Company Interview / LNG fuels Origin's annual profit

Key Points:

Origin Energy (ASX:ORG) annual profit rises 26%, led by LNG gainsKraken platform and retail growth deliver customer and operational benefitsOctopus Energy expands rapidly in the UK and Europe despite short-term lossesMajor investments in battery storage and renewables underpin future outlook

Origin Energy has reported a 26% lift in annual profit, with Frank Calabria attributing the strong performance primarily to gains from its LNG operations. Underlying net profit increased to $1.49 billion, broadly in line with market expectations, while gross earnings from energy markets reached $1.4 billion—surpassing guidance. CEO Frank Calabria highlights the value of Origin's diversified portfolio, noting that LNG trading gains have supported results despite weaker retail energy earnings. With wholesale energy prices predicted to remain steady and competition intensifying, Calabria anticipates the retail market will remain tough, but points to solid customer growth and further benefits from the Kraken technology platform.

Calabria sees the union with Octopus Energy and expansion of the Kraken platform as central to Origin’s growth. Octopus Energy, now leading the UK market, booked a gross loss due to significant investment, yet Calabria remains optimistic due to its rapid growth, 7.6 million UK customers, and expansion into Europe. Calabria outlines continued international growth via investments in both Octopus and Kraken.

On renewables, Origin is actively developing major projects, including 1.7GW of battery storage and the 1.5GW Yanko Delta wind farm in New South Wales. Following the acquisition of SolarQuotes, Calabria expects continued growth in rooftop solar and behind-the-meter batteries. Guidance for FY26 includes EBITDA of $1.4–$1.7 billion for energy markets, with strong capital expenditure planned.