Power giant Origin Energy has posted a surge in full-year profit as households struggle to pay bigger electricity and gas bills.
Origin, one of the largest suppliers to the east coast domestic gas market, on Thursday reported a net profit of $1.397 billion for the year to June 30, up from $1.055 billion a year earlier.
Chief executive Frank Calabria said the balance sheet remains strong, with good cash generation supporting an increase in returns to shareholders and enabling capital to be reinvested into renewables and energy storage.
Origin forecast higher electricity demand on electrification, uptake of electric vehicles and the expansion of data centres.
Business and industrial arm Origin Zero more than doubled the number of customers wanting more than electricity or gas, selling them EV packages, digital insights and demand management.
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA), a measure of core company profitability, rose to $3.528 billion, from $3.107 billion.
The underlying profit increased to $1.183 billion, $436 million higher than the prior year, on higher earnings in the Energy Markets and Integrated Gas divisions.
“We are acutely aware of the pressure on household budgets at this time given the rising cost of living,” Mr Calabria said
He said Origin was supporting its most vulnerable customers with $100 million committed this year and next, including a freeze on tariffs for these accounts.
“An important factor in helping to keep downward pressure on prices is ensuring reliable energy, and it is pleasing to see how well our generation fleet performed,” he said.
Output from the ageing Eraring coal-fired power station, set to keep running until August 2027 under a deal struck with the NSW government, rose by 2.1 terawatt hours to 14.3 TWh.
Origin’s virtual power plant Loop expanded by 70 per cent to 1.4 gigawatts, under a plan to grow connected household solar and other energy equipment to 2GW by 2026.
Australia Pacific LNG production increased three per cent to 694 petajoules, with 150PJ sold into the domestic market in the 2023/24 financial year.
Higher earnings swelled free cash flow to $1.296 billion, from $965 million in the previous financial year, partly to cover the cost of the country’s transition off fossil fuels.
The earnings outlook was weaker for the 2024/25 financial year with electricity profit expected to decrease as tariffs ease, and on higher coal costs.
The energy giant declared a fully franked final dividend of 27.5 cents, up from 20 cents a year earlier.