Origin Energy's FY24 Performance Overview

Origin Energy Limited (ASX: $ORG) reported a significant increase in operational and financial performance for the full year ended 30 June 2024. The company's statutory profit surged to $1,397 million, marking a substantial rise from $1,055 million in the previous year. Underlying profit also experienced a notable increase, reaching $1,183 million, which is $436 million higher than the prior year. The uplift in earnings was primarily driven by improved performance in the Energy Markets and Integrated Gas businesses, leading to a rise in underlying EBITDA to $3,528 million from $3,107 million in the prior year.

Executive Commentary on FY24 Performance and Outlook

Origin CEO Frank Calabria expressed satisfaction with the company's operational and financial performance, emphasizing the benefits of its diverse portfolio. He highlighted the higher earnings from Energy Markets and LNG trading, which more than offset the lower earnings from Australia Pacific LNG and Octopus Energy. Calabria also underscored Origin's strong balance sheet, emphasizing the company's commitment to increasing returns to shareholders and reinvesting capital into renewables and storage to accelerate the execution of their strategy. Additionally, he acknowledged the rising cost of living and the company's focus on supporting vulnerable customers by committing $100 million across FY24 and FY25, including freezing tariffs for these customers.

Summary of FY24 Performance and Outlook

Origin Energy's FY24 performance showcased a robust financial position, with a fully franked final dividend of 27.5 cents per share declared by the Board. The company's operational highlights included a significant increase in output from the Eraring Power Station and the growth of customer accounts in the retail segment. Furthermore, the company's strategic investments in renewables and storage, along with its access to global growth through Octopus Energy, position it advantageously for the energy transition. Looking ahead, Origin anticipates lower Energy Markets EBITDA in FY25, with a focus on delivering value for customers, communities, and shareholders amidst evolving market conditions.