Origin Energy Limited (Origin) today released the following financial ratios which have been calculated as at 31 December 2011 (Testing Date) in accordance with the requirements set out in the Origin Energy Subordinated Notes Prospectus dated 1 December 2011 (Prospectus). Words which are defined in the Prospectus have the same meaning when used in this document.

As set out in the Prospectus, the Leverage Ratio and Interest Cover Ratio will be tested every six months to determine whether or not a Mandatory Deferral Event exists. As at 31 December 2011, no Mandatory Deferral Event had commenced.

A Mandatory Deferral Event will commence if Origin's Interest Cover Ratio in relation to a Testing Date is less than the Minimum Level (being 3.5 times), or if Origin's Leverage Ratio in relation to two consecutive Testing Dates is above the Maximum Level (being 4.0 times). A Mandatory Deferral Event will continue until Origin's Interest Cover Ratio in relation to a Testing Date is above the Minimum Level and its Leverage Ratio has not been above the Maximum Level in relation to two consecutive Testing Dates.

Interest Cover Ratio (Underlying EBITDA/Net Interest Paid)

The Interest Cover Ratio is calculated as Underlying EBITDA for the relevant six month period divided by Net Interest Paid for the relevant six month period.

Origin's Statutory EBITDA contains a number of items that do not portray the operational performance of the business, several items of which are significant non-cash expenses. Underlying EBITDA excludes the impact of these items to better illustrate the performance of Origin's business.

The table below shows the Interest Cover Ratio for each of the six months ended 30 June 2011 and 31 December 2011.

Interest Cover Ratio:

30 June 2011
($m) 31 Dec 2011
($m) Underlying EBITDA 964 1,157 Interest paid 188 197 Interest received (20) (23) Net Interest Paid 168 174 Interest Cover Ratio (times) 5.7 6.6 Minimum Ratio (times) >3.5 >3.5

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