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Origin Energy to recognize impairment charges of $533M for first half of 2018

Origin Energy Ltd. expects to recognize after-tax impairment charges of $533 million for the first half of 2018.

The oil and gas company said it will record a charge of $360 million post-tax for the Ironbark gas field because of a downgrade in reserves and a revised development plan. The carrying value of the field development is expected to be $279 million after the impairment.

The company also expects to record a noncash impairment charge of $173 million after tax as it will recognize Lattice Energy's earnings for the period from July 1, 2017, to Jan. 31, 2018. Origin Energy completed the sale of Lattice Energy to Beach Energy Ltd with an economic effective date of July 1, 2017.

Origin Energy said the aggregate charge of $533 million is a noncash item and will have no impact on its underlying EBITDA for 2018.