Origin Energy Contact Finance No. 2 Limited Interim Financial Statements. Please find attached a release on the above subject.

Transcription

1 To NZX Map Team Date 27 February 2015 Company NZX Market Announcement Platform Pages 15 From Marta Kielich Subject Origin Energy Contact Finance No. 2 Limited Interim Financial Statements Please find attached a release on the above subject. Regards Marta Kielich Company Secretary marta.kielich@originenergy.com.au Origin Energy Limited ACN Level 45 Australia Square, George Street, Sydney NSW 2000 GPO Box 5376, Sydney NSW 2001 Telephone (02) Facsimile (02)

2 Interim Financial Statements For the period from 1 July 2014 to 31 December 2014

3 The Directors are pleased to present the half year report including the interim financial statements of Origin Energy Contact Finance No.2 Limited for the period from 1 July 2014 to 31 December For and on behalf of the Board of Directors Director D. Barnes Date: 27 February 2015 Director O. W. Poole Date: 27 February 2015 Contents 3 Directory 4 Statement of compehensive income 5 Statement of financial position 6 Statement of changes in equity 7 Statement of cash flows 8 Notes to the interim financial statements 2

4 Directory Nature of business Registered office Offering preference shares to the public Level 3, Energy House 32 Molesworth Street New Plymouth, 4310 New Zealand Incorporation number IRD number Directors Dennis Barnes Grant King Owen Poole - non-executive director Auditor Banker Solicitor Business location KPMG Westpac Banking Corporation Bell Gully New Plymouth 3

5 Statement of comprehensive income Unaudited Unaudited Audited 6 Months 6 Months 12 Months Ended Ended Ended 31 December 31 December 30 June Note Dividend income 3,240 2,894 6,134 Administrative expenses (10) (12) (14) Other expenses 2 (44) (46) (79) Operating profit before financing income 3,186 2,836 6,041 Finance income Net finance income Profit before tax 3,191 2,838 6,046 Income tax benefit / (expense) 4 - (118) (118) Profit after tax 3,191 2,720 5,928 Other comprehensive income for the period, net of income tax Total comprehensive income for the period 3,191 2,720 5,928 The accompanying notes form an integral part of these interim financial statements. 4

6 Statement of financial position as at 31 December Unaudited Unaudited Audited 31 December 31 December 30 June Note Assets Cash and cash equivalents Total current assets Investments in related Group companies 5 200, , ,000 Total non-current assets 200, , ,000 Total assets 200, , ,111 Equity Share capital 6 200, , ,568 Retained earnings deficit (515) (434) (466) Total equity 200, , ,102 Liabilities Provisions Total current liabilities Total liabilities Total equity and liabilities 200, , ,111 The accompanying notes form an integral part of these interim financial statements. 5

7 Statement of changes in equity Ordinary share capital Preference share capital Retained earnings deficit Total equity Balance as at 1 July , ,868 (260) 200,308 Total comprehensive income for the period: Profit for the period - - 2,720 2,720 Other comprehensive income, net of income tax Transactions with owners recorded directly in equity Dividends paid to equity holders - - (2,894) (2,894) Total transactions with owners recorded directly in equity - - (2,894) (2,894) Unaudited closing balance as at 31 December , ,868 (434) 200,134 Opening balance as at 1 January , ,868 (434) 200,134 Total comprehensive income for the period: Profit for the period - - 3,208 3,208 Other comprehensive income, net of income tax Transactions with owners recorded directly in equity Dividends paid to equity holders - - (3,240) (3,240) Total transactions with owners recorded directly in equity - - (3,240) (3,240) Audited closing balance as at 30 June , ,868 (466) 200,102 Opening balance as at 1 July , ,868 (466) 200,102 Total comprehensive income for the period: Profit for the period - - 3,191 3,191 Other comprehensive income, net of income tax Transactions with owners recorded directly in equity Dividends paid to equity holders - - (3,240) (3,240) Total transactions with owners recorded directly in equity - - (3,240) (3,240) Unaudited closing balance as at 31 December , ,868 (515) 200,053 - The accompanying notes form an integral part of these interim financial statements. 6

8 Statement of cash flows Unaudited Unaudited Audited 6 Months 6 Months 12 Months Ended Ended Ended 31 December 31 December 30 June Note Cash flows from operating activities Dividends received 3,240 2,894 6,134 Net interest received Payments to suppliers (52) (57) (91) Net cash flows from operating activities 11 3,193 2,839 6,048 Cash flows from financing activities Dividends paid 6 (3,240) (2,894) (6,134) Net cash used in financing activities (3,240) (2,894) (6,134) Net increase in cash and cash equivalents (47) (55) (86) Cash and cash equivalents at the beginning of period Cash and cash equivalents at the end of period The accompanying notes form an integral part of these interim financial statements. 7

9 Notes to the interim financial statements 1 Basis of accounting Origin Energy Contact Finance No. 2 Limited (the Company ) is a limited liability company incorporated and domiciled in New Zealand. The Company is a deemed issuer in terms of the Financial Reporting Act The interim financial statements of the Company are In this report the "Period" includes the results for the period from 1 July 2014 to 31 December Comparative figures are from 1 July 2013 to 31 December 2013 unless otherwise stated. Statement of compliance and basis of preparation The interim financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP), and should be read in conjunction with the 30 June 2014 Annual Report. They comply with the New Zealand equivalent to International Accounting Standard 34 - Interim Financial Reporting (NZ IAS 34) and also comply with International Accounting Standard 34 - Interim Financial Reporting (IAS 34). The interim financial statements have been approved by the Board of Directors on 27 February The interim financial statements have been prepared on the historical cost basis except equity investments classified as available-for-sale which are measured as stated in note 5. The interim financial statements are presented in New Zealand Dollars (NZD), the Company s functional currency, and rounded to the nearest thousand dollars, unless otherwise stated. Changes in accounting policies There have been no changes in accounting policies since 30 June The accounting policies set out in the 2014 Annual Report have been applied consistently to all periods presented in these interim financial statements. Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The basis of estimation for the period and the key areas where estimates have been applied is consistent with the financial statements for the full year ended 30 June

10 Notes to the interim financial statements Unaudited Unaudited Audited 6 Months 6 Months 12 Months Ended Ended Ended 31 December 31 December 30 June 2 Other expenses Directors' fees (10) (11) (23) Share register audit fees (2) (5) (8) Share register maintenance fees (32) (30) (48) (44) (46) (79) Statutory audit fees for the Company are borne by a related Origin Energy Group Company. 3 Net finance income Interest income Net finance income Income tax (benefit) / expense Deferred tax expense Derecognition of tax losses in the current period Income tax (benefit) / expense Reconciliation of effective tax rate Profit before tax 3,191 2,838 6,046 Income tax using the Company tax rate at 28% ,693 Tax effects of imputation credits (1,260) (1,125) (2,386) Gross up of imputed dividend income Tax losses for which no deferred tax asset recognised

11 Notes to the interim financial statements Unaudited Unaudited Audited 6 Months 6 Months 12 Months Ended Ended Ended 4 Income tax (continued) 31 December 31 December 30 June Deferred tax assets Opening balance Recognised in income - (118) (118) Closing balance Imputation credit balance Imputation credits available for use in subsequent reporting periods are $35,175 (Dec 2013: $35,175, Jun 2014: $35,175). 5 Investments in related Group Companies The Company holds preference shares in Origin Energy Pacific Holdings Limited, a related Group Company. The rights attached to the preference shares are equal and opposite to the listed preference shares issued by the Company. The preference shares in Origin Energy Pacific Holdings Limited reflect the notional value of shares, being the maximum amount receivable on redemption in accordance with the terms of these preference shares. 10

12 Notes to the interim financial statements 6 Capital and reserves Ordinary Preference Share capital (number of shares) shares (i) shares (ii) On issue at 1 July 2014 and 31 December ,000, ,000,000 Ordinary Preference Share capital (number of shares) shares (i) shares (ii) On issue at 1 July 2013 and 31 December ,000, ,000,000 (i) All ordinary shares are owned by Origin Energy Universal Holdings Limited a related Group Company. The Company has issued 100 fully paid ordinary shares at a price of $1.00 and a further 10,000,000 ordinary shares at a price of $1.00 per share, partly paid at $0.67 per share. The holders of Ordinary Shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. No dividends were declared in relation to ordinary shares. (ii) The Preference Shares carry a dividend payable semi-annually in arrears. The Dividend Rate is reset each year on 15 October (or the next business day) based on the Benchmark Rate determined on the Dividend Reset Date plus the Margin of 1.50% per annum. Dividends are calculated by multiplying the Dividend Rate by the issue price of the Preference Shares. The dividends may consist of a combination of cash payments and imputation credits. If not cancelled, dividends are paid semi-annually on 15 October and 15 April of each year (or the next business day). The Preference Shares have no fixed term. The Preference Shares can be redeemed at the discretion of the Company (or purchased by Origin Energy Limited or a subsidiary of Origin Energy Limited) in certain circumstances. Details and the Terms of the Preference Shares are contained in the Investment Statement and Prospectus dated 30 August Dividends paid on the listed preference shares during the period were: - 15 October $3,240,000 (for the period 16/04/2014 to 15/10/2014) at $ per Preference Share Dividends paid on the listed preference shares for the year ended 30 June 2014 were: - 15 October $2,894,400 (for the period 16/04/2013 to 15/10/2013) at $ per Preference Share - 15 April $3,240,000 (for the period 16/10/2013 to 15/4/2014) at $ per Preference Share The Preference Shares rank after all creditors of, and in priority to ordinary shareholders of, the Company. The Preference Shares do not carry the right to vote except for the matters which change the terms of the Preference Shares or the Deed Poll. Funding for the Preference Shares issued to the public was raised in New Zealand's commercial and financial sector. 11

13 Notes to the interim financial statements 7 Financial instruments Exposures to credit, interest rate, and liquidity risks arise in the normal course of the Company's business. undertaken. No hedging is Credit risk Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Investments are allowed only in liquid securities and only with counterparties that have a credit rating equal to or better than the Company. Transactions involving derivative financial instruments are with counterparties with whom the Company has a signed netting agreement as well as sound credit ratings. Interest rate risk Interest rate risk arises where the Comapny is exposed to an adverse movement in interest rates. Any investments in variable rate debt securities and/or variable borrowings are exposed to a risk of change in cash flows due to changes in interest rates. Investments in equity securities and short term receivables and payables are not exposed to interest rate risk. Liquidity risk Liquidity risk represents the Company s ability to meet its contractual obligations. The Company evaluates its liquidity requirements on an ongoing basis. In general, the Company generates sufficient cash flows to meet its obligations arising from its financial liabilities. Interest rates repricing analysis In respect of income-earning financial assets, all items have no fixed repayment date and are therefore on demand. Total 6 months or less Cash and cash equivalents Balance as at 31 December Total 6 months or less Cash and cash equivalents Balance as at 31 December Audited as at 30 June 2014 Total 6 months Cash and cash equivalents or less Balance as at 30 June Sensitivity analysis In managing interest rate risks, the Company aims to reduce the impact of short-term fluctuations on the Company s earnings. At the reporting date there is no material exposure to interest rate risk. Capital management Unaudited as at 31 December 2014 Unaudited as at 31 December 2013 The Company s capital includes share capital, redeemable preference shares and retained earnings. The Company s policies in respect of capital management and allocation are reviewed regularly by the Board of Directors. 12

14 Notes to the interim financial statements 7 Financial instruments (continued) Fair values The fair values of financial assets and liabilities, together with the carrying amounts as shown in the statement of financial position, are as follows: 31 December 2014 Note Loans and receivables Total carrying amount Fair value Cash and cash equivalents Investments in related Group Company 5-200, , ,000 Total financial assets , , , December 2013 Note Loans and receivables Total carrying amount Fair value Cash and cash equivalents Investments in related Group Company 5-200, , ,000 Total financial assets , , , June 2014 Note Loans and receivables Availablefor-sale Availablefor-sale Availablefor-sale Total carrying amount Fair value Cash and cash equivalents Investments in related Group Company 5-200, , ,000 Total financial assets , , ,111 8 Commitments As at the reporting date the Company has no commitments (31 December 2013 and 30 June 2014: Nil). 9 Contingencies The Company has issued a bond in favour of NZX Limited ($75,000) to cover listing and other regulatory costs. As at the reporting date no other significant contingencies exist. 10 Segment reporting The Company operates as a single segment in the finance industry. All the dividend income is derived from one New Zealand entity in relation to held preference shares. 13

15 Notes to the interim financial statements 11 Reconciliation of the profit for the period with net cash from operating activities Unaudited Unaudited Audited 6 Months 6 Months 12 Months Ended Ended Ended 31 December 31 December 30 June Profit for the period 3,191 2,720 5,928 Increase in provisions Decrease in deferred tax asset Net cash inflows from operating activities 3,193 2,839 6, Related parties Identity of related parties The Company is a subsidiary company of Origin Energy Universal Holdings Limited (an entity incorporated in New Zealand). The ultimate parent company is Origin Energy Limited, domiciled in Australia. The Non-Executive Director received fees of $10,136 (31 December 2013: $11,488) from the Company during the period ended 31 December No other Director received any remuneration or other benefits from the Company during the period ended 31 December 2014 (31 December 2013: nil). Transactions between the Company and related parties are outlined below. All transactions are conducted on an armslength basis (except secretarial services, which are provided at no charge) and are settled in cash. No Guarantees are given or received. Related party Origin Energy Pacific Holdings Limited Origin Energy Universal Holdings Limited Origin Energy New Zealand Limited Relationship Common parent company Parent company Parent company of Origin Energy Universal Holdings Limited Service provided/received Preference shares issued by Origin Energy Pacific Holdings Limited to the Company. Origin Energy Universal Holdings Limited holds ordinary shares in the Company. Origin Energy New Zealand limited pays audit fees (for audit of financial statements) on behalf of the Company. 13 Subsequent events On 27 February 2015, the Board approved for the Company to make a call-up of $0.02 per share to Origin Energy Universal Holdings Limited (ordinary shareholder), to be paid on the 27 March Following the call-up, the ordinary shares will be partly paid at $0.69 per share. 14