Origin Energy (ORG) Q4 2024 earnings summary

Executive summary

• Australia Pacific LNG (APLNG) revenue rose 2% sequentially to $2,602 million in the June quarter, driven by higher volumes, though FY24 revenue was 12% lower year-over-year due to lower commodity prices.

• FY24 production increased 3% year-over-year, supported by effective well and field optimisation, partially offset by an unplanned LNG vessel outage in November 2023.

• Energy Markets electricity sales volumes were steady year-over-year, with higher retail sales offset by lower business volumes; gas volumes declined 10% due to reduced short-term wholesale sales.

• Octopus Energy's valuation increased 15% since December 2023, with new investments from existing shareholders and expansion into North America.

Financial highlights

• June quarter APLNG production was 175.2 PJ, steady sequentially; FY24 production was 693.7 PJ, up 3% year-over-year.

• APLNG commodity revenue for FY24 was $9,881 million, down 12% from FY23.

• June quarter realised average LNG price was US$11.70/mmbtu, down 4% sequentially and year-over-year; domestic gas price was $9.30/GJ, up 35% sequentially.

• Origin received $1,367 million in cash distributions from APLNG in FY24, net of oil hedging.

• FY24 Energy Markets capex was $647 million, up 43% year-over-year, with investments totaling $844 million, including $540 million in Octopus Energy.

Outlook and guidance

• Agreement executed to delay Eraring Power Station retirement to August 2027.

• Approved $450 million investment in the second stage of the Eraring battery, adding 240 MW/1030 MWh capacity.

• Continued expansion of battery storage, with 1.5 GW of owned and tolled projects committed.