Origin Energy (ASX:ORG) posts AU$1.43B loss in FY22; shares slump

Highlights:

• Origin Energy, warning about ‘uncertain’ market conditions, has reported a statutory loss of AU$1,429 million in FY2022.
• The company has, however, delivered an underlying profit of AU$407 million, while underlying EBITDA reached AU$2,114 million in the given period.
• The company has determined a partly franked dividend of 16.5 cents per share, payable in September 2022.

Share price of Origin Energy Limited (ASX:ORG) headed south on Thursday (18 August 2022) after the company released its full-year results for 2022 full year (FY22). The energy business operator also shared the outlook for FY23.

At 11:32 AM AEST, Origin shares were spotted trading 5.60% lower from the previous close at AU$5.72 per share. Meanwhile, the ASX 200 Utilities (INDEXASX:XUJ) was 2.05% down to 7,793.70 at 11:56 AM AEST.

ORG share price, has gained 1.24% in last six months on the ASX while, during last one year, it has increased 30.89%.

How did Origin Energy perform in FY22?

• In FY22, the underlying profit of Origin Energy surged by 30% to AU$407 million (compared to the previous year). In integrated gas, commodity prices drove the company’s earnings, offset by lesser earnings in the energy markets because of the challenging market environment.
• Underlying EBITDA increased to AU$2,114 million. In FY21, it was AU$2,036 million.
• The statutory loss for the year stands at AU$1,429 million, reflecting a AU$2,196 million non-cash impairment.
• Origin reported a free cash flow position of AU$1,062 million in FY22. It was driven by the record cash distribution of AU$1,595 million from Australia Pacific LNG because of higher realised spot LNG and oil prices.
• In these 12 months, the adjusted net debt declined to AU$2,838 million from AU$4,639 million in FY21.

Image source: © Photobyphotoboy | Megapixl.com

Dividend announced by Origin

Origin Energy announced a final dividend of 16.5 cents per share, taking the full-year dividend to 29 cents per share. Reportedly, the shares are 75% franked. Considering the capital management plan of the organisation, Origin’s board has suspended the dividend reinvestment plan.

The tentative date of dividend distribution is 30 September 2022, as per today’s release.

Outlook

Origin said there is uncertainty about the potential earning outcomes in the coming financial year (FY23). The company expects a surge in the underlying earnings, driven by the gas business earnings. The electricity gross profit is forecasted to remain suppressed.

As per the ASX announcement, the company would continuously assess the business outlook and would share the same when the uncertainty reduces.

The expected Australia Pacific LNG production is 680 to 710 PJ in FY23.

In FY24, the company expects a further increase in underlying earnings. The growth scale will depend upon the energy and fuel prices.