Origin Energy (ASX:ORG) - Chief Executive Officer, Frank Calabria
Chief Executive Officer, Frank Calabria
Source: Origin Energy
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  • Origin Energy (ORG) suffers a $2.3 billion loss over the 2021 financial year in the face of sullen energy prices and a substantial deferred tax liability
  • Origin Chief Executive Officer Frank Calabria describes the year as “challenging” and says energy market headwinds are likely to continue
  • The loss is largely driven by a $669 million deferred tax liability from Origin’s investment in Australia Pacific LNG
  • Origin will still dish out a final unfranked 7.5 cents dividend
  • Origin Energy shares are down 4.12 per cent and ended the day trading at $4.19

Origin Energy (ORG) suffered a $2.3 billion loss over the 2021 financial year in the face of sullen energy prices and a substantial deferred tax liability.

Origin Chief Executive Officer Frank Calabria said 2021 brought challenging operating conditions for the Australian energy provider, with its key commodities hampered by lower energy, gas and oil prices.

Losses were further deepened by the recognition of a $669 million deferred tax liability from Origin’s investment in Australia Pacific LNG. The company is held in a joint venture between Origin, ConocoPhillips and Sinopec.

Origin said there was a remaining unrecognised deferred tax liability of $810 million “which may be partly or fully recognised in the future.”

Excluding this and other one-off payments and liabilities, Origin recorded an underlying profit of $318 million.

Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Energy Markets was $991 million, down 32 per cent on the prior year while Integrated Gas Underlying EBITDA was around $1.13 billion, a 35 per cent reduction on the prior year.

Despite the tumultuous period, Origin will still pay a final unfranked 7.5 cents dividend to take its total for the fiscal year to 20 cents.

CEO Mr Calabria said energy market headwinds would continue into FY22 but said it should be offset by its integrated gas business.

“Our immediate focus is on capital discipline and cost management to continue to build balance sheet resilience, with a rebound in Energy Markets earnings expected in FY23 assuming current forward commodity prices continue and flow through to tariffs,” he said.

“To address lower earnings in the near-term, we are focused on continued capital discipline and achieving the targeted $100 to $150 million in retail cost savings by FY2024, over and above the previous cost out target of $100 million achieved this year.”

Origin Energy shares were down 4.12 per cent at market close to trade at $4.19.

ORG by the numbers
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