Origin Energy beat profit estimates last fiscal year, as its gas segment’s earnings growth offset a decline in energy.
Statutory profit was A$1.48 billion, up from $1.40 billion year-over-year. Underlying profit grew from $1.18 billion to $1.49 billion, beating Visible Alpha estimates of $1.46 billion.
“Origin’s FY25 financial and operational performance underscores the strength of our portfolio, as forecast lower earnings from Energy Markets and Octopus Energy were balanced by higher earnings from Integrated Gas related to Origin LNG trading,” wrote Origin chair Scott Perkins and CEO Frank Calabria.
“Looking ahead, as Australia’s energy transition continues to accelerate, we believe we are well-positioned to navigate its challenges and seize emerging opportunities, for Origin, our customers and our shareholders.”
Underlying EBITDA was $3.41 billion, down from $3.53 billion one year ago. The company credited this to its lower earnings in Energy Markets and Octopus Energy.
Origin had 4,695,000 Energy Markets customer accounts at the end of the fiscal year, rising by 104,000. Energy Markets EBITDA dropped by $251 million to $1.40 billion.
Its Integrated Gas segment’s EBITDA rose by $251 million to $2.20 billion. Australia Pacific LNG distribution fell to $797 million, compared with $1.38 billion one year ago.
Octopus Energy’s United Kingdom customers increased by 13% to 7.6 million, though its EBITDA was a loss of $88 million. Origin holds a 23% stake in Octopus.
Its adjusted free cash flow also declined from $1.30 billion to $1.21 billion, driven largely by lower Australia Pacific LNG distribution.
Origin has declared a fully franked final dividend of $0.30, up from $0.275 in fiscal 2024. The company projects underlying Energy Markets EBITDA of $1.40-1.70 billion for fiscal 2026.
Origin’s (ASX: ORG) share price was A$12.44 at time of writing, up from its previous close at $11.84. Its market capitalisation is $21.39 billion.
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