Origin profits jump 30% on back of LNG, oil prices

Origin Energy logo on side of corporate headquarters (profit)
Image: Shutterstock

Origin Energy has posted a 30 per cent jump in annual underlying profits, boosted by higher prices for liquefied natural gas (LNG) and oil, but warned of uncertainty around fiscal 2023 earnings, Reuters reports.

Curtailed supply from Russia following Western sanctions after the country’s invasion of Ukraine amid strong demand for electricity generation have pushed LNG prices to record levels in recent times. 

Related article: Beach Energy revenue up despite lower production

That boosted Australia’s second-largest power producer’s underlying profits to $407 million for the full-year ended June 30, from $314 million a year ago.

The company’s profits, however, missed Refinitiv IBES estimates of $537.5 million, weighed down by lower earnings in its energy markets unit.

Origin, which in June withdrew its fiscal 2023 earnings guidance citing a coal supply crunch for its Eraring power station, said there was uncertainty around the range of potential earnings outcomes for fiscal 2023.

Related article: Senex embarks on $1b Australian gas expansion

“Underlying earnings are expected to be higher, driven by growth in earnings from the gas business, while electricity gross profit is expected to remain suppressed. Risk of coal under-delivery remains,” it said in a statement

Origin declared a final dividend of 16.5 Australian cents per share, compared with 7.5 cents a year earlier and analysts’ consensus of 15.2 cents.

Previous articleRisk of electrocution from EVs reduced with new tech
Next articleAustralia may be heading for emissions trading between big polluters