Origin Energy Ltd
ASX:ORG

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Origin Energy Ltd Logo
Origin Energy Ltd
ASX:ORG
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Price: 11.66 AUD 1.04%
Market Cap: 20.1B AUD

Origin Energy Ltd
Investor Relations

Origin Energy Ltd, a major player in Australia's energy sector, weaves its narrative through a diverse and integrated portfolio. Born from the spinoff of the energy assets of Boral Limited in the year 2000, Origin quickly established itself as a leading force in both electricity and natural gas markets. Its operations are grounded in three core segments: Energy Markets, Integrated Gas, and Future Energy. Within the Energy Markets, Origin functions as a retail and wholesale supplier, catering to millions of customers across the country. The company capitalizes on its significant generation assets, ranging from gas-fired power stations to large-scale renewables, ensuring a balanced supply mix that contributes to its robust revenue stream.

The company's Integrated Gas division is anchored by its substantial share in the Australia Pacific LNG (APLNG) project, one of the largest producers of liquefied natural gas (LNG) in Asia-Pacific. Through APLNG, Origin plays an instrumental role in harnessing natural gas from coal seams and exporting LNG to meet the burgeoning energy demands of Asian markets. This not only bolsters their international presence but also diversifies income sources beyond domestic borders. Additionally, Origin has made strategic investments in Future Energy, exploring new technologies and sustainable solutions like battery storage and green hydrogen. This forward-looking approach positions Origin not only as a provider of conventional energy but as a pioneer in the transition towards a low-carbon future, continuously adapting its business model to align with global sustainability trends.

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Last Earnings Call
Fiscal Period
Q4 2023
Call Date
Aug 16, 2023
AI Summary
Q4 2023

Strong Earnings Rebound: Origin reported a statutory profit of just over $1 billion, a turnaround from a loss last year, driven by robust results across Energy Markets, Integrated Gas, and Octopus Energy.

Energy Markets Recovery: Energy Markets earnings showed significant improvement after a period of under-recovery, and management expects further earnings growth in FY24, with guidance raised above prior expectations.

Octopus Energy Surge: Octopus Energy delivered a step change, with Origin’s share of EBITDA at $240 million versus a loss of $36 million last year, though FY24 contribution is expected to be lower amid UK retail competition.

Record APLNG Distributions: APLNG generated record distributions of $1.78 billion to Origin, even with reduced equity, benefiting from high commodity prices.

Cash Flow Impacted by Working Capital: Despite earnings growth, adjusted free cash flow declined due to higher working capital needs and the unwind of prior period benefits, with improved cash conversion anticipated in FY24.

Dividend Boost: A fully franked final dividend of $0.20 per share was declared, bringing the full-year dividend to $0.365 per share and reflecting confidence in the outlook.

Energy Transition Focus: The company highlighted progress in renewables, storage, and the energy transition, including large-scale investments and developments in hydrogen and virtual power plant technologies.

Takeover Progressing: The proposed acquisition by Brookfield and MidOcean is advancing through regulatory processes, though timing depends on ACCC and FIRB approvals.

Key Financials
Statutory Profit
just over $1 billion
Underlying Profit
$747 million
Octopus Energy EBITDA (Origin share)
$240 million
Octopus Energy Net Profit (Origin share)
$139 million
Energy Markets EBITDA
$637 million higher
APLNG Distributions (to Origin)
$1.78 billion
Adjusted Net Debt
flat
Debt-to-EBITDA Ratio
1.2x
Adjusted Free Cash Flow
down
Final Dividend Per Share
$0.20
Full Year Dividend Per Share
$0.365
Dividend Payout Ratio
66%
Return on Capital Employed
14.2%
Virtual Power Plant Capacity
815 megawatts
Number of Customer Accounts on Kraken Platform
32 million contracted
Octopus Energy Customer Accounts
9.7 million
APLNG Production Guidance
680–710 petajoules (FY24)
Integrated Gas Unit CapEx and OpEx Guidance
$3.90–$4.40 per gigajoule (FY24)
Customer Churn
below market
Earnings Call Recording
Other Earnings Calls

Management

Mr. Frank G. Calabria BEc, FCA, FFin, GradDip, MBA
MD, CEO & Executive Director
No Bio Available
Mr. Greg Jarvis
Executive General Manager of Energy Supply & Operations
No Bio Available
Mr. Jon Briskin
Executive General Manager of Retail
No Bio Available
Mr. Andrew Thornton
Executive General Manager of Integrated Gas
No Bio Available
Mr. Anthony Lucas
Chief Financial Officer
No Bio Available
Lindsay Donnelly
Group Manager of Investor Relations
No Bio Available
Ms. Kate Jordan
General Counsel and Executive GM of Company Secretariat, Risk & Governance
No Bio Available
Ms. Sharon Ridgway
Executive General Manager of People & Culture
No Bio Available
Mr. Peter W. Rice
General Manager of Capital Markets
No Bio Available
Ms. Helen Hardy
Company Secretary
No Bio Available

Contacts

Address
NEW SOUTH WALES
Sydney
20Th Flr Norwich House 610 Oconnell St
Contacts