Origin shares continue to bath in red over the course of this year.
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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.
Should you invest $1,000 in Origin Energy right now?
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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.