Origin Energy Reports $3.4B EBITDA, Declares 60c Dividend for FY25

FY25 Financial Highlights

Origin Energy has released its FY25 results, reporting an underlying EBITDA of $3.411 billion, a slight decrease from $3.528 billion in FY24. The Energy Markets segment delivered $1.404 billion in EBITDA, surpassing guidance thanks to strong operational performance and cost savings initiatives. Meanwhile, the integrated gas business, including Origin’s 27.5% share in Australia Pacific LNG (APLNG), remained steady with production and cost metrics in line with expectations.

LNG trading was a standout performer, generating $441 million in EBITDA, near the top end of guidance, reflecting favourable market conditions and effective portfolio management. Octopus Energy, Origin’s UK-based retail and technology investment, experienced rapid customer growth but reported an EBITDA loss of $88 million, impacted by investments to scale operations, unseasonably warm weather, and one-off adjustments.

Operational and Strategic Progress

Origin grew its customer base by 104,000 accounts and achieved a $50 million reduction in cost to serve, progressing towards a medium-term target of $100–$150 million savings by FY26 compared to FY24. The company’s renewable energy initiatives advanced with secured access rights for the 1.5 GW Yanco Delta Wind Farm and ongoing development of a 1.7 GW battery storage program, with over $1.1 billion invested to date.

APLNG’s production stood at 682 PJ with a cost of supply of $4.2/GJ, consistent with guidance. The company concluded a price review with Sinopec for its long-term LNG contract, resulting in a reduced price slope effective from January 2025, with a final review scheduled for 2030 at APLNG’s discretion.

Octopus Energy and Kraken Technologies Growth

Octopus Energy expanded its UK customer base by 13% to 7.6 million and doubled non-UK accounts to 2.7 million. Kraken Technologies, the global energy software platform, increased contracted customers by 45% to 74 million. Despite the EBITDA loss, these businesses represent significant growth potential for Origin, with Octopus targeting profitability improvements and Kraken aiming for over £500 million in annual recurring revenue by 2027.

Dividend and Balance Sheet Strength

Reflecting strong cash flow and a robust balance sheet, Origin declared a fully franked final dividend of 30 cents per share, bringing the total dividend for FY25 to 60 cents, up from 55 cents in FY24. The company’s adjusted net debt to EBITDA ratio rose to 1.9x, primarily due to investments in growth projects, but remains within the target range. Origin expects to maintain this ratio over FY26-27, balancing shareholder returns with continued capital expenditure on renewables and technology.

Outlook and FY26 Guidance

For FY26, Origin anticipates Energy Markets EBITDA between $1.4 billion and $1.7 billion, supported by battery investments and further cost reductions. APLNG production is forecast to slightly decline to 635–680 PJ with higher capital and operating expenditures reflecting ongoing optimisation and exploration activities. LNG trading EBITDA is expected to moderate to $100–$150 million due to lower hedging coverage.

Octopus Energy’s EBITDA guidance ranges from $0 to $150 million, reflecting continued growth in the UK and investments in scaling non-UK retail and energy services. Origin remains committed to its energy transition strategy, investing heavily in renewables, battery storage, and digital innovation, including AI-driven customer interactions.