Origin expects jump in FY2023 earnings
Australian gas and power supplier Origin Energy on October 19 said it expects an increase in energy markets earnings for the financial year 2023 on the back of higher gas prices.
Origin earlier this year withdrew all guidance for the year to June 2023 due to uncertainties in the global and Australian energy markets.
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Origin now expects underlying earnings before interest, taxes, depreciation, and amortisation (EBIDTA) for its energy markets division between A$500mn ($315.65mn) and A$650mn in the financial year 2023, compared with A$365mn a year earlier.
“The improvement in energy markets underlying EBITDA compared to the prior year is driven by an expected increase in natural gas gross profit. Electricity gross profit is expected to remain suppressed reflecting higher energy costs only partially priced into regulated tariffs,” it said.
The company also said that production from the Australia Pacific LNG project would likely be at the lower end of the 680 petajoules (PJ) to 710 PJ range, due to unfavourable weather. The continued impact of unseasonal wet weather and a forecast third La Niña is likely to result in production towards the lower end of the range, it said.
In the 2024 financial year, Origin anticipates further growth in energy markets underlying EBITDA.