By David Winning

SYDNEY--Origin Energy Ltd. reported a sharp fall in annual profit as it absorbed a large writedown of its Australia Pacific LNG project and felt the sting of lower wholesale energy prices and reduced revenue from liquefied natural gas sales.

Origin reported a net profit of 83 million Australian dollars (US$59.6 million) in the 12 months through June, compared with a profit of A$1.21 billion a year earlier.

The result included a large writedown of assets, which Origin had signaled in mid-July as it adjusted to a weaker outlook for commodity prices and the ongoing economic impact of the coronavirus pandemic. An impairment of its share of the Australia Pacific LNG project was driven by lower oil-price assumptions.

"With the pandemic causing a reduction in electricity and gas demand, Origin was able to utilize the flexibility of our generation fleet and wholesale gas portfolio, as well as portfolio flexibility at Australia Pacific LNG, to adapt to market conditions and mitigate impacts on the business," said Chief Executive Frank Calabria.

Underlying earnings before interest, tax, depreciation and amortization were 2.8% lower at A$3.14 billion. Underlying Ebitda from its Energy Markets business totaled A$1.46 billion, in line with its earlier forecast for between A$1.4 billion and A$1.5 billion.

Directors of the company declared a final dividend of 10 cents a share, bringing the full-year payout to 25 cents.

Origin forecast underlying Ebitda of between A$1.15 billion and A$1.30 billion in its energy markets business in the fiscal year through June, 2021.

That view reflects "lower electricity gross profit due to pass through of lower wholesale prices to customers and higher network costs absorbed in the regulated tariffs and lower natural gas gross profit with legacy contracts rolling off and tariffs repricing, partially offset by a targeted A$70 million reduction in cost to serve," the company said.

Australia Pacific LNG production is expected to be lower at 650-680 petajoules, reflecting lower demand. "Distribution breakeven is expected to be in the range of US$27-31/bbl at an average AUD/USD exchange rate of 0.69," Origin said.

The company also estimated capital expenditure in fiscal 2021 at A$420 million-A$470 million. 



  Write to David Winning at david.winning@wsj.com