Origin to sell Darling Downs Pipeline Network for $392M

Company News

by Jessica Amir

Origin Energy (ASX:ORG) has entered into an agreement to sell its Darling Downs Pipeline Network in Queensland for $392 million.

The electricity and gas company says the sale lifts its asset divestment to $1 billion since it announced its divestment program in September 2015.

The assets divestment also exceeded its original $800 million target.

Origin Energy says the sale to Jemena Gas Pipelines Holdings Pty Ltd, is due to be completed by 30 June 2017 and represents a 16.9 times FY2018 EBITDA multiple.

As a result, the company says it’s on track to achieve adjusted net debt of well below $9 billion by 30 June 2017.

Shares in Origin Energy (ASX:ORG) opened 1.29% lower to $7.63.
 

Jessica Amir

Finance News Network
Jessica is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.