One of the nation’s largest power suppliers Origin Energy (ASX:ORG)
dived to a loss of $2.29 billion for their full-year as the rise in clean energy smashed prices across the business amid the Covid-19 pandemic.
Following the mammoth write-downs, the power supplier posted a 69 per cent fall in underlying earnings at $318 million from a year ago after they flagged last month that lower electricity prices and rising coal and gas costs were set to squeeze their margins.
The energy giant booked a $1.6 billion post-tax impairment compromising of a $583 million erosion on the value of their electricity generation property, plant and equipment, and $995 million on their energy markets goodwill due to lower wholesale prices and higher gas supply costs.
Earnings before interest, tax, depreciation, and amortisation for the energy markets business dropped 32 per cent to $991 million from a year ago which landed close to smack centre within their June 30 guidance.
Given the numbers, Origin counselled investors that the pain would linger if not deepen into financial year 2022.
Chief executive officer Frank Calabria said “operating conditions were challenging this year due to low prices and the impacts of Covid-19 across our key commodities of electricity, natural gas and oil”.
“Energy markets headwinds are expected to persist into financial year 2022, though this should be largely offset by the strong performance of our integrated gas business.”
A dividend of 7.5 cents per share unfranked was declared, down from 10 cents same time last year to be paid in October this year.
Shares in Origin Energy are trading 2.75 per cent lower at $4.25.