The Origin Energy Ltd (ASX: ORG) share price is in focus today after the company delivered a statutory profit of $1,481 million for FY25, up from $1,397 million last year, with underlying profit also rising to $1,490 million.
What did Origin Energy report?
- Statutory profit: $1,481 million, up from $1,397 million in FY24
- Underlying profit: $1,490 million, up $307 million
- Underlying EBITDA: $3,411 million, down from $3,528 million
- Final dividend: 30 cents per share, fully franked (total FY25 dividend 60 cps)
- Adjusted net debt/EBITDA: 1.9x, up from 1.0x
- Return on capital employed (ROCE): 14.6%
What else happened in FY25?
Origin's Integrated Gas division saw earnings growth from LNG trading, even as overall production declined by 2% to 682 petajoules. The Energy Markets business delivered an EBITDA ahead of guidance despite a 13.6% drop in electricity and gas gross profit, supported by retail customer growth of 104,000 accounts and reduced cost to serve.
Origin continued to expand in renewables and battery storage, advancing key projects like the Eraring and Mortlake batteries and securing access for the Yanco Delta wind farm. The company also acquired SolarQuotes to boost its home electrification offerings, and its Loop Virtual Power Plant grew to cover 393,000 customer assets.
What did Origin Energy management say?
Commenting on the result, CEO Frank Calabria said:
Origin's financial and operational performance in FY25 underscores the strength of our portfolio, as forecast lower earnings from Energy Markets and Octopus Energy were balanced by higher earnings from Integrated Gas relating to LNG trading. Good cash flow generation and the strength of the balance sheet enabled higher returns for shareholders and significant capital to be reinvested into the business.
What's next for Origin Energy?
Origin is guiding for stable to moderately improving earnings in FY26, with Energy Markets EBITDA expected between $1,400 million and $1,700 million and further cost reductions planned. The company expects Australia Pacific LNG volumes between 635 and 680 PJ and is investing $800 million to $1.1 billion in batteries and generation.
Origin will keep focusing on growing renewables, customer solutions, and reliable energy supply as it pursues its goal of net zero by 2050. Earnings from Octopus Energy are expected to improve as UK Retail and Kraken Technologies become more profitable.
Origin Energy share price snapshot
The Origin Energy share price has trailed the S&P/ASX 200 Index (ASX: XJO) over the past year, rising 12% compared to 13% for the ASX 200 Index.
