Origin Energy Limited (ASX:ORG): Energy Markets and Gas Operations Shape Business Performance

Aditi Sarkar

19 October 2026 11:11 PM AEDT

Origin Energy Limited (ASX:ORG): Energy Markets and Gas Operations Shape Business Performance

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

FY26 statutory profit reached $1,574 million, while underlying profit was $1,159 million.
Adjusted Free Cash Flow reached $2,074 million in FY26.
Energy Markets reported underlying EBITDA of $1,701 million.
Australia Pacific LNG production totalled 668 PJ on a 100 per cent basis.
Large-scale batteries operating by August totalled 1.3 GW / 4.1 GWh.

Origin Energy Limited (ASX:ORG) supplies electricity and gas to Australian households and businesses, generates power and participates in natural gas production and LNG markets. Its FY26 results reflected different earnings conditions across Energy Markets and Integrated Gas, while investment in battery storage and customer services continued. Origin Energy (ASX:ORG) also outlined operating priorities and indicative guidance for FY27 in its August 2026 results release.

Annual Earnings and Cash Generation

Origin Energy (ASX:ORG) reported FY26 statutory profit of $1,574 million, underlying profit of $1,159 million and underlying EBITDA of $3,220 million. The company attributed lower commodity-linked Integrated Gas earnings to softer realised oil prices and LNG trading gains, while its domestic Energy Markets activities delivered an improved contribution. These movements illustrate the different revenue exposures within the group.

Adjusted Free Cash Flow amounted to $2,074 million. The company reported adjusted net debt to adjusted underlying EBITDA of 1.6 times and declared a fully franked final dividend of 30 cents per share, bringing FY26 total dividends to 60 cents per share. These figures describe the reported FY26 position rather than an indication of future distributions.

Retail Operations and Electricity Storage

Within Energy Markets, Origin Energy (ASX:ORG) recorded underlying EBITDA of $1,701 million in FY26. Electricity gross profit was $1,608 million and natural gas gross profit was $612 million. The retailer added 243,000 customer accounts and reported a cost to serve of $642 million. Retail activity remains linked to customer demand, wholesale procurement and operating efficiency.

Origin had 1.3 GW / 4.1 GWh of large-scale batteries operational as at August 2026 within a 1.8 GW development program. Batteries can store electricity for later dispatch, providing operational flexibility alongside generation and customer supply activities. The company also continued work on the Yanco Delta Wind Farm project toward a final investment decision.

Gas Production and International Interests

Origin Energy (ASX:ORG) reported Integrated Gas underlying EBITDA of $1,620 million for FY26. Australia Pacific LNG produced 668 PJ on a 100 per cent basis, and Origin received $911 million in fully franked dividends from the venture. The average realised LNG price was A$13.64/GJ, highlighting the business segment’s exposure to energy commodity pricing.

Origin also holds interests in Octopus Energy and Kraken Technologies. In its FY26 results, Octopus reported 19 million customer accounts, while Kraken had 95 million contracted accounts. The technologies and retail platforms provide a separate business exposure from Origin’s Australian electricity generation and gas interests.

FY27 Operational Guidance

Origin Energy (ASX:ORG) provided FY27 Energy Markets EBITDA guidance of $1,550–$1,850 million, subject to broadly unchanged market and regulatory conditions. Australia Pacific LNG production was estimated at 625–670 PJ on a 100 per cent basis. The company outlined total Origin capital expenditure of $450–$650 million, with spending influenced by the progression of its battery development program.

These estimates remain conditional on operating conditions and are not reported outcomes. Gas field decline, electricity wholesale prices, customer activity and project delivery are among the operational factors relevant to the guidance.

Key Insights

Origin Energy (ASX:ORG) combines electricity retail, power generation, LNG-linked earnings and investments in energy technology. Its FY26 disclosures showed cash generation alongside uneven profit contributions between its main segments. The company’s subsequent operating performance will depend on the interaction of domestic energy conditions, gas production, capital spending and execution of its disclosed development activities.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.