OGFGY - Origin Energy Limited (OGFGF) Q2 2024 Earnings Call Transcript

2024-02-14 23:09:11 ET

Origin Energy Limited (OGFGF)

Q2 2024 Earnings Conference Call

February 14, 2024, 05:30 PM ET

Company Participants

Frank Calabria - CEO and Managing Director

Lawrie Tremaine - CFO

Greg Jarvis - Executive General Manager, Energy Supply and Operations

Jon Briskin - Executive General Manager, Retail

Tony Lucas - Executive General Manager, Future Energy and Technology

Conference Call Participants

Tom Allen - UBS

Reinhardt van der Walt - Bank of America

Nik Burns - Jarden, Australia

Dale Koenders - Barrenjoey

Ian Myles - Macquarie

Rob Koh - MS

Gordon Ramsay - RBC Capital Markets

Mark Busuttil - JPMorgan

Presentation

Frank Calabria

Okay. Good morning, everyone and welcome to the Origin Energy 2024 Half Year Results Presentation. I'm Frank Calabria, and I'm joined here in Sydney today by the Origin Executive Leadership Team. And while I'm on the topic of the team, many of you have seen that we made an announcement a couple of weeks ago that after six years at Origin and a career spanning more than 40 years, Lawrie Tremaine has decided to retire in July this year.

Something he has been planning and also discussing with me for some time. And so while we have a few more months with Lawrie at Origin, I would like to take this opportunity in front of all of you to acknowledge just the key role he has played in the repositioning and growth of Origin, and also as an integral member of the executive team.

As we said in that announcement, a process has commenced to identify a successor and we will share more information at the appropriate time. And I know many of you will get the opportunity, to see Lawrie over the coming days and weeks. So congratulations Lawrie.

Slide 2 contains the outline for today, which most of you should be familiar with. This will be followed by an opportunity for you all to ask questions. Just pausing on the introduction slide, I just wanted to really outline the first section.

So in this first section we will go through Origin's value proposition, how we are tracking on the execution of our strategy, key financial highlights for the half year, and also very importantly our continued focus and commitment to support customers and communities, which is more important than ever and I'd like to share some of the specific things we're doing, but just also to continue to remind you that's at the core of the purpose of Origin and as I said, never more important than the times we live in today.

So just turning to Slide 4. Origin represents a unique energy transition value proposition. In energy markets we have a retail business with scale and strong differentiated capabilities. We have a flexible generation portfolio that is difficult to replicate, and increasingly valuable, and we have growth opportunities through emerging businesses and also investing into the transition.

The energy transition is global and through our investment in the rapidly growing Octopus Energy, we are creating value from this. Firstly, through their world-class enterprise software platform, and also their energy transition business, which you'd know through their U.K. retail business, but rapidly growing internationally and through energy services.

Third dimension to the proposition is gas, which will play an increasingly valuable and critical role it is already today, and for the future energy mix for many years to come. And I think that's increasingly appreciated. Our integrated gas business as both shareholder, and operator of the high quality APLNG gas resource is reliably delivering gas and did that again in the last six months, and also delivering very robust cash flows.

I'll expand on the value proposition over the coming slides, for those three aspects of Origin. It's worth just reflecting right now though over recent times at Origin, the corporate activity that you're no doubt aware over the last year or so, and the strong business performance both stand out for me. Clearly the corporate activity has shone a spotlight on our business, and what I believe to be an advantaged position that we hold.

At the same time, I'm also proud of the strong business performance we, the team have delivered over this period. So both of these have enhanced our confidence on strategic direction, and also our capabilities to execute. And I think equally important, we're excited about the opportunities ahead, and getting after them. I think we've got good momentum and you've seen over recent times, our investments in the Eraring and Mortlake batteries.

We've increased our stake in Octopus, and we made the acquisition of two retail aggregator businesses, just to name a few of the things that have been underway. It is also timely, with those two events over the last six months, to evaluate our key strategic choices, and our investor proposition. And so consistent with our message, at the end of last year, we are actively working on this and we'll share more with you over the coming months....

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