Origin's annual underlying profit up 30%
Australia’s Origin Energy on August 18 reported a 30% year/year increase in underlying profit during the year to June 30 (FY2022) thanks to higher oil and LNG prices.
The underlying profit, which excludes one-off items, in FY2022 came in at A$407mn ($282.3mn) compared with A$314mn a year ago. On a statutory basis, Origin has announced a loss of A$1.43bn, reflecting a A$2.21bn non-cash impairment.
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"A A$4.354bn uplift of in-the-money energy markets derivative assets associated with the hedging of high wholesale electricity and gas prices resulted in the requirement to recognise the non-cash impairment of goodwill," it said.
Origin benefitted from a record cash distribution from Australia Pacific LNG of A$1.6bn, due to higher realised oil and spot LNG prices. This distribution contributed to a strong free cash flow position of A$1.06bn, the company said.
Origin warned that there remains uncertainty around the range of potential earnings outcomes for FY2023.
“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,” it said. “Risk of coal underdelivery remains, including due to rail and mine performance.”
The company in June withdrew all guidance for FY2023 due to uncertainties in the global and Australian energy markets.