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Origin Energy has reported a net profit of $1.06 billion for FY23 as one of the largest suppliers to the east coast domestic gas market.
“Operational performance right across Origin was strong this year, with higher earnings contributions from Energy Markets, Integrated Gas and Octopus Energy in the UK,” CEO Frank Calabria said on Thursday
“Australia Pacific LNG delivered record revenue and cash distributions to Origin as it benefited from elevated commodity prices, while continuing to meet the gas needs of export customers,” he said.
The profit for the full year ended June 30 compared to a loss of $1.43 billion a year ago on impairment charges.
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA), a measure of core company profitability, surged to $3.12 billion from $2.11 billion.
Underlying profit increased to $747 million, $340 million more than the prior year, on higher commodity prices.
Electricity earnings rose as higher wholesale costs from previous periods were recovered through higher electricity tariffs and coal supply costs declined following the introduction of the coal price cap.
Mr Calabria said Origin had significantly increased support for customers, recognising cost of living pressures across the economy.
Origin is targeting $45 million to support customers in hardship this year, up from $30 million spent helping customers who needed support in the past year.
As at year end, Origin was Australia’s leading energy retailer with a total customer base of more than 4.5 million accounts.
The outlook for FY24 is for further growth in Energy Markets underlying EBITDA, with Australia Pacific LNG production expected to rebound and cash flow remaining strong, while electricity profits will fall in FY25.
The proposed acquisition of Origin by Brookfield Asset Management and MidOcean Energy is expected to be completed early in the 2024 calendar year.
Origin expects higher energy markets underlying EBITDA in FY24 of $1.3 billion to $1.7 billion, excluding Octopus Energy and Australia Pacific LNG production of 680 to 710 petajoules.
Electricity gross profit is expected to rise, reflecting higher tariffs and an increased contribution from Australia’s largest coal-fired power plant Eraring and gas peakers while gas gross profit is expected to moderate.
Origin declared a fully franked final dividend of 20 cents per share, bringing total dividends for FY23 to 36.5 cents per share.
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