Why is the Origin (ASX:ORG) share price tanking today? // The Motley Fool Australia

The Origin Energy Ltd (ASX: ORG) share price is down by 7.06% to $4.61 at the time of writing.

The downward spiral was set off by the release of Origin’s revised operating conditions and guidance for FY2021.

Here’s a few things we learned from the announcement.

Origin expects gross profits to be down

Origin expects FY2021 electricity gross profit to be down $250–290 million year-over-year. The previous guidance predicted a $170–220 million reduction.

The company puts this loss to lower wholesale prices, payment of a non-recoverable $40 million increase in network costs and the impact of mild summer conditions.

The natural gas gross profit is also expected to be down $200–250 million year-over-year. This has been raised…