Origin Energy Powers Ahead with $1.7B Battery Investment and Net Zero Goals

• Statutory profit rises to $1.48 billion with fully franked dividends up to 60 cents per share
• Progress on $1.7 billion battery investments and 1.46 GW Yanco Delta Wind Farm transmission rights
• Second Climate Transition Action Plan targets 40% emissions reduction by 2030 and net zero by 2050
• Octopus Energy customer base grows to 7.6 million UK accounts, though Origin’s share posts a loss
• FY26 guidance maintained with Energy Markets EBITDA forecast between $1.4 and $1.7 billion

Strong Financial and Operational Performance

Origin Energy’s 2025 Annual General Meeting revealed a year of solid financial and operational achievements. The company posted a statutory profit of $1.48 billion, up from $1.40 billion the previous year, supported by a diverse portfolio spanning gas, renewables, and retail. Fully franked dividends rose to 60 cents per share, reflecting confidence in cash flow and shareholder returns. Origin’s share price performance over the past three years places it in the top quartile of the ASX50, underscoring investor approval of its strategy.

Accelerating the Energy Transition

Central to Origin’s narrative is its commitment to lead Australia’s energy transition. The company has invested approximately $1.7 billion in large-scale battery projects, including progressing construction on the Eraring and Mortlake batteries. Securing transmission access rights for the 1.46 GW Yanco Delta Wind Farm marks a significant step in expanding its renewable footprint. Origin’s Virtual Power Plant now connects over 393,000 services, leveraging technology to unlock value for customers and grid stability.

Climate Transition Action Plan and Emissions Targets

Origin presented its second Climate Transition Action Plan (CTAP), reaffirming its ambition to achieve net zero emissions by 2050 and a 40% reduction in emissions intensity by 2030 against a 2019 baseline. The plan includes progressive exit from upstream gas exploration in key basins and continued development of cleaner energy solutions. The board strongly recommends shareholder support, emphasizing a pragmatic yet ambitious approach to decarbonisation that balances reliability and affordability.

Retail Growth and Octopus Energy Update

Origin’s retail business showed strong organic growth, supported by technology platforms like Kraken Technologies, which underpin customer experience improvements and cost reductions of $50 million. Octopus Energy, in which Origin holds a 22.7% stake, expanded its UK customer base to 7.6 million and nearly doubled international accounts. However, Origin’s share of Octopus Energy’s underlying EBITDA reflected a loss of $88 million, impacted by investments in scaling non-UK operations. The planned separation of Octopus Energy and Kraken Technologies aims to unlock further growth potential.

Outlook and Policy Advocacy

Looking ahead, Origin reaffirmed FY26 guidance with Energy Markets underlying EBITDA expected between $1.4 billion and $1.7 billion. Australia Pacific LNG production is forecast at 635–680 PJ, with LNG trading gains anticipated between $100 million and $150 million. Origin continues to advocate for stable, long-term energy market policies to support investment and minimize transition costs for consumers. The company also highlighted ongoing community support initiatives, including $38 million in hardship assistance and multi-million dollar contributions to regional projects.

Bottom Line?

Origin’s strategic investments and clear emissions roadmap position it well for the challenges and opportunities of Australia’s energy transition.

Questions in the middle?

• How will delays in renewable project approvals impact Origin’s growth targets?
• What are the financial implications of Octopus Energy’s business separation for Origin?
• How will Origin balance emissions reduction with energy reliability amid rising demand?