Oz Origin Energy Returns to Profit

Australian energy retailer and gas and LNG producer Origin Energy returned to the black in fiscal 2017-2018 (July-June) with a full-year profit of A$218 million ($158mn), up from a loss of A$2.21 billion in the year prior, the company said August 16.

“We had a strong performance across the board this year, with earnings growth in both Integrated Gas and Energy Markets driving increases in Underlying EPITDA and Underlying Profit,” Origin CEO Frank Calabria said.

“After a period of significant capital investment, Integrated Gas is making a material contribution to Origin, driven by a full year of operations from both LNG trains at Australia Pacific LNG and higher commodity prices. This year Australia Pacific LNG also hit the milestone of delivering net cash flows back to Origin of [A]$363mn,” he said.

Origin’s underlying EBITDA was A$2.95bn in the fiscal year, up from A$2.17bm the year prior. Its Integrated Gas business accounted for A$1.25bn of the total, up from A$747mn, and Energy Markets brought in A$1.81bn, up from A$1.49bn. It saw loss of A$115mn in its corporate segment compared to a loss of A$66mn a year earlier, it said.

Origin said it expects its profit to be higher in the current fiscal with its underlying EBITDA pegged at A$1.5bn-A$1.6bn.

The Australia Pacific LNG project on Australia’s east coast is part of Origin’s Integrated Gas business.