on Monday?

Investors are sending shares in Droneshield down 19% in morning trade.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why COG, Karoon Energy, Netwealth, and Pilbara Minerals shares are dropping today

These ASX shares are ending the week deep in the red. But why?

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Evolution Mining, Karoon Energy, ResMed, and Sayona Mining shares are dropping today

These ASX shares are having a tough session. But why?

Read more »

A young woman wearing a blue and white striped t-shirt blows air from her cheeks and looks up and to the side in a sign of disappointment after the ASX shares she owns went down today
Share Fallers

Why Australian Strategic Materials, Boral, Dubber, and Macquarie Technology are falling today

These shares are having a tough hump day. But why?

Read more »