Origin shares boosted 4.3% on stronger profits
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More news: Origin Energy shares had lifted 4.3% at 3:31pm AEST, reaching $12.34 the utilities company reported a $1.49 million increase in underlying net profit to $1.49 billion.
The rally came despite weakness in underlying EBITDA, which fell to $3.41 billion in FY25 from $353 billion in FY 2024, as the company continued to be squeezed by slimmer retail customer margins and higher coal costs.
Origin has executed on the early stages of its battery storage transition, bringing two new batteries online to date funded on its balance sheet, and steady performance in its LNG business during the financial.
On the earnings call, several questions were asked of CEO Frank Calabria about Origin's speculated plans to divest Kraken, the customer software platform housed within the UK's Octopus Energy, in which it has a 23% shareholding.
Calabria largely played down news reports that suggested Origin would imminently look to separate Kraken from the Octopus business, indicating that a structural separation and a shareholder vote would need to occur before any transaction were launched.
Origin Energy posts 6% rise in full-year profit, lifts dividend
The news: Origin Energy has delivered a 6% increase in full-year net profit after tax to $1.481 billion and hiked its final dividend by 9.1% to 30 cents per share.
Net profit after tax was up from $1.397 billion reported last year, on higher income from LNG trading, which offset lower income from its shareholding in Octopus Energy and gas and electricity market trading activities.
But the statutory profit figure was below consensus estimates of $1.548 billion, according to Visible Alpha data.
Origin's final dividend was up to 30 cents per share from 27.5c last year, and in line with market forecasts.
Underlying EBITDA fell 18% to $1.40 billion, due to lower gross profits from gas and electricity sales, and energy markets trading, although this was partially offset by a stronger contribution from LNG trading.
The context: Origin's media release cited higher coal costs and lower retail price tariffs for a 15.6% decline in electricity profits over the full year.
Natural gas profits also took a hit, as fewer petajoules were transacted on lower wholesale prices, pushing profits to $593 million.
Despite the tougher market conditions, Origin added 104,000 new retail accounts and grew new internet customers by 44%.
Origin did not provide earnings guidance for the business as a whole for FY 2026, but did predict that underlying EBITDA would fall in the range of 1.4 billion -1.7 billion for the energy markets divison.
The source: ASX
