Cost of living sparks power provider’s profit fall
Australia’s largest electricity and gas retail business recorded a 45 per cent drop in profits, but the group still regards this as a solid result.
Origin Energy’s net profit for the half year ended December 31 fell to $557 million after revenue rose nine per cent to $8 billion.
The underlying result, which excludes one-off items, also fell to $593 million, from $924 million in the previous half.
“Origin’s first half results are solid,” CEO Frank Calabria said Thursday.
“We have delivered more than 10 consecutive halvings in customer growth, further strengthening Origin’s leading retail position, reflecting the strength of our brand and customer solutions, including a revamped suite of battery products.”
The lower profits came after underlying earnings in Origin’s gas business fell, although this was partly offset by an improvement in its energy markets division.
But Mr Calabria acknowledged many of Origin’s energy customers still face cost-of-living pressure and bills remain high.
“Good power plant reliability and strong contributions from renewables and batteries have helped lower wholesale electricity prices,” he said.
“Other factors will determine the final bill outcome for our customers, particularly network costs, but any reduction in various components of the bill will help.”
Origin also raised its full-year earnings forecast and now expects earnings before interest, tax, depreciation and amortization to be between $1.55 billion and $1.75 billion.
Earnings were previously estimated to be between $1.4 billion and $1.7 billion.
Origin announced a first-half dividend of 30 cents per share, unchanged from last year.
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