High energy prices help Origin swing back to profit

The news: Australia’s top energy retailer and gas producer Origin Energy has returned to a full-year profit on the back of higher realisations from its gas and electricity businesses.

The numbers: The company reported a statutory profit of $1.1 billion for the year to 30 June, compared to a $1.4 billion loss a year ago. Underlying profit jumped 83% to $747 million, ahead of analyst expectations. Origin declared a final dividend of 20 cents a share, up from 16.5 cents a year ago.

The context: Origin had already upgraded its guidance twice in four months as a global energy crunch underpinned strong growth in prices for its gas and electricity. The company, which is the subject of a $19 billion takeover by Canada’s Brookfield and US-based EIG, expects further earnings growth in FY24 as energy prices remain high, before gains moderate in 2025.

What they said: “The strong operational performance underscores the value of Origin’s strategic positioning in the energy transition, with an advantaged portfolio of assets and growth options. Origin remains well positioned to capture value for shareholders and deliver benefits to our customers and communities,” Origin Energy CEO Frank Calabria said.