Origin reports A$2.3bn full-year loss
Australian gas and power retailer Origin Energy on August 19 reported a net loss of A$2.3bn ($1.69bn) for the 12 months to June 30 (FY21) owing to impairments and lower power prices. It realised a profit of A$83mn in the previous year.
The company last month announced it would absorb non-cash post-tax charges of A$2.25bn in FY21. It recognised impairment charges of about A$1.58bn against goodwill on its energy markets business and its generation assets. It also flagged a A$669mn tax expense. Underlying profit, which excludes one-off items, in FY21 dropped 69% to A$318mn.
Origin said FY21 was characterised by the impacts of COVID-19 on energy demand and prices across key commodities: electricity, natural gas and oil. “The impact in domestic energy markets was exacerbated by mild summer weather, continued growth in renewables and regulatory uncertainty,” it said.
The company expects similar market conditions in FY22 as well; however, it expects east coast gas prices to reconnect with the regional JKM index over the medium term.
Origin said continued increases in large and small-scale renewable energy will maintain downward pressure on average electricity prices. It expects current supply constraints in global LNG markets to ease over the next 12 months as liquefaction utilisation rates rise and new supply commences production.