Underlying profit of
Free Cash Flow remained robust at
Origin CEO
'Our immediate focus is on capital discipline and cost management to continue to build balance sheet resilience, with a rebound in Energy Markets earnings expected in FY2023 assuming current forward commodity prices continue and flow through to tariffs.
'There were a number of operational highlights across Origin's two businesses, contributing to stable cash flows.
'Strong field capability and improved productivity helped deliver record low costs, with a distribution breakeven almost half what it was just three years ago, which supported a strong cash distribution to Origin.
'The generation fleet continued to have very high reliability, and Origin was able to respond with increased supply to support reliability and cover unplanned outages at a number of other plants across the NEM. Origin also boosted gas supply and transport arrangements to help address the expected future supply shortage in southern markets forecast by AEMO.
'In retail, strategic NPS reached a record high and customer accounts increased through our Everyday Rewards plan and growth segments including solar, broadband and community energy services. Progress with our new, more efficient retail operating model continues, and more than 250,000 customer accounts are now on Kraken as we accelerate towards a target of greater than 850,000 customer accounts by end December.
'The growth trajectory of Octopus Energy continues to impress, with strong organic growth of more than 100,000 new customer accounts in the
'Strong, diversified cash flow from our two core businesses allows Origin to balance the priorities of paying down debt and delivering returns to shareholders, while continuing to invest in targeted growth opportunities.
'To address lower earnings in the near-term, we are focused on continued capital discipline and achieving the targeted
'With many Australian households and businesses affected by the pandemic at various times over the past year, I am proud of everything we have done, and continue to do, to look after our customers, including payment extensions and other assistance,'
Dividend
The board has determined to pay an unfranked final dividend of
The board continues to target a payout ratio of 30 to 50 per cent of free cash flow per annum, and will consider a combination of ordinary dividends and on-market share buybacks in future.
The dividend reinvestment plan (DRP) will operate with nil discount. The requirements of the DRP shares will be satisfied through on-market purchase.
Contact:
Anneliis Allen
Tel: +61 2 8345 5119
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