Robert Stephens September 22, More on: This is bad news for Origin Energy Ltd ASX: ORG due to its exposure to LNG via the LNG prices The major challenge facing the LNG market is an imbalance between demand and supply.

In my opinion, this will worsen for a number of years.

For example, the amount of LNG shipped in the first eight months of…. Enter your email below for FREE access to this article and all the content on the site. Also receive Take Stock, The Motley Fool's unique daily email on what's really happening with the share market.

Origin Energy Limited (ORG) - Australian Stock Market - InvestSMART

You may unsubscribe any time. By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about other products and services we think might interest you. Please read our Financial Services Guide FSG for more information. The major challenge facing the LNG market is an imbalance between demand and supply. For example, the amount of LNG shipped in the first eight months of was million tonnes.

This compares with However, the supply of LNG over the next four years is forecast to rise from million tonnes per year to million tonnes per year. The reason for the rapid increase in supply is a number of new projects coming onstream, particularly in the US and Australia as lower costs have spurred the development of LNG assets.

This situation would hurt the financial performance of Origin Energy as well as other LNG-focused stocks such as Woodside Petroleum Limited ASX: WPL and Oil Search Limited ASX: Its balance sheet is highly leveraged and this increases its risk profile in my opinion.

Why I bought Origin Energy Ltd last week | Motley Fool Australia

The status of Origin as a price taker means that the downbeat outlook for LNG prices could hurt its financial performance. It has an overly leveraged balance sheet in my view which increases its risk profile. Therefore, I believe that it is a stock to avoid. Learn more about this man and how you can start down the path toward financial independence.

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Motley Fool contributor Robert Stephens has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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The Australian - ORG Profile

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