Orca Gold Inc.

2022 Annual ReportWhere all good change startsLPGContents

1

Contents

A message from Scott and Frank

About Origin

Where We Operate

Board of Directors

Executive Leadership Team

Operating and Financial Review

Directors’ Report

Remuneration Report

Lead Auditor’s Independence Declaration

Financial Statements

Share and Shareholder Information

Exploration and Production Permits and Data

Annual Reserves Report

Five-year Financial History

Glossary and Interpretation

2

4

5

6

8

11

54

58

81

83

150

154

156

160

162

2

Annual Report 2022

A message from 
Scott and Frank

“At a time of incredible change for 
our sector, we have taken steps to put 
Origin in a stronger position to navigate 
the energy transition and create value 
for shareholders.”

Welcome to the 2022 Annual Report

It has been another extraordinary year in energy. The 
energy transition continued to accelerate and collided with 
macroeconomic and geopolitical events, resulting in major volatility 
in energy prices. A number of domestic factors added to the 
challenging conditions, with significant coal power plant outages in 
the market and wet weather affecting both renewables output and 
coal supply. This, in turn, caused an acute tightening of electricity 
and gas supply, leading to escalated wholesale prices.

Despite the challenges faced by the industry, the excellent operating 
performance of Origin’s generation fleet played a vital role in keeping 
the lights on for customers. We are very aware that some customers 
have been concerned about rising energy prices at a time of broader 
cost of living pressures, and we have continued to prioritise support 
for those in a vulnerable financial position.

Overall, we are pleased with how the business has performed this 
year, navigating myriad challenges and delivering higher underlying 
profit and strong cash flow. We have taken important steps to put 
Origin in a stronger position for the future, including announcing 
a refreshed strategy and ambition to lead the energy transition 
through cleaner energy and customer solutions.

We will shortly release new, more ambitious targets to accelerate 
emissions reduction across our business as part of Origin’s first 
Climate Transition Action Plan. This plan will be subject to a non-
binding, advisory vote at our 2022 Annual General Meeting on 
19 October.

Financial performance

Origin’s FY2022 financial performance reflected the strength of our 
integrated business, with strong commodity prices driving higher 
earnings from our Integrated Gas business, helping offset lower 
earnings from Energy Markets.

Underlying profit rose 30 per cent to $407 million, and Underlying 
EBITDA rose to $2,114 million, compared to $2,036 million in 
the prior year. On a statutory basis, Origin announced a loss of 
$1,429 million, reflecting a $2,196 million non-cash impairment.

A $4,354 million uplift of in-the-money Energy Markets derivative 
assets associated with the hedging of very high wholesale electricity 
and gas prices resulted in the requirement to recognise the non-cash 
impairment of goodwill. This does not reflect the performance of the 
business, future cash flows, or any impact to future value.

Origin benefitted from a record cash distribution from Australia 
Pacific LNG of $1,595 million, due to higher realised oil and spot 
LNG prices. This distribution contributed to a strong free cash flow 
position of $1,062 million.

Adjusted net debt reduced by $1,801 million to $2,838 million, as 
strong cash flow and proceeds from the sale of a 10 per cent interest 
in Australia Pacific LNG enabled Origin to pay down debt, invest in 
growth and deliver returns to shareholders, including a $250 million 
share buyback.

The board has determined a partly franked final dividend of 16.5 
cents per share. Shareholders received total dividends of 29 cents 
per share in FY2022.

A message from Scott and Frank

3

Operational performance

Board and people

In Integrated Gas, Australia Pacific LNG’s performance was strong. 
Reserves increased significantly due to higher estimated recoveries 
from producing fields, and revenue rose sharply on the strength of 
higher global commodity prices. Australia Pacific LNG continued 
to be a major provider of gas to the domestic market. Integrated 
Gas Underlying EBITDA was $1,837 million, up 62 per cent on the 
previous year.

In Energy Markets, earnings were impacted by high commodity 
prices and domestic supply interruptions, combined with volatile 
wholesale electricity prices, higher fuel costs and wet weather. 
Underlying EBITDA for Energy Markets of $365 million was 63 per 
cent lower than the prior year.

Despite the challenging conditions, there were several highlights in 
Energy Markets. Our customer base grew to 4.5 million, as 193,000 
new accounts were added through the acquisition of WINconnect 
and a doubling in Broadband customers. Our domestic gas business 
also performed strongly.

Our new retail operating model and migration of customers to 
Kraken is progressing well, with more than half of Origin’s electricity 
and gas customer accounts now on the platform. We are on target 
for completion by December 2022 and have achieved $170 million 
of a targeted total of $200 - $250 million in cash cost savings by 
FY2024, from an FY2018 baseline.

Origin’s investment in Octopus Energy continues to exceed 
expectations, as it successfully navigated very challenging market 
conditions, emerging as the UK’s fifth largest retailer and better 
positioned to deliver on its ambitious growth strategy.

Outlook

There remains uncertainty around the range of potential earnings 
outcomes for FY2023. Underlying earnings are expected to be 
higher, driven by growth in earnings from the gas business, while 
electricity gross profit is expected to remain supressed. Risk of coal 
under-delivery remains, including due to rail and mine performance. 
We will continue to assess the outlook for the business with a view to 
providing an update when there is less uncertainty.

In FY2024, we anticipate further growth in underlying earnings. The 
magnitude of this growth is dependent on fuel and energy prices 
and the extent to which these are reflected in customer tariffs, the 
outcome of a price review on ~50 petajoules of gas supply, and 
delivery of targeted retail savings.

Australia Pacific LNG production for FY2023 is expected to be 680 
– 710 petajoules, reflecting ongoing strong field performance and 
allowing for the impact of recent wet weather events.

While there were fewer serious injuries recorded in FY2022, 
disappointingly, safety performance declined, with our total 
recordable injury frequency rate increasing to 4.0, from 2.7 in 
FY2021. We have further intensified our focus on safety programs 
to help address this decline and continue to target a zero-
harm workplace.

We continued to engage widely with our stakeholders and 
contribute meaningfully to the communities in which we 
operate, increasing regional procurement, indigenous employment, 
workforce diversity and announcing our support for the Uluru 
Statement from the Heart.

We were pleased to welcome Dr Nora Scheinkestel to the Board as 
an Independent Non-executive Director. Dr Scheinkestel has deep 
financial expertise and extensive experience as a director of leading 
ASX listed companies.

In conclusion, at a time of incredible change for our sector, we 
have taken steps to put Origin in a stronger position to navigate the 
energy transition and create value for shareholders. We recognise 
the energy transition is not without its challenges for society, and we 
must continue to work to get the balance right between emissions 
reduction, and energy security, reliability and affordability. Our 
fundamental belief is that the transition will be good for our business, 
customers and the planet.

We hope you share our optimism for the future and look forward to 
welcoming you to this year’s Annual General Meeting.

Thank you for your continued support.

Scott Perkins
Chairman

Frank Calabria 
Chief Executive Officer

4

Annual Report 2022

About Origin

Leading integrated 
energy company

4.5 million 
customer accounts

5,000
employees

Listed on the Australian Securities 
Exchange in 2000

Electricity, gas, LPG and 
Broadband customers across 
Australia and the Pacific

Inclusivity in the workplace; 
leading parental support

Climate transition embedded 
in our strategy

Powering
Australia

27.5% interest in Australia 
Pacific LNG

Australia's first approved
science-based emissions targets

7,300 MW generation portfolio, 
including 1,245 MW owned 
and contracted renewables 
and storage

Continue to be a significant 
contributor to the east coast 
gas market

Supporting 
Australian communities

Driving future 
energy innovation

Exploration and 
appraisal

The Origin Energy Foundation has 
contributed more than $35 million 
over 12 years

20% interest1 in Octopus Energy, 
investing in new technology,
start-ups and future fuels

Positions in three large prospective 
onshore basins: the Beetaloo, 
Canning and Cooper-Eromanga

1 Following CPPIB' investment in Octopus Energy during December 2021, Origin accounted for its interest in Octopus Energy at 18.7 per cent from 1 December 2021 (previously 

20 per cent). An additional $163 million (£94 million) was invested to restore its 20 per cent interest in August 2022.

Where We Operate

5

Where We Operate

Canning BasinSouth East QueenslandPacific countries LPGBowen/ Surat basinsBrisbaneGladstoneRabaulLaeSantoHoniaraPort VilaSuvaLautokaLabasaApiaPago PagoRarotongaPort MoresbyGasPumped hydroSolar (contracted)Wind (contracted)CoalWind (contracted, not complete)LPG seaboard terminalElectricity customer accountsNatural gas customer accountsOrigin/JV upstream acreageAPLNG upstream acreageProduction facilityAPLNG pipelineExploration & production acreageGenerationBeetaloo BasinAdelaideMelbourneHobartBrisbaneBowen/ Surat Cooper Eromanga BasinbasinsGladstoneLNG ExportBrowse BasinSydney608k495k1,193k379k674k178k257k211k15kCanning BasinSouth East QueenslandPacific countries LPGBowen/ Surat basinsBrisbaneGladstoneRabaulLaeSantoHoniaraPort VilaSuvaLautokaLabasaApiaPago PagoRarotongaPort MoresbyGasPumped hydroSolar (contracted)Wind (contracted)CoalWind (contracted, not complete)LPG seaboard terminalElectricity customer accountsNatural gas customer accountsOrigin/JV upstream acreageAPLNG upstream acreageProduction facilityAPLNG pipelineExploration & production acreageGenerationBeetaloo BasinAdelaideMelbourneHobartBrisbaneBowen/ Surat Cooper Eromanga BasinbasinsGladstoneLNG ExportBrowse BasinSydney608k495k1,193k379k674k178k257k211k15kCanning BasinSouth East QueenslandPacific countries LPGBowen/ Surat basinsBrisbaneGladstoneRabaulLaeSantoHoniaraPort VilaSuvaLautokaLabasaApiaPago PagoRarotongaPort MoresbyGasPumped hydroSolar (contracted)Wind (contracted)CoalWind (contracted, not complete)LPG seaboard terminalElectricity customer accountsNatural gas customer accountsOrigin/JV upstream acreageAPLNG upstream acreageProduction facilityAPLNG pipelineExploration & production acreageGenerationBeetaloo BasinAdelaideMelbourneHobartBrisbaneBowen/ Surat Cooper Eromanga BasinbasinsGladstoneLNG ExportBrowse BasinSydney608k495k1,193k379k674k178k257k211k15kCanning BasinSouth East QueenslandPacific countries LPGBowen/ Surat basinsBrisbaneGladstoneRabaulLaeSantoHoniaraPort VilaSuvaLautokaLabasaApiaPago PagoRarotongaPort MoresbyGasPumped hydroSolar (contracted)Wind (contracted)CoalWind (contracted, not complete)LPG seaboard terminalElectricity customer accountsNatural gas customer accountsOrigin/JV upstream acreageAPLNG upstream acreageProduction facilityAPLNG pipelineExploration & production acreageGenerationBeetaloo BasinAdelaideMelbourneHobartBrisbaneBowen/ Surat Cooper Eromanga BasinbasinsGladstoneLNG ExportBrowse BasinSydney608k495k1,193k379k674k178k257k211k15k6

Board of 
Directors

Annual Report 2022

Scott Perkins

Ilana Atlas

Maxine Brenner

Frank Calabria

Greg Lalicker

Independent 
Non-executive Chairman

Independent 
Non-executive Director

Independent 
Non-executive Director

Managing Director &
Chief Executive Officer

Independent 
Non-executive Director

Tenure 1 year 6 months

Tenure 8 years 9 months

Tenure 5 years 10 months

Tenure 3 years 5 months

Greg Lalicker joined the 
Board in March 2019. He is 
a member of the Safety and 
Sustainability Committee.

Greg is the Chief 
Executive Officer of Hilcorp 
Energy Company, based 
in Houston, USA. Hilcorp 
is the largest privately 
held independent oil 
and gas exploration and 
production company in the 
United States.

Greg joined Hilcorp’s 
leadership team in 2006 
as Executive Vice President 
where he was responsible 
for all exploration and 
production activities. He 
was appointed President in 
2011 and Chief Executive 
Officer in 2018. Prior to 
working for Hilcorp, Greg 
was with BHP Petroleum 
based in Midland, Houston, 
London and Melbourne 
as well as McKinsey & 
Company where he worked 
in its Houston, Abu Dhabi 
and London offices.

Greg graduated as a 
petroleum engineer from 
the University of Tulsa. 
He has a Master of 
Business Administration and 
a law degree.

Ilana Atlas joined the 
Board in February 2021. 
She is a member 
of the Remuneration, 
People and Culture and 
Risk committees.

Ilana is a Non-executive 
Director of ANZ Banking 
Group Limited (since 2014) 
and Scentre Group Limited 
(since May 2021). She is 
the Chair of Jawun, on the 
Board of the Paul Ramsay 
Foundation and a member 
of the Council of the 
National Gallery of Australia.

Ilana was previously 
Chairman of Coca-Cola 
Amatil Limited (2017 – 
2021). Her last executive 
role was Group Executive, 
People, at Westpac, where 
she was responsible for 
human resources, corporate 
affairs and sustainability. 
Prior to that role, she 
was Group Secretary and 
General Counsel. Before her 
10-year career at Westpac, 
Ilana was a partner in 
law firm Mallesons Stephen 
Jaques (now known as 
King & Wood Mallesons). 
In addition to her practice 
in corporate law, she held 
a number of management 
roles in the firm including 
Executive Partner, People 
and Information, and 
Managing Partner.

Ilana holds a Bachelor of 
Jurisprudence (Honours) 
and Bachelor of Laws 
(Honours) from the 
University of Western 
Australia and Masters of 
Laws from the University 
of Sydney.

Maxine Brenner joined 
the Board in November 
2013. She is Chair of the 
Safety and Sustainability 
Committee and a member 
of the Audit, Nomination 
and Risk committees.

Maxine was previously 
a Managing Director of 
Investment Banking at 
Investec Bank (Australia) 
Ltd. Prior to Investec, 
Maxine was a Lecturer 
in Law at the University 
of NSW and a lawyer 
at Freehills, specialising in 
corporate law.

Maxine is a Non-executive 
Director and Chairman 
of the Remuneration 
Committee of Orica Ltd 
(since April 2013), Non-
executive Director of Qantas 
Airways Ltd (since August 
2013) and Non-executive 
Director and Chair of 
the Risk Committee of 
Woolworths Group Limited 
(since 1 December 2020). 
She is also a member of the 
University of NSW Council.

Maxine’s former 
directorships include 
Growthpoint Properties 
Australia, Treasury 
Corporation of NSW, 
Bulmer Australia Ltd, 
Neverfail Springwater Ltd 
and Federal Airports 
Corporation, where she was 
Deputy Chair. In addition, 
Maxine has served as a 
Council Member of the 
State Library of NSW and 
as a member of the 
Takeovers Panel.

Maxine holds a Bachelor of 
Arts and a Bachelor of Laws.

Frank Calabria was 
appointed Managing 
Director & Chief Executive 
Officer in October 2016. 
Frank is a member 
of the Safety and 
Sustainability Committee 
and a Director of the Origin 
Energy Foundation.

Frank first joined Origin as 
Chief Financial Officer in 
November 2001 and was 
appointed Chief Executive 
Officer, Energy Markets in 
March 2009. In that latter 
role, Frank was responsible 
for the integrated business 
within Australia including 
retailing and trading of 
natural gas, electricity and 
LPG, power generation and 
solar and energy services.

Frank is a Director of 
the Australian Energy 
Council and the Australian 
Petroleum Production & 
Exploration Association. He 
is a former Chairman 
of the Australian Energy 
Council and former Director 
of the Australian Energy 
Market Operator.

Frank has a Bachelor of 
Economics from Macquarie 
University and a Master 
of Business Administration 
(Executive) from the 
Australian Graduate School 
of Management. Frank is 
a Fellow of the Chartered 
Accountants Australia and 
New Zealand and a Fellow 
of the Financial Services 
Institute of Australasia.

Tenure 6 years 11 months 
including 1 year 10 months 
as Chairman

Scott Perkins joined the 
Board in September 
2015 and was appointed 
Chairman in October 2020. 
He is Chairman of the 
Nomination Committee and 
a member of the Audit, 
Remuneration, People and 
Culture, Risk and Safety and 
Sustainability committees.

Scott has extensive 
Australian and international 
experience as a leading 
corporate adviser. He was 
formerly Head of Corporate 
Finance for Deutsche Bank 
Australia and New Zealand 
and a member of the 
Executive Committee with 
overall responsibility for the 
Bank’s activities in this 
region. Prior to that he 
was Chief Executive Officer 
of Deutsche Bank New 
Zealand and Deputy CEO of 
Bankers Trust New Zealand.

Scott is a Non-executive 
Director of Woolworths 
Group Limited (since 
September 2014) and 
Brambles Limited (since 
May 2015). He is Chairman 
of Sweet Louise (since 
2005) and the New 
Zealand Initiative (since 
2012). Scott was previously 
a Director of the Museum 
of Contemporary Art in 
Sydney (2011 - 2020) and 
a Non-executive Director 
of Meridian Energy (1999 
- 2002).

Scott has a longstanding 
commitment to breast 
cancer causes, the 
visual arts and public 
policy development.

Scott holds a Bachelor of 
Commerce and a Bachelor 
of Laws (Hons) from 
Auckland University.

Board of Directors

7

Mick McCormack

Bruce Morgan

Steven Sargent

Nora Scheinkestel

Joan Withers

Independent 
Non-executive Director

Independent 
Non-executive Director

Independent 
Non-executive Director

Independent 
Non-executive Director

Independent 
Non-executive Director

Tenure 1 year 8 months

Tenure 9 years 9 months

Tenure 7 years 3 months

Tenure 5 months

Tenure 1 year 10 months

Steven Sargent joined 
the Board in May 
2015.  He is Chairman 
of the Origin Energy 
Foundation, Chairman 
of the Remuneration, 
People and Culture 
Committee and a member 
of the Nomination, 
Risk, and Safety and 
Sustainability committees. 

Steven’s executive career 
included 22 years at General 
Electric, where he gained 
extensive multi-industry, 
international experience 
leading businesses in 
industries including energy, 
healthcare and financial 
services across the USA, 
Europe and Asia Pacific.

Steven is currently a 
Non-executive Director 
of Ramsay Healthcare 
Limited and Chairman 
of infection prevention 
company Nanosonics 
Limited. Steve’s unlisted 
board activities include 
Non-Executive Director 
of The Great Barrier 
Reef Foundation.

Steven was previously 
Chairman of OFX Group 
Limited (2016 - 2022), 
and Non-executive Director 
of Veda Group Limited. 
Steven holds a Bachelor of 
Business from Charles Sturt 
University and is a Fellow 
with the Australian Institute 
of Company Directors.

Nora Scheinkestel joined 
the Board in March 2022. 
She is a member of 
the Audit, Nomination and 
Risk committees.

Nora is an experienced 
company director with 
almost 30 years experience 
as a non-executive chairman 
and director of companies 
in a wide range of 
industries including public, 
government and private 
sectors. She has a long 
track record in highly 
regulated sectors such as 
infrastructure and financial 
services and has served as 
chairman and director of 
numerous regulated utilities 
in the electricity, gas and 
water sectors.

Nora is currently a Non-
executive Director of 
Telstra Corporation Limited 
(since 2010), Brambles 
Limited (since 2020) 
and Westpac Banking 
Corporation (since 2021). 
Previous directorships of 
publicly listed companies 
include the Atlas Arteria 
group, which she chaired, 
Ausnet Services Ltd and 
Orica Limited.

Nora holds a Bachelor 
of Laws (Honours) First 
Class and a Doctor 
of Philosophy from the 
University of Melbourne.

Joan Withers joined the 
Board in October 2020. 
She is Chair of the 
Risk Committee and a 
member of the Audit and 
Nomination committees.

Joan has spent over 
25 years working in the 
media industry holding CEO 
positions at both Fairfax 
NZ Ltd and The Radio 
Network and she also 
has significant corporate 
governance experience.

She is currently Chair of The 
Warehouse Group Ltd (since 
2016), director of ANZ Bank 
NZ Ltd (since July 2013) and 
Sky Network TV Ltd (since 
2019). She has previously 
held Chair positions 
at Auckland International 
Airport (1997 – 2013), 
Mercury NZ Ltd (2009 – 
2019) and TVNZ (2015 – 
2017). She has also held 
directorships on the boards 
of some of New Zealand’s 
largest companies including 
Meridian Energy Ltd and 
Tourism Holdings Ltd. Prior 
to her appointment as CEO 
of Fairfax NZ Ltd, Joan 
was a director on the 
Australian board of John 
Fairfax Holdings Ltd.

Joan holds a Masters 
Degree in Business 
Administration from The 
University of Auckland.

Mick McCormack joined the 
Board in December 2020. 
He is a member of the Audit, 
Remuneration, People and 
Culture and Safety and 
Sustainability committees.

Bruce Morgan joined the 
Board in November 2012. 
He is Chairman of the 
Audit Committee and a 
member of the Nomination 
and Risk committees.

Mick is Chairman of Central 
Petroleum Limited and 
Non-executive Director of 
Austal Limited. He is also 
Chairman of the Australian 
Brandenburg Orchestra 
Foundation and a director of 
the Clontarf Foundation.

Bruce is Chairman of 
Transport Asset Holding 
Entity of New South Wales 
(since July 2020), a Director 
of the University of NSW 
Foundation and Deputy 
Chair of the European 
Australian Business Council.

Mick was previously 
Managing Director and CEO 
of APA Group (2004 - 2019) 
and has more than 37 years 
of experience in the energy 
and infrastructure sectors, 
including gas-fired and 
renewable energy power 
generation, gas processing, 
LNG and underground 
storage. Prior to joining APA 
in 2000, Mick held various 
senior management roles 
with AGL Energy.

Mick holds a Masters 
of Business Administration 
from the University of 
Queensland, a Graduate 
Diploma of Engineering 
from Monash University, 
and a Bachelor of Applied 
Science from the University 
of Queensland.

Bruce was Chairman of 
Sydney Water Corporation 
(2013 - 2021), a Director 
of Caltex Australia Ltd 
(2013 - 2020), Chairman 
(2015 - 2018) and 
Director (2013 - 2022) 
of Redkite, and served as 
Chairman of the Board 
of PricewaterhouseCoopers 
(PwC) Australia (2005 - 
2012). In 2009, he was 
elected as a member 
of the PwC International 
Board, serving a four-year 
term. He was previously 
Managing Partner of PwC’s 
Sydney and Brisbane 
offices. An audit partner 
of the firm for over 25 
years, he was focused on 
the financial services and 
energy and mining sectors 
leading some of the firm’s 
most significant clients in 
Australia and internationally.

Bruce has a Bachelor 
of Commerce (Accounting 
and Finance) from the 
University of NSW and 
is an Adjunct Professor 
of the University. Bruce 
is a Fellow of Chartered 
Accountants Australia and 
New Zealand and of 
the Australian Institute of 
Company Directors.

8

Annual Report 2022

Executive 
Leadership Team

Jon Briskin

Greg Jarvis

Kate Jordan

Tony Lucas

James Magill

Executive General 
Manager, Energy Supply 
and Operations
Greg Jarvis joined Origin 
in 2002 as Electricity 
Trading Manager and 
was appointed General 
Manager, Wholesale, 
Trading and Business Sales 
in February 2011.

Greg is responsible 
for Wholesale, Trading, 
Generation, HSE and LPG. 
Greg has over 20 years’ 
experience in the financial 
and energy markets.

Executive General 
Manager, Retail

Jon Briskin joined Origin in 
2010 and was appointed 
Executive General Manager, 
Retail in December 2016.

Jon leads the 
teams responsible for 
energy sales, marketing, 
product development and 
service experience for 
Origin’s residential and 
SME customers.

Jon has held various 
roles at Origin, leading 
customer operations, 
service transformation and 
customer experience and 
prior to Origin worked as a 
management consultant.

General Counsel and 
Executive General 
Manager, Company 
Secretariat, Risk 
and Governance
Kate Jordan joined Origin 
in March 2020 as 
General Counsel and 
Executive General Manager, 
Company Secretariat, Risk 
and Governance.

Kate leads the legal, 
company secretariat, risk, 
internal audit and energy 
markets compliance teams.

Prior to joining Origin, 
Kate was Deputy Chief 
Executive Partner at Clayton 
Utz, with responsibility for 
people and development. 
Kate has over 20 years’ legal 
experience across a range of 
corporate transactions.

Executive General 
Manager, Future Energy 
and Technology
Tony Lucas joined Origin 
as Risk Analysis Manager in 
2002 and was appointed 
as General Manager, 
Energy Risk Management in 
February 2011.

Tony leads the team 
responsible for Future 
Energy, Strategy and 
Technology, ensuring that 
Origin is well positioned 
to lead the transition into 
a low-carbon, technology-
enabled world.

Tony began his career 
in the banking industry 
before moving into the 
energy sector.

Executive General 
Manager, Origin Zero

James Magill joined Origin 
in March 2022 and is 
responsible for the newly 
formed business unit, Origin 
Zero. Origin Zero partners 
with large businesses to 
achieve their sustainable 
energy goals through a 
range of energy and energy 
management services.

Prior to joining Origin, 
James held leadership 
roles at Centrica, AGL 
and Genesis Energy in 
retail, technology, M&A 
and strategy.

Executive Leadership Team

9

Sharon Ridgway

Samantha Stevens

Andrew Thornton

Lawrie Tremaine

Executive General 
Manager, People 
and Culture
Sharon Ridgway joined 
Origin in 2009 and 
has been responsible for 
People and Culture since 
December 2016.

Sharon’s team provide 
strategic support to the 
business in key areas such 
as engagement, diversity, 
talent management and 
culture change.

Prior to Origin, Sharon 
developed a wide range 
of experience across 
operational and human 
resources roles whilst 
working in Dixons, a large 
European electrical retailer.

Chief Financial Officer

Lawrie Tremaine joined 
Origin in June 2017 and 
holds the position of Chief 
Financial Officer.

Lawrie leads the teams 
responsible for all 
finance activities, corporate 
strategy and development, 
procurement, investor 
relations and insurance.

Lawrie has over 30 
years’ experience in 
financial and commercial 
leadership, predominantly 
in the resource, oil 
and gas and minerals 
processing industries having 
previously worked at 
Woodside Petroleum.

Executive 
General Manager,
Corporate Affairs
Samantha Stevens joined 
Origin in March 2018 as 
Executive General Manager, 
Corporate Affairs. Samantha 
is responsible for Origin’s 
external affairs, government 
and public policy and 
employee communication 
functions and the Origin 
Energy Foundation.

Samantha has more than 
25 years’ experience 
in corporate affairs, 
mainly in the resources, 
industrials and financial 
services sectors.

Prior to joining Origin, 
Samantha headed up 
Corporate Affairs for the 
global mining services 
company, Orica, and 
previously led the global 
media function and all 
Corporate Affairs M&A 
activity at global mining 
house, BHP, along with 
senior external affairs 
positions at two of 
Australia’s largest banks.

Executive General 
Manager, Integrated Gas

Andrew joined Origin in 
2012 and was appointed as 
Executive General Manager 
– Integrated Gas in 
November 2021.

Andrew is responsible for 
Australia Pacific LNG’s 
upstream operations and 
gas marketing, Origin’s 
upstream assets in the 
Beetaloo, Cooper and 
Canning Basins, and 
business development and 
investment activity in 
renewable fuels and carbon.

Prior to joining Origin, 
Andrew held private equity 
and investment banking 
roles including as an 
Executive Director in 
the Principal Investment 
Area of Goldman Sachs, 
JB Were and a 
member of the Mergers, 
Acquisitions, Restructuring 
and Divestitures group of 
Morgan Stanley.

Operating and Financial Review

11

Operating and Financial Review

For the full year ended 30 June 2022
This report forms part of the Directors’ Report.

1 Market Context and Outlook

FY2022 was a year of unprecedented volatility and challenging operating conditions in global and domestic energy markets. As the global 
economy emerged from the pandemic, demand for oil, coal and natural gas rebounded and this caused the price of these commodities to 
rise. This was exacerbated by Russia’s invasion of Ukraine, which impacted the global supply of these commodities, and saw prices rapidly 
escalate to extremely high levels. These high prices have persisted.

In addition to global factors, Australia’s gas and electricity markets were impacted by a number of domestic/local factors. There was a 
shortage of power in the National Electricity Market, due to very high levels of planned and unplanned coal power plant outages, coal supply 
interruptions, and the La Niña weather pattern dampening renewables output, which also coincided with an early cold snap to start winter. 
This saw the NEM wholesale price of electricity average $276/MWh in the June 2022 quarter, approximately three times the price over the 
same period in the prior year. Gas prices also soared more than three fold over the same period, as substantially more gas was needed for gas 
fired power generation, to cover the supply constraints in the electricity market.

The unprecedented supply challenges and price volatility had a significant impact on the energy market. Five smaller retailers were unable to 
continue supplying electricity to their customers at higher prices and failed, with Origin acting as a Retailer of Last Resort in certain geographic 
areas for some of these retailers, alongside other large retailers.

Oil price - Brent (US$/bbl)

NSW electricity price ($/MWh)

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2
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Coal price (A$/t)

Gas price ($/GJ)

0
2
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1
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1
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1
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2
2
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A

Newcastle 5500
kcal

Newcastle 6000
kcal

JKM netback
price -
Wallumbilla
(ACCC)

Wallumbilla spot
price

 
12

Annual Report 2022

Market Outlook

The global and domestic energy market is experiencing a fundamental transition resulting from changes in technology, increasing 
electrification and increasing commitments to decarbonise.

Recent events have highlighted that this transition will not always be smooth, with volatility expected due to the magnitude and complexity 
of the changes occurring in the energy system, as well as shifts in the geopolitical and macroeconomic environment.

In the medium term, we expect some of the recent high pricing and volatility to ease as fuel prices and supply chain disruptions normalise. 
Increased electricity supply from large and small-scale renewable energy is expected to put downward pressure on average electricity prices 
over time.

The growth in renewables will be supported by underwriting arrangements from governments and corporates with decarbonisation 
objectives. For example, the Australian Government is supporting the transition to cleaner energy, aiming to achieve 82 per cent renewables 
in the electricity market by 2030.

The increase in renewables will in turn increase the need for reliable, dispatchable capacity such as flexible gas-fired generation and battery 
storage at times of peak demand and lower renewable generation.

Electricity markets are expected to remain competitive. Customers are increasingly looking for lower carbon solutions as homes and 
businesses become more connected. Customers are becoming more empowered, managing their energy requirements in partnership with 
retailers such as Origin.

Electricity prices for customers are expected to increase in FY2024 before reducing in mid 2020s as new sources of renewable electricity 
supply put downward pressure on prices. There is also potential for further government intervention in the market should volatility and higher 
prices threaten energy security and affordability.

We expect international and domestic gas prices to remain high given the current global supply constraints. Pressures on the domestic gas 
market will ease as more coal baseload generation comes back online reducing the domestic demand for gas. We further expect the LNG 
industry on the east coast, including our own APLNG project, to continue to meet domestic gas demand.

Energy Policy Reform

The existing energy system has a critical role to play over the coming years as Australia transitions to renewable energy. Policy reform is 
urgently required to ensure the existing energy system performs reliably as it is needed to support this transition. New investment is also 
required in renewable energy, firming generation and transmission to underpin the new energy system. Gas is needed to play a critical role 
in firming renewables but requires a clear market signal to do so. The right market settings can accelerate the transition away from coal and 
towards renewables and maintain reliability for customers.

Policy reform must address the lack of price incentives for reliable generation capacity. Origin supports the development of a well-designed 
capacity mechanism that would allow for the application of a consistent national framework that would provide the incentive to get the 
investment needed to help safeguard reliability at least cost as the market transitions. A capacity mechanism could have an overall positive 
impact by helping to stimulate investment in new supply. Importantly, the capacity mechanism should not be viewed as a means of staving 
off coal closures, but to work alongside a credible framework to help facilitate and manage orderly exits.

It is crucial the capacity mechanism is designed to complement the existing energy-only framework. This would reduce any disruption, 
complexity, and ultimately costs in adopting the scheme, by building on the strengths of the National Energy Market’s current design.

Operating and Financial Review

13

2 Highlights

Our purpose underpins everything we do: Getting energy right for our customers, communities and planet

Getting energy right for our customers

Our customers are at the heart of everything we do. We are committed 
to providing ‘good energy’ that is reliable, affordable and sustainable. In 
FY2022, we:

•

supported residential and small business customers in financial distress due 
to COVID-19, and the floods in New South Wales and Queensland;

• continued to support customers in our Power On hardship program;

•

increased the number of customer accounts across our GreenPower, Green 
Gas, Green LPG and Origin Go Zero products to 340,000, up from 260,000 
in FY2021;

• continued to migrate customers accounts to the Kraken platform, with 

2.2 million successfully migrated as at 30 June 2022;

•

•

supported the domestic east coast gas market through our APLNG 
business; and

launched Origin Zero, our business unit dedicated to supporting our large 
business customers on their decarbonisation journey.

Customers

Strategic Net Promoter Score1

55

44

FY21

FY22

1

12-month average as at June

258 MW

under orchestration in Origin 
Loop, our virtual power plant, up 
from 159 MW in FY2021

Communities

We respect the rights and interests of the communities in which we operate, 
and consult with them to understand and manage our impact.

Getting energy right for our communities

Regional procurement spend 
as % of total spend

1818

2020

FY21

FY22

>$2.6M

Contributed to the community 
by the Origin Energy Foundation

We spent $318 million directly and indirectly with regional suppliers, or 20 per 
cent of our total spend, up from 18 per cent in FY2021.

Our Stretch Reconciliation Action Plan (Stretch RAP) includes a commitment 
to increase the participation of Aboriginal and Torres Strait Islander businesses 
in Origin’s supply chain. In FY2022, our spend with Indigenous suppliers was 
up $7 million to $17 million, bringing our cumulative spend under our three-year 
Stretch RAP to $32.6 million.

We continue to work closely with the Northern Land Council to engage with 
our Native Title holders in the Beetaloo Basin. During the year, we appointed 
a Native Title holder as a Community Liaison Officer to provide ongoing 
engagement with the local community about our activities. We also undertook 
meetings on Country to explain our upcoming work program and sacred site 
clearance and avoidance surveys of our potential future work areas.

Through grants, 7,000 hours of employee volunteering, and our workplace 
giving program, the Origin Energy Foundation contributed over $2.6 million to 
the community in FY2022.

We also committed to a $5 million community fund as part of our support 
for the community as we transition out of coal-fired generation at the Eraring 
Power Station.

14

Annual Report 2022

Getting energy right for the planet

This year we continued updating our emissions reduction targets to be 
consistent with a 1.5°C pathway. We expect to announce our new targets 
before the 2022 Annual General Meeting.

We also announced our intention to put our climate reporting and the new 1.5°C 
pathway targets to a non-binding, advisory vote of shareholders at our 2022 
Annual General Meeting.

During FY2022, we:

•

reduced our Scope 1 and 2 equity emissions by 2 million tonnes, or 
12 per cent;

• announced the potential early closure of the Eraring Power Station, from as 

early as August 2025;

•

•

•

received development approval for a 700 MW battery at the Eraring site;

secured 1,300 MW of solar farm development projects, bringing total to 
1,600 MW;

increased Eraring's ash re-use rate to 73 per cent, up from 36 per cent 
in FY2021;

• collaborated with others to begin developing the green hydrogen Hunter 

Valley Hydrogen Hub;

• attained Climate Active carbon neutral certification for our Origin Go Zero 
(electricity), Carbon Neutral Solar, and Carbon Neutral Demand Response 
products ; and

•

launched Origin 360 EV Car Share.

Our people

Our people are one of our greatest strengths, and having a diverse and inclusive 
workplace is key to the success of our business. We continued to change the 
way we work in response to COVID-19, strengthening Origin’s culture during 
this time. During FY2022, we:

•

reduced Tier 1 and Tier 2 Process Safety Events to two, from 11 in FY2021;

• completed the roll out of our Life Saving Controls program at 

operational sites;

• announced support for the Uluru Statement from the Heart;

•

ranked in the top 10 in Australia in Equileap’s 2022 Gender Equality Global 
Report & Ranking;

• awarded "Gold employer status" at the Australian LGBTQ Inclusion Awards;

•

received an engagement score down 6 per cent to 68 per cent, remains 7 
per cent above the Australia and New Zealand energy industry average; and

• grew our Indigenous talent base, from 35 Aboriginal and Torres Strait 

Islander employees at the beginning of our Stretch RAP in FY2018 to 73 at 
the end of FY2022.

Regrettably our TRIFR deteriorated during the year due to the additional 
constraints wet weather and COVID-19 placed on our field based employees 
and contractors. We undertook a safety stand down to assess these field based 
injuries and continue to focus on providing a safe work environment for all of 
our people.

Our COVID-19 response included extensive workplace health controls, 
including testing in specific situations, a temporary COVID-19 Vaccination 
Policy and detailed social distancing and hygiene controls.

In July 2021, Origin became a signatory to 40:40 Vision, an investor-led 
initiative targeting gender balance in executive leadership by 2030. Under 
the initiative, we have committed to achieving gender balance (40:40:20) in 
executive leadership by 2030.

Planet

Greenhouse gas emissions 
(equity basis, mt CO2-e)

16.516.5

14.514.5

FY21

FY22

Scope 1

Scope 2

1,600 MW

of solar farm development 
projects secured to date

People

Total Recordable Injury
Frequency Rate (TRIFR)

44

2.72.7

FY21

FY22

40.8%

Female Senior Leaders, up from 
34.6% in FY2021 

We continue to focus on supporting the mental health and well being of our people and to develop a range of resources and programs through 
our online Mental Health and Wellbeing Hub.

Operating and Financial Review

15

Financial performance

Statutory Profit ($m)

Underlying Profit ($m)

Underlying EBITDA

407407

2,036
2,036

2,1142,114

(1,429)
(1,429)

314314

(2,281)
(2,281)

FY21

FY22

FY21

FY22

FY21

FY22

Free Cash Flow
(before major growth) ($m)

Adjusted Net Debt ($m)

Final Dividend

1,030
1,030

1,062
1,062

4,639
4,639

2,838
2,838

16.5cps
75% franked

FY21

FY22

Jun-21

Jun-22

Lease liabilities

29cps total FY2022 dividend
(47% of FY2022 Free Cash Flow)

Statutory Profit was impacted by a non-cash impairment associated with accounting for electricity and gas derivative assets. High electricity 
and gas prices meant the hedge transactions that we use to manage price risk significantly increased in value. This increase in hedge value 
resulted in a requirement to recognise an impairment in the underlying business assets which in no way reflects the performance or future 
value of the business.

FY2022 was characterised by unprecedented volatility and elevated prices in global and domestic energy markets. Underlying Profit was 
higher at $407 million with higher earnings from Integrated Gas and lower earnings from Energy Markets. Earnings from Integrated Gas 
increased despite the sale of 10 per cent of APLNG during the period.

Energy Markets earnings were adversely impacted during the period by a material contracted coal supply disruption to the Eraring Power 
Station at a time of high spot electricity prices. Low retail tariffs were set at a time of low customer demand during COVID-19, adding to the 
challenges faced by the electricity business. Our natural gas business performed well with increased earnings primarily driven by rising market 
prices reflected in higher trading sales.

APLNG delivered stable production despite a significant increase in wet weather and well flooding events. APLNG delivered 132 cargoes, up 
from 130 cargoes in the prior period, including 15 spot cargoes, as well as delivering additional gas to the domestic market during a period 
of downstream maintenance and in response to high customer demand in Q4 FY2022. APLNG's realised oil price of US$74/bbl, up from 
US$43/bbl in FY2021 meant that a record cash distribution was paid to Origin.

Free Cash Flow was up $32 million at $1,062 million, driven by record cash distributions from APLNG of $1,595 million partially offset by lower 
earnings from Energy Markets. This as well as $1,957 million from the sale of 10 per cent of Australia Pacific LNG enabled debt reduction of 
$1,801 million while allowing for investment in growth, dividends to shareholders and a $250 million on market share buy-back.

Our partnership with Octopus to transform our retail operations is progressing well, with more than 2.2 million customer accounts migrated 
to the Kraken platform. An additional $80 million in FY2022 and $163 million in August 2022 were invested to restore our 20 per cent interest.

The Board has determined to pay 16.5 cent per share dividend franked to 75% bringing total distributions for the year to 29 cents per share.

16

Annual Report 2022

Energy Markets performance

Underlying EBITDA

Operating cash flow

$365M

$824M

Down $614m or 63% vs FY2021

Down $194m vs FY2021

(1.5%)

Underlying ROCE1
Down 6.1% vs FY2021

Cost to serve

Customer accounts

Retail X

$487M

4,458k

2,200k

Stable vs FY2021

Up 193k vs June 2021

Customer accounts migrated to

the Kraken platform

During the period, we experienced unprecedented energy market conditions with extremely high and volatile electricity prices, driven by 
coal plant outages, high coal and gas fuel costs and wet weather impacted renewable energy generation. These conditions culminated with 
periods of administered wholesale electricity pricing and a temporary electricity spot market suspension in June.

The Electricity business began the year in a strong position to manage these conditions; however, a material coal supply disruption to our 
only coal-fired generation plant, Eraring, at a time of high spot electricity prices resulted in significantly higher energy procurement costs. 
Low retail tariffs added to the unfavourable market conditions, with tariffs set during FY2021 when wholesale prices were at low levels due to 
COVID-19. This resulted in a $692 million reduction in the Electricity Gross Profit.

During June, strong support was received from coal suppliers, rail network providers and the NSW Government to increase rail deliveries 
which uplifted Eraring's output. Coal contracting for FY2023 is progressing and is now more than halfway towards our purchase target of 5 
to 6 million tonnes.

Natural Gas Gross Profit increased by $117 million, driven by higher short-term trading gas sales and repricing of customer tariffs, partly offset 
by higher procurement costs. Our portfolio is underpinned by fixed-price2 supply contracts and is well placed heading into a tightening 
market. The JKM supply position is fully hedged at favourable rates to current market prices and there are no further price reviews on supply 
contracts until FY2024.

We are committed to relieving the pricing impacts on customers where possible. Our principle is to hold FY2023 prices flat for our most 
vulnerable hardship customers who are on the Power On program, and we absorbed some higher energy costs to make sure that most of our 
customers are at or below the DMO and VDO, post product benefits such as market discounts and Solar FiT.

Customer accounts increased by 193,0003, including the acquisition of WINconnect, which added 99,000 customer accounts. Our 
Broadband business grew by 28,000 to 61,000 customer accounts and was named Australia’s best-rated NBN provider of 2022 by 
Canstar Blue.

Our investment in Octopus continues to exceed expectations. Octopus emerged from the recent UK energy crisis with 43 per cent more 
customer accounts, and is now the fifth largest UK retailer with around 15 per cent market share. This has demonstrated the significant 
advantage of Octopus’ low-cost operating model and market-leading Kraken platform in a rapidly changing energy landscape. We have 
migrated more than 2.2 million customer accounts to the Kraken platform and remain on track to achieve the targeted cash cost benefits.

Our ambition is to lead the energy transition to net zero emissions through cleaner energy and customer solutions. We have established the 
Origin Zero business to provide innovative low and zero carbon energy solutions to our customers. We also acquired the large-scale Yarrabee 
Solar Farm development project and received NSW Government development approval for the Eraring large-scale battery.

1

12-month average. Return on Capital Employed (ROCE) is calculated as Adjusted EBIT / Average Capital Employed.

2 Subject to CPI adjustments.
3

Includes 39,000 previously excluded electricity unmetered sites due to an industry change, and around 7,000 customer accounts (post churn) due to recent Retailer of Last 
Resort (ROLR) events that occurred from May 2022 until the end of FY2022.

 
Operating and Financial Review

17

Integrated Gas performance

Underlying EBITDA

Cash distributions 
from APLNG

$1,837M

$1,595M

Up $702m or 62% vs FY2021 

Up $886m or 125% vs FY2021

Underlying EBIT up $539m

15.2%

Underlying ROCE
Up from 4.8% 

in FY2021

APLNG 
production (100%)

693PJ

Average realised LNG price

Capex and opex4/GJ

US$12.5/
MMBtu

$3.2/GJ

Down 1% vs FY2021

Up 103% vs FY2021

11% increase vs FY2021

Up 110% in A$ terms at $16.4/GJ

APLNG delivered record EBITDA and cash distributions to Origin driven by stable production, continued low operating and capital costs 
and high commodity prices. Integrated Gas EBITDA was up $702 million to $1,837 million and APLNG’s cash distributions to Origin were up 
$886 million to $1,595 million.

Record earnings were primarily driven by realised oil prices at APLNG increasing from US$43/bbl (A$58/bbl) in FY2021 to US$74/bbl 
(A$103/bbl) in FY2022. Reflecting the high oil price environment, hedge losses at Origin increased from a gain of $55 million in FY2021 to 
a loss of $189 million in FY2022.

Strong field performance and operational efficiencies enabled APLNG to maintain stable production despite a significant increase in wet 
weather and associated well flooding events. Well availability was stable at around 90 per cent in FY2022, with the wet weather impacts offset 
by implementation of new technology that reduced well defects and failures. High upstream gas processing facility reliability and improved 
performance from network infrastructure, driven by investment in prior periods enabled high utilisation of upstream gas processing capacity.

During the period, APLNG delivered 132 LNG cargoes (up from 130 cargoes in FY2021) including 15 spot cargoes. APLNG also continued 
to supply significant volumes into the domestic market, directing additional gas during June 2022 when the market was experiencing 
particularly high demand.

Operating expenses in APLNG increased, primarily due to higher power costs and higher royalties on the higher revenue base.

Origin announced the sale of a 10 per cent interest in APLNG to ConocoPhillips on 8 December 2021, delivering net proceeds of $2 billion 
after adjustments. Origin retains a 27.5 per cent shareholding in the joint venture and continues the role of upstream operator.

A scheduled price review with an LNG customer was successfully completed in early FY2023, with no material impact on Origin’s earnings.

APLNG 2P (proved plus probable) reserves increased 901 PJ before production, representing reserves replacement of 116 per cent, driven by 
higher estimated recoveries from producing fields. After production and field divestment, 2P reserves increased by 109 PJ.5

Other highlights across Integrated Gas during the period included:

• Beetaloo Basin – Production test results from the Amungee NW 1H well suggest a normalised gas flow rate equivalent of between 5.2 and 
5.8 million cubic feet per day (MMscf/d) per 1,000 metres of lateral. Preparations are underway to continue appraisal of the Velkerri dry 
gas play at Amungee.

• Origin was awarded $45 million from the Australian government to progress several renewable hydrogen projects including the proposed 
Hunter Valley Hydrogen Hub in Newcastle, the Tasmanian Green Hydrogen Hub Project at Bell Bay, and the potential development of a 
green hydrogen supply chain between Japan and Australia out of Gladstone, Queensland.

4 Opex excludes purchases and reflects royalties at the breakeven oil price.
5 Refer to Section 8 for disclosure relating to Tri-Star litigation associated with these CSG interests.

18

Annual Report 2022

3 Our strategy

Our strategy

During the year we made significant progress towards executing our strategy:

• Submitted notice to AEMO giving Origin the ability to close Eraring as early as August 2025 and grew our coal contracting position to 

3 million tonnes for FY2023, of a target of 5 - 6 million tonnes

• Secured 1,300 MW of additional solar farm development projects, bringing total to 1,600 MW

• Progressed plans for a Hunter Valley Hydrogen Hub green hydrogen project

• Obtained approval for the Eraring battery development, now in tendering phase

• Grew our virtual power plant (Loop) to 258 MW across 121,000 connected assets

• Completed sale of 10 per cent interest in Australia Pacific LNG

• Grew total customer accounts by 193,000 to 4.5 million, including through the WINconnect acquisition

• Progressed the transformation of our retail business with 2.2 million customer accounts (over half) migrated to the Kraken platform

• Launched Origin Zero to support large customers on their decarbonisation journey

• Set new short- and medium-term targets aligned with 1.5°C pathway, which will shortly be released as part of Origin’s Climate Transition 

Action Plan

Our business drivers

As a leading integrated energy company, Origin’s earnings drivers are spread across the energy value chain.

Our electricity margin is driven by outperforming the market cost of energy through our supply portfolio (including our power stations and 
supply contracts). Our portfolio of coal and gas generation plants, renewable energy power purchase agreements and market supply and 
hedge contracts provides us with the flexibility to manage energy procurement costs.  As we sell more energy than we generate, we have the 
ability to build or contract renewable energy and storage as the price of renewable energy becomes more competitive.

In natural gas, Origin’s wholesale margin is driven by a strong gas supply portfolio, with pipeline and storage flexibility enabling us to direct 
gas to where it is most needed. A large portion of supply is under long-term contracts that are either fixed-price6 or linked to oil and LNG spot 
prices. Some of our contracts reprice to market over time.

Profitability in energy retailing is driven by managing retail margins through matching retail tariffs with energy procurement costs combined 
with an efficient, low cost operation and the ability to attract and retain customers through providing a superior customer experience. We are 
implementing the Kraken retail system which we believe will further lower our cost base and improve customer service.

We own 20 per cent of Octopus Energy7, a UK-based fast-growing energy technology company. Octopus owns the Kraken technology 
platform which is licensing around the world. Octopus is the fifth-largest energy retailer in the UK.

Origin is the upstream operator and has a 27.5 per cent interest in APLNG, reduced from 37.5 per cent following the sale of a 10 per cent stake 
during the year, which is Australia’s largest CSG to LNG project. It is a significant supplier to both domestic gas and international LNG markets, 
with the majority of volume contracted until approximately 2035. Profitability is underpinned by maintaining a low capital and operating cost 
base relative to revenues, much of which are linked to oil prices. In FY2022, around 76 per cent of APLNG gas volume was sold as LNG (of 
which 89 per cent was under long-term oil-linked contracts).

6 Subject to CPI adjustments.
7 Following CPPIB' investment in Octopus Energy during December 2021, Origin accounted for its interest in Octopus Energy at 18.7 per cent from 1 December 2021 (previously 

20 per cent). An additional $163 million (£94 million) was invested to restore its 20 per cent interest in August 2022.

19 March 20222022 Strategy PresentationOur strategic pillarsOur ambitionENABLEcustomers to decarboniseGROWour portfolio of renewables and cleaner energy REDUCE emissions of our existing operationsUnrivalled customer solutionsAccelerate renewable and cleaner energyDeliver reliable energy through the transitionOur decarbonisation prioritiesTo lead the energy transition through cleaner energy and customer solutionsOur purposeGetting energy right for our customers communities and planetOperating and Financial Review

19

Our strategic pillars

 Our strategy involves three strategic pillars:

Unrivalled customer solutions

We have a leading retail business with 4.5 million customer accounts, delivering a superior customer 
experience at low cost and with churn lower than our Tier 1 competitors.

Our strategy to increase the value of our retail business and enhance customer experience involves:

• adopting a new operating model and migrating customers to the world class Kraken platform, 

delivering a superior customer experience, lower costs, a leaner operation and lower churn. We are 
targeting a $200 - 250 million cash cost reduction from FY2018 baseline by FY2024

•

increasing the breadth of products purchased from us including broadband, solar, batteries, 
connected solutions and E-mobility

• using strong data analytics capability to enable personalised and segmented offers and experiences 

for customers

For our larger business customers, we are working to simplify the energy transition, providing tailored 
energy and decarbonisation solutions through Origin Zero. These solutions can include elements such 
as renewable energy, demand response, solar, batteries, renewables, energy management and electric 
vehicle fleet management.

Through our Octopus Energy investment, we have access to an industry-leading retail platform to 
deliver the lowest costs and market-leading customer happiness, as well as exposure to Octopus’s 
global growth.

Accelerate renewables and cleaner energy

We will invest in clean energy positions to support our customers’ demand for energy and 
decarbonisation solutions. We will increase our renewable energy supply through new investments, 
partnerships, and projects, targeting multi-GW renewable growth opportunities through a staged and 
disciplined investment or contracting approach.

In addition to our significant gas peaking generation portfolio, we will invest in growing our "firming 
capacity" to support the growth of renewables during periods of peak demand and lower renewable 
generation. We have developed a proprietary Virtual Power Plant (VPP) platform to connect and 
use artificial intelligence to orchestrate distributed assets. We are also growing our battery storage 
portfolio options with our first opportunity being the potential development of a 460MW stage 1 battery 
at Eraring.

We are investigating opportunities to invest in cleaner fuels for harder-to-abate sectors, including 
domestic and export green hydrogen projects, targeting domestic green hydrogen supply from the mid 
2020s and export supply from the late 2020s.

Deliver reliable energy through the transition

We have a valuable portfolio of assets that play a critical role in providing customers with reliable and 
affordable energy as we transition to a low-carbon future. We believe gas will remain a key part of the 
energy mix during the transition.

Through our 27.5 per cent interest in APLNG, we continue to be low cost supplier of gas, for domestic 
and export customers. Any development associated with APLNG or our other upstream growth assets 
would only be done in a manner consistent with our decarbonisation commitments.

Our Eraring coal fired power station continues to support the reliability and security of the electricity 
market. We have announced the potential early retirement of Eraring from 2025 as our portfolio and the 
market transitions to cleaner sources of energy and new sources of supply enter the market. We continue 
to investigate opportunities at the Eraring site for further clean energy developments, including batteries.

Our existing thermal peaking generation will continue to play a critical role in providing capacity and 
firming as coal generators such as Eraring retire and are replaced by intermittent renewables.

We have a leading domestic wholesale gas position with the ability to transport gas across the east coast 
to support our gas fired generation fleet as well as residential, business and wholesale customers.

20

Annual Report 2022

4 Guidance

The following guidance is based on current market conditions and the regulatory environment. Ongoing volatility in market conditions is likely 
and may adversely impact operations.

Integrated Gas - APLNG 100%

Production

Capex and opex, excluding purchases1

Unit capex + opex, excluding purchases1

1 Opex excludes purchases and reflects royalties at the breakeven oil price.

Integrated Gas

PJ

A$b

A$/GJ

FY22

FY23 guidance

693

2.2

3.2

680 - 710

2.5 - 2.7

3.5 - 4.0

We estimate production in FY2023 of 680 - 710 PJ (APLNG 100 per cent), reflecting ongoing strong field performance and allowing for the 
impact of recent wet weather events.

We estimate total APLNG capex and opex of $2.5 - $2.7 billion, higher than FY2022, reflecting:

• Exposure to elevated current power costs both through operated upstream operations and non-operated joint ventures;

• Commencement of cyclical upstream major maintenance program on gas processing plants along with continuation of downstream 

cyclical LNG Train maintenance;

•

•

Increased workover activity as we target increased well availability, offsetting natural field decline to fill gas processing capacity; and

Increased well drilling activity to maintain current production levels.

At 2 August 2022, Origin estimates that approximately 43 per cent of APLNG’s FY2023 JCC oil price exposure has been priced at 
US$108/bbl before hedging, based on the long-term LNG contract lags. Based on forward market prices as at 2 August 2022, we estimate 
losses in FY2023 on oil hedging of $290 million and LNG trading of $47 million. The LNG trading result remains subject to the spread between 
European and Asian gas prices, shipping costs and the allocation of cargos in the annual schedule. See Section 6.2.2 for details of Integrated 
Gas oil hedging and LNG trading.

Energy Markets

There remains a wide range of potential earnings outcomes in FY2023. We will continue to assess the outlook with a view to providing an 
update when there is less uncertainty.

We expect higher earnings in FY2023. Earnings from the gas business are expected to be higher on a largely fixed price8 supply portfolio with 
no further price reviews on gas supply contracts until 1 July 2023. We expect electricity gross profit to remain supressed due to rising energy 
costs being only partially priced into regulated tariffs. Coal contracting is partially complete with 4.4 million tonnes now contracted of a target 
of 5 to 6 million tonnes. The contracted coal supplies are from both legacy priced contracts and contracts priced at market forward prices at 
the time of contracting. We remain exposed to risk of under-delivery including due to rail and mine performance. Cost to serve is expected to 
be relatively flat on FY2022, with Kraken benefits being offset by non-repeat of surplus COVID-19 provision release and investment in future 
portfolio growth.

In FY2024 we anticipate further growth in earnings. The magnitude of this growth is dependent on current forward prices being maintained 
and priced into regulated tariffs, and is subject to coal contracting risk and approximately 50 PJ gas price review outcomes. Octopus Energy 
is expected to deliver growth as global licensing revenue ramps up and the UK market stabilises. We expect Retail transformation to deliver 
on our commitment of $200 - $250 million cash cost reduction by FY2024, from an FY2018 baseline.

8 Subject to CPI adjustments.

Operating and Financial Review

21

5 Financial update

5.1 Reconciliation from Statutory to Underlying Profit

Statutory Profit/(Loss) - total operations

Items Excluded from Underlying Profit (post-tax)

Increase/(decrease) in fair value and foreign exchange movements

Oil and gas

Electricity

FX and interest rate

Other financial asset/liabilities

FX gain/(loss) on foreign-denominated financing

Impairment, disposals, business restructuring and other

Total Items Excluded from Underlying Profit (post-tax)

Underlying Profit

FY22
($m)

(1,429)

791

92

713

3

59

(76)

(2,627)

(1,836)

407

FY21
Restated
($m)

(2,281)

(569)

(231)

(348)

13

(114)

111

(2,026)

(2,595)

314

Change
($m)

852

Change
(%)

(37)

1,360

323

1,061

(10)

173

(187)

(601)

759

93

(239)

(140)

(305)

(77)

(152)

(168)

30

(29)

30

Fair value and foreign exchange movements reflect non-cash or non-recurring fair value gains/(losses) associated with commodity hedging, 
interest rate swaps and other financial instruments. These amounts are excluded from Underlying Profit to remove the volatility caused by 
timing mismatches in valuing financial instruments and the underlying transactions they relate to.

• Oil and gas derivatives manage exposure to fluctuations in the underlying commodity price to which Origin is exposed through its gas 
portfolio and indirectly through Origin’s investment in APLNG. See Section 6.2.2 for details of Origin’s APLNG-related oil hedging.

• Electricity derivatives, including swaps, options and forward purchase contracts, are used to manage fluctuations in wholesale electricity 

and environmental certificate prices in respect of electricity purchased to meet customer demand.

• Foreign exchange and interest rate derivatives manage exposures associated with the debt portfolio. A portion of debt is euro-

denominated and cross-currency interest rate swaps hedge that debt to AUD.

• Other financial assets/liabilities reflects investments held by Origin.

• Foreign exchange on foreign-denominated financing reflects currency fluctuations on unhedged USD debt. Debt is maintained in USD to 

offset the USD-denominated investment in APLNG, which delivers USD cash distributions.

Impairment, disposals, business restructuring and other are either non-cash or non-recurring items and are excluded from Underlying Profit 
to better reflect the underlying performance of the business. They include:

Impairments

Impairment - Energy Markets

Business restructuring

Disposals

Loss on divestment - APLNG equity accounted investment

Loss on divestment - other assets

Other

Net capital gains tax on divestment - APLNG

LGC net shortfall charge

Deferred tax liability recognition net of reversal pertaining to divestment - APLNG

Provision for legal matters

Onerous contracts - LNG

WINconnect other income

Gain on dilution of investment - Octopus Energy

Impairment, disposals, business restructuring and other

FY22
($m)

(2,196)

(2,196)

(58)

(114)

(113)

(1)

(259)

(172)

(151)

(39)

(22)

34

47

44

(2,627)

$2,196 million impairment of Energy Markets: Recent extraordinary market conditions have resulted in an uplift in the value of in-the money 
derivative assets of $4,354 million associated with the hedging of high wholesale electricity and gas prices results. The carrying value of the 
Energy Markets business is assessed independently of the derivatives, and accordingly, a non-cash impairment of Energy Markets has been 
recorded. This impairment will impact goodwill only, accordingly there is no tax impact. This impairment does not reflect the performance of 
the business and its cash flows, nor impact future value.

22

Annual Report 2022

• $113 million loss on the divestment of 10 per cent interest in APLNG. At completion, the impairment reported within the Interim Report 

2022 of $193 million was partially offset by a net gain of $80 million. The net gain comprises the release of $105 million benefit from the 
foreign currency translation reserve, partially offset by FX hedging costs and other completion adjustments amounting to $25 million. Refer 
to Note B2.1 of the Financial Statements for further information;

• $172 million capital gains tax expense on divestment of 10 per cent share of APLNG, net of $222 million benefit from capital losses. The 

cash tax payment will be lower than the net capital gains tax of $172 million as a result of offsetting tax deductions;

• $151 million net cost relating to a decision to defer the surrender of a portion of Origin’s calendar year 2021 large-scale generation 
certificates and the expected deferral in relation to calendar year 2022. The costs associated with this deferral are expected to be 
recovered in future periods. Refer to Appendix for further details;

• $39 million non-cash deferred tax expense, recognised net of the reversal of the booked amount to the divested share of APLNG, reflecting 

the expectation of higher future distributions from APLNG. Refer to Appendix for further details;

• $34 million non-cash benefit relating to revaluation of the LNG onerous contract provisions, due to stronger near-term assumptions for 
LNG prices relative to Henry Hub prices and an increase in long-term assumptions for US Treasury bond rates. The realised loss for the 
period associated with these contracts is recognised in Underlying Profit;

• $47 million in relation to Master Service Agreement (MSA) income earned as part of the acquisition of WINconnect; and

• $44 million non-cash gain on dilution of Origin's stake in Octopus associated with CPPIB's acquisition of a six per cent stake in Octopus;

The nature of Items Excluded from Underlying Profit set out in the above table have been reviewed by our auditor for consistency with the 
description in Note A1 of the Financial Statements.

Prior period restatements

The prior period has been restated for the following items. Refer to Note G11 of the Financial Statements for details of these restatements.

•

•

IFRIC agenda decision - Configuration or Customisation Costs in a Cloud Computing Arrangement - SaaS restatement;

IFRIC agenda decision - Economic Benefits from Use of a Windfarm (IFRS 16 Leases) - PPAs restatement; and

• Certain amounts have been restated to reflect adjustments to the results of our equity accounted investment in Octopus Energy.

5.2 Underlying Profit

Energy Markets

Integrated Gas - Share of APLNG

Integrated Gas - Other

Corporate

Underlying EBITDA

Underlying depreciation and amortisation (D&A)

Underlying share of ITDA of equity accounted investees

Underlying EBIT

Underlying interest income - MRCPS

Underlying interest income - Other

Underlying interest expense

Underlying profit before income tax and non-controlling interests

Underlying income tax expense

Non-controlling interests’ share of Underlying Profit

Underlying Profit

Underlying EPS

Underlying ROCE - rolling 12 month

FY22
($m)

365

2,134

(297)

(88)

2,114

(449)

(1,138)

527

48

13

(187)

401

10

(4)

407

23.2cps

7.6%

FY21
Restated
($m)

979

1,145

(10)

(78)

2,036

(541)

(956)

539

106

3

(242)

406

(90)

(2)

314

17.8cps

4.4%

Change
($m)

(614)

989

(287)

(10)

78

92

(182)

(12)

(58)

10

55

(5)

100

(2)

93

5.4cps

Change
(%)

(63)

86

2,870

13

4

(17)

19

(2)

(55)

333

(23)

(1)

(111)

100

30

30

3.2%

Refer to Sections 6.1 and 6.2 respectively for Energy Markets and Integrated Gas analysis.

Corporate costs increased by $10 million, primarily reflecting unfavourable movements in foreign exchange and higher corporate insurance 
costs, partially offset by lower ERP costs.

Underlying D&A decreased by $92 million, driven primarily by the lower asset base following the FY2021 generation asset impairment, 
partially offset by the impact of increased depreciation ($25 million) following the reassessment of Eraring's useful life.

Underlying share of ITDA increased $182 million, driven by higher ITDA from APLNG ($169 million), comprising higher tax expense 
($350 million), lower net interest expense ($88 million), and lower depreciation and amortisation ($93 million). These were partly offset by the 
increase in ITDA from the full year impact of Origin’s equity share of Octopus Energy ($12 million).

Underlying MRCPS interest income decreased $58 million with the principal balance fully repaid during the year following buy-backs by 
APLNG, and a higher AUD/USD exchange rate.

Operating and Financial Review

23

Underlying net interest expense decreased $65 million, reflecting a lower net debt balance and refinancing activities.

5.3 Cash flows

Operating cash flow

Underlying EBITDA

Underlying equity accounted share of EBITDA (non-cash)

Other non-cash items in Underlying EBITDA

Underlying EBITDA adjusted for non cash items

Change in working capital

Energy Markets - excluding futures exchange collateral

Energy Markets - futures exchange collateral

Integrated Gas - excluding APLNG

Corporate

Other

Tax (paid)/refunded

Cash flow from operating activities

FY22
($m)

2,114

(2,097)

118

135

590

68

471

48

3

(167)

(27)

531

FY21
($m)

2,036

(1,141)

114

1,009

68

(29)

110

(2)

(11)

(144)

31

964

Change
($m)

Change
(%)

78

(956)

4

(874)

522

97

361

50

14

(23)

(58)

(433)

4

84

4

(87)

768

(334)

328

n/a

(127)

16

(187)

(45)

Operating cash flow decreased $433 million, driven by lower Underlying EBITDA adjusted for non-cash items ($874 million) partially offset 
by an improved working capital position ($522 million).

Underlying equity accounted share of EBITDA (non-cash) reflects share of APLNG ($2,134 million) less share of Octopus Energy ($36 million 
loss). Other non-cash expenses include provisions for bad and doubtful debts (+$65 million), share-based remuneration (+$29 million) and 
exploration expense (+$24 million).

Working capital moved favourably by $590 million in the period driven primarily by a favourable movement in futures exchange collateral.

Futures exchange collateral relates to cash received from the futures exchange associated with in-the-money forward electricity hedge 
positions. FY2022 included $471 million of cash collateral received from the favourable movement in the value of open energy futures 
hedging contracts. The cash flows from favourable futures contracts and security deposits arose during a period of higher prices in domestic 
energy markets at the end of the financial year. Subsequent value movements will depend on forward energy prices.

Other reflects the cash impact of items excluded from Underlying Profit, primarily the 2021 LGC shortfall charge. Refer to Appendix 2 for 
further details.

Investing cash flow

Capital expenditure

Distribution from APLNG

Interest received from other parties

Investments/acquisitions

Disposals

Cash flow from investing activities

FY22
($m)

(336)

1,595

2

(392)

1,963

2,832

FY21
($m)

(339)

709

3

(161)

7

219

Change
($m)

3

886

(1)

(231)

1,956

2,613

Change
(%)

(1)

125

(33)

143

27,943

1,193

We continue to tightly manage our capital spend, with FY2022 capital expenditure of $336 million remaining flat, and comprising:

• generation maintenance and sustaining capital ($92 million), primarily at Eraring ($73 million) and Shoalhaven ($6 million);

• other sustaining capital ($87 million) including spend in preparation for the move to five-minute settlement of pool prices ($15 million), LPG 

($31 million), and Origin ERP system replacement ($13 million);

• productivity/growth ($92 million) including deferred and contingent licensing payment to Octopus Energy ($30 million), other Kraken 

implementation costs ($20 million), and Community Energy Services ($8 million); and

• exploration and appraisal spend ($65 million) primarily related to the appraisal programs in the Beetaloo and Canning Basins.

Cash distributions from APLNG amounted to $1,595 million comprising $50 million of MRCPS interest (down from $110 million in FY2021), 
$1,112 million of MRCPS buy-backs (up from $599 million in FY2021), and unfranked dividends of $433 million, which commenced once 
MRCPS were fully redeemed during the year.

Investments include deferred and contingent consideration for the equity interest in Octopus Energy ($268 million), WINconnect 
($92 million9), Yarrabee Solar Farm ($14 million) and Carisbrook Solar Farm ($5 million), as well as investments in Future Energy and LPG.

Disposals relate primarily to the sale of the 10 per cent interest in APLNG.

9 Reflects purchase price of $94 million and completion adjustments of $11 million, net of $13 million cash and cash equivalents received.

24

Annual Report 2022

Financing cash flow

Net proceeds/(repayment) of debt

Operator cash call movements

AEMO cash deposits

On-market purchase of shares

Close out of foreign currency contracts

APLNG loan (repayment)/proceeds1

Interest paid

Payment of lease liabilities

Dividends paid

Total cash flow from financing activities

Effect of exchange rate changes on cash

FY22
($m)

(1,856)

(70)

(290)

(325)

(46)

(51)

(191)

(73)

(314)

(3,216)

1

FY21
($m)

(1,042)

(90)

-

(96)

(65)

(3)

(234)

(76)

(343)

(1,949)

(2)

Change
($m)

Change
(%)

(814)

20

(290)

(229)

19

(48)

43

3

29

(1,267)

3

78

(22)

n/a

239

(29)

n/a

(18)

(4)

(8)

65

(150)

1 APLNG - loan (repayment)/proceeds represents cash generated by APLNG as part of its normal business operations deposited to a project finance debt service reserve 

accounts. Upon issuance of a bank guarantee to APLNG by Origin the cash was distributed to Origin by way of a loan.

Repayment of debt reflects capital market debt repaid from the proceeds of the sale of 10 per cent interest in APLNG, Free Cash Flow and 
cash held.

Operator cash call movements represent the movement in funds held and other balances relating to Origin's role as the upstream operator 
of APLNG.

Australian Energy Market Operator (AEMO) cash deposits relates to cash security deposits placed with AEMO to support the Company’s 
energy purchases from national electricity and gas markets. This obligation is typically satisfied by bank guarantees; however, the obligation 
was partially met with cash in FY2022.

On-market purchase of shares represents the purchase of shares connected with the on-market share buyback of $250 million, the employee 
share remuneration schemes and the Dividend Reinvestment Plan (DRP).

Settlement of foreign currency contracts represents the partial closure of contracts executed in prior periods to monetise the value in certain 
cross-currency interest rate swap contracts. The value of outstanding contracts as at 30 June 2022 was $48 million.

Operating and Financial Review

25

Free Cash Flow

Free Cash Flow represents cash flow available to pay dividends, repay debt, invest in major growth projects or return surplus cash to 
shareholders. This is prepared on the basis of equity accounting of APLNG. Specific items may be excluded from Free Cash Flow, to better 
represent cashflows from the underlying business. In FY2022 there was a significant cash inflow for futures exchange collateral which is 
expected to unwind. Proceeds from the sale of 10 per cent of APLNG were also excluded.

In FY2022, consistent with previous years, cash payments associated with the Octopus Energy equity investment and Kraken licence 
implementation costs ($318 million) were considered to be Major Growth and were excluded from FY2022 Free Cash Flow.

Energy Markets

Integrated Gas
- Share 
of APLNG

Integrated
Gas - Other

Corporate

Total

($m)

Underlying EBITDA

Non-cash items

Change in working capital

Other

Tax (paid) /refunded

Operating cash flow

Capital expenditure

Cash distribution from APLNG

(Acquisitions)/disposals

Interest received

Investing cash flow

Interest paid

Free Cash Flow including major growth

Major growth spend

APLNG proceeds

Futures exchange collateral

Free Cash Flow

5.4 Shareholder returns

FY22

FY21

FY22

FY21

979

2,134

1,145

FY21

FY22

FY21

FY22

FY21

(10)

(88)

(78)

2,114

2,036

365

112

539

101

81

(192)

(143)

-

-

824

1,018

(261)

(263)

-

-

(386)

(155)

-

-

(647)

(418)

-

177

318

-

(471)

24

-

600

191

-

(110)

681

(2,134)

(1,145)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

FY22

(297)

31

48

25

-

(193)

(69)

1,595

1,957

-

6

(2)

(4)

-

(10)

(60)

709

-

-

12

3

-

(27)

(100)

(6)

-

-

2

11

(1,979)

(1,027)

(11)

3

31

(44)

(16)

-

1

3

590

(167)

(27)

531

68

(144)

31

964

(336)

(339)

1,595

1,571

2

3,483

649

(4)

(12)

2,832

-

-

(191)

(234)

(191)

(234)

3,290

638

(295)

(289)

3,172

-

(1,957)

-

-

-

-

-

-

-

-

-

-

318

(1,957)

(471)

(110)

1,333

638

(295)

(289)

1,062

1,030

709

(154)

3

219

949

191

-

The Board has determined a partially franked final dividend of 16.5 cents per share. The dividend will be franked to 75 per cent. This brings 
Origin’s total distributions to shareholders for FY2022 to 29 cents per share, representing 47 per cent of Free Cash Flow. The final dividend 
will be paid on 30 September to shareholders registered as at 7 September 2022.

During the period, $318 million was incurred in respect of the investment in Octopus Energy and the costs associated with the Kraken 
system implementation. This has been treated as major growth expenditure and excluded from Free Cash Flow when measuring the dividend 
pay-out percentage.

As the company has returned to a tax paying position, we expect future dividends to be either fully or partially franked.

Origin will seek to deliver sustainable shareholder returns through the business cycle and will target a payout range of 30 per cent to 50 per 
cent of Free Cash Flow per annum in the form of ordinary dividends. Free Cash Flow is defined as cash from operating activities and investing 
activities (excluding major growth projects), less interest paid. Remaining cash flow will be applied to further debt reduction, value accretive 
organic growth and acquisition opportunities, and/or additional capital management initiatives.

The dividend payout ratio of 47 per cent is within the 30 per cent to 50 per cent target range as Free Cash Flow during the period, with Free 
Cash Flow adjusted for both the proceeds from the sale of the 10 per cent stake in APLNG and a large in-the-money collateral position on 
electricity futures hedge contracts. This collateral position is expected to reverse in future periods as the hedge contracts settle.

The Board maintains discretion to adjust shareholder distributions for economic and business conditions.

Given the Company’s continued focus on capital management, the Board has taken the decision to suspend the dividend reinvestment plan 
until further notice.

26

Annual Report 2022

5.5 Capital management

During FY2022, the following capital management initiatives were completed:

• Repaid and extended the tenor of our debt facilities:

– repaid €800 million (A$1,164 million) 2.8 per cent effective interest rate debt;

– repaid US$500 million (A$680 million) 5.5 per cent fixed interest rate debt; and

– extended the tenor of A$2,357 million bank loan from FY2024/FY2025 to FY2026/FY2027.

• Extended the tenor of A$500 million of bank guarantee facilities from FY2023/FY2025 to FY2025/FY2026.

• Cancelled $65 million in undrawn bank loan facilities that were surplus to requirements.

• Completed a $250 million on-market buy back of ordinary shares.

Adjusted Net Debt

Movements in Adjusted Net Debt ($m)

(531)
(531)

(1,595)
(1,595)

336336

4,639
4,639

(1,571)
(1,571)

325325

314314

161161

189189

2,838
2,838

281281

290290

30 June
2021

Operating
cash flow

Net cash
from APLNG

Capex

Net
acquisitions /
disposals

Net interest
payments

Dividend

Recognition/
revaluation
of lease
liability

Purchase of
shares on
market

AEMO cash
deposits

FX/Other

30 June
2022

Adjusted Net Debt decreased $1,801 million, driven by operating cash flow, cash distributions from APLNG and the proceeds from the sale of 
10 per cent of APLNG. Operating cash flow of $531 million included $471 million of cash collateral received from the favourable movement in 
the value of open energy futures hedging contracts. The amount of the futures exchange collateral received was partially offset by a financing 
cash outflow of $290 million for cash security deposits placed with AEMO to support Origin's energy purchases from national electricity and 
gas markets.

Purchase of shares on market includes the $250 million on-market share buyback, and shares purchased to meet employee share 
remuneration programs and the DRP.

Foreign exchange/other primarily reflects the non-cash translation of unhedged USD debt and fees ($104 million), operator cash call 
movements ($88 million), repayment of APLNG loan ($51 million and settlement of foreign currency contracts ($46 million).

Origin aims to maintain an Adjusted Net Debt/Adjusted Underlying EBITDA ratio of 2.0 - 3.0x and a gearing10 target of 20 per cent to 30 per 
cent. At 30 June 2022, these ratios were 1.9x and 22 per cent respectively, reflecting the sale of a 10 per cent interest in APLNG during the year 
with the proceeds applied to debt reduction, distributions from APLNG of $1,595 million and favourable working capital movement associated 
with futures exchange collateral.

Our long-term credit profile is Baa2 (stable) from Moody’s.

10 Gearing is Adjusted Net Debt divided by Adjusted Net Debt plus Equity.

Operating and Financial Review

27

Debt maturity profile
- excluding lease liabilities (A$bn)

Debt portfolio management

Average term to maturity increased from 3.4 years at 30 June 
2021 to 4.4 years at 30 June 2022. The average interest rate on 
drawn debt remained unchanged at 4.3 per cent for both FY2021 
and FY2022.

As at 30 June 2022, Origin held $0.6 billion11 of cash and $2.7 billion 
in committed undrawn debt facilities. This liquidity position of 
$3.3 billion is held to meet near-term debt and lease liability payment 
obligations of $0.3 billion and to maintain a sufficient liquidity buffer.

2.5

2.0

1.5

1.0

0.5

0

FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32+

Capital Markets
Debt & Term Loan

Loans and Bank
Guarantees - Drawn

Loans and Bank
Guarantees -
Undrawn

APLNG funding

During construction of APLNG, shareholders contributed capital via 
ordinary equity and the investment in preference shares (termed MRCPS) issued by APLNG. APLNG distributed funds to shareholders firstly 
via fixed dividends of 6.37 per cent per annum on the MRCPS balance, recognised as interest income by Origin, and secondly via buy-backs 
of MRCPS (refer to Section 5.3 above). The MRCPS were entirely bought back in the year ended 30 June 2022 and subsequent distributions 
from APLNG during the year were received via unfranked dividends ($433 million).

APLNG also funded construction via US$8.5 billion (APLNG 100 per cent) in project finance facilities. These facilities were partially refinanced 
in FY2019. The outstanding balance at 30 June 2022 was US$5,410 million (A$7,851 million), net of unamortised debt fees of US$51 million 
(A$74 million). APLNG’s average interest rate associated with its project finance debt portfolio for FY2022 was 3.1 per cent.

Gearing12 in APLNG was 21 per cent as at 30 June 2022, down from 26 per cent at 30 June 2021. 

APLNG project finance debt amortisation profile

Closing balance as at 30 June

(US$m)

Bank loan (variable)

US Exim

USPP

Total

2022

2023

2024

2025

2026

2027

2028

2029

2030

1,689

1,407

1,772

1,519

1,153

1,247

871

965

587

679

265

382

-

162

2,000

2,000

1,940

1,887

1,787

1,690

1,437

5,461

4,927

4,340

3,722

3,052

2,337

1,599

-

-

930

930

-

-

297

297

11 Excludes $48 million cash held on behalf of APLNG as upstream operator.
12 Gearing is defined as project finance debt less cash, divided by project finance debt less cash plus equity.

 
 
28

Annual Report 2022

6 Review of segment operations

6.1 Energy Markets

Origin’s Energy Markets business comprises one of Australia’s largest energy retail businesses by customer accounts, Australia’s largest fleet 
of gas-fired peaking power stations supported by a substantial contracted fuel position, a growing supply of contracted renewable energy 
and Australia’s largest power station, the black coal-fired Eraring Power Station.

The business reports on an integrated portfolio basis. Electricity and Natural Gas Gross Profit and cost to serve are reported separately, as are 
the EBITDA of the Solar and Energy Services, Future Energy and LPG divisions, and our 20 per cent13 share of earnings from Octopus Energy.

6.1.1 Financial summary

Electricity Gross Profit

Natural Gas Gross Profit

Electricity and Natural Gas cost to serve

LPG EBITDA

Solar and Energy Services EBITDA

Future Energy EBITDA

Share of EBITDA from Octopus Energy

Underlying EBITDA

Underlying EBIT

FY22
($m)

207

564

(487)

92

52

(28)

(36)

365

(111)

FY21
($m)

899

447

(489)

89

55

(19)

(3)

979

432

Change
($m)

(692)

117

2

3

(3)

(9)

(33)

(614)

(543)

Change
(%)

(77)

26

(0)

4

(6)

51

1,059

(63)

(126)

13 Following CPPIB' investment in Octopus Energy during December 2021, Origin accounted for its interest in Octopus Energy at 18.7 per cent from 1 December 2021 (previously 

20 per cent). An additional $163 million (£94 million) was invested to restore its 20 per cent interest in August 2022.

Fuel Supply•••GasCoalLPGTransportation •Flexible contracted gas transport arrangements  Generation •••1 black coal generatorAustralia’s largestgas-fired fleetGrowing contracted renewables•••Retail (consumer and SME)Business (commercial and industrial)Wholesale Networks •RegulatedCustomers  Energy Markets operationsElectricity –$692 millionGas +$117 millionFY2021Cost of energyWholesale  pricesNetwork costs / otherVolumesShort-term trading salesRepricing of  customer  tariffsContract roll off & price reviewsVolumesCost to serveOctopus, S&ES, LPG, Future EnergyFY2022979(325)(439)71111684(71)(13)2(41)365Movements in Underlying EBITDA ($m)Operating and Financial Review

29

6.1.2 Electricity

Volume summary

Volumes sold
(TWh)

NSW1

Queensland

Victoria

South Australia

Total volumes sold

FY22

Retail

Business

7.6

4.1

2.9

1.3

15.9

8.1

4.2

5.0

2.3

19.6

Total

15.7

8.3

7.9

3.7

35.5

FY21

Retail

Business

7.9

4.3

2.8

1.3

16.3

8.6

3.7

3.2

1.8

17.3

Total

16.4

8.0

6.1

3.1

33.5

Change
(TWh)

(0.8)

0.3

1.8

0.6

1.9

Change
(%)

(4.6)

3.7

29.9

19.3

5.8

1 Australian Capital Territory customers are included in New South Wales.

Gross Profit summary

Revenue

Retail (residential/SME)

Business

Cost of goods sold

Network costs

Energy procurement costs

Gross Profit

Gross margin %

FY22

$m

7,125

4,148

2,977

(6,918)

(3,271)

(3,647)

207

2.9%

$/MWh

200.8

260.6

152.1

(194.9)

(92.2)

(102.8)

5.8

FY21

$m

7,136

4,382

2,754

(6,237)

(3,156)

(3,081)

899

12.6%

$/MWh

212.7

269.6

159.3

(185.9)

(94.1)

(91.9)

26.8

Change
(%)

Change
($/MWh)

(0.1)

(5.3)

8.1

(10.9)

(3.7)

(18.4)

(76.9)

(76.9)

(12.0)

(8.9)

(7.2)

(9.0)

1.9

(10.9)

(21.0)

Electricity Gross Profit decreased by $692 million driven by:

Sources and uses of electricity (TWh)

• $21/MWh decrease in unit margins (-$693 million):

– -$315 million due to higher generation fuel costs. Unit fuel 

costs increased from $47.9/MWh to $68.2/MWh, driven by 
higher coal costs as the material under-delivery of contracted 
coal from our primary supplier resulted in coal purchases at 
significantly higher prices. High electricity spot prices and 
colder weather towards the end of FY2022 also resulted 
in increased gas generation, with gas purchased at high 
market prices;

– -$124 million due to higher electricity procurement costs, 

largely reflecting higher unit net pool costs which increased 
from $45.5/MWh to $99.2/MWh, and higher volumes of 
market contracts. Lower output from Eraring due to coal 
supply disruption required replacement electricity purchased 
in the spot and contract markets;

– These higher costs were partially offset by lower cost of 

capacity hedge contracts as more expensive legacy contracts 
rolled off, lower unit cost of market contracts due to the 
timing of the sale and purchase of swaps, and lower bundled 
renewable PPA costs with Stockyard Hill volumes replacing 
more expensive legacy contracts;

– -$325 million related to lower wholesale prices flowing into 

customer tariffs, which were set during FY2021 with a period 
of low wholesale prices due to the impacts of COVID-19; and

– +$71 million from improved value management (+$48 million), 
recovery of FY2021 network costs (+$37 million), partially 
offset by metering costs under recovered (-$14 million).

40

30

20

10

0

FY21
Sources

FY22
Sources

FY21
Uses

FY22
Uses

Solar FiT

Renewables

Coal (Eraring)

Gas

Other

Swap contracts

Short position

Business

Retail

Losses

• Volumes increased 1.9 TWh, reflecting a 2.3 TWh increase in 
business volumes, partially offset by a 0.3 TWh decrease in 
retail volumes, with a +$1 million impact to Gross Profit. Higher 
business volumes are driven by net customer wins, and lower 
residential demand largely reflecting continued uptake in solar and energy efficiency.

Owned and contracted generation output of 18.7 TWh was lower by 1.7 TWh, primarily driven by lower Eraring output (-2.3 TWh) due to 
coal supply constraints. Gas generation was higher (+0.3 TWh) primarily to offset lower coal generation. Generation from renewable PPAs 
increased (+0.3 TWh) largely due to Stockyard Hill volumes received while ramping up production. Refer to the Electricity Supply table on 
the following page.

30

Annual Report 2022

Wholesale energy costs

Fuel cost1

Generation operating costs

Owned generation1

Net pool costs2

Bundled renewable PPA costs3

Market contracts3

Solar feed-in tariff

Capacity hedge contracts

Green schemes (excl. PPAs)

Other

$m

1,057

235

1,293

363

271

727

207

226

535

24

FY22

FY21

TWh

$/MWh

15.5

15.5

15.5

3.7

3.2

11.9

2.3

68.2

15.2

83.4

99.2

84.8

60.9

90.9

$m

837

240

1,078

230

282

485

203

308

484

12

TWh

$/MWh

17.5

17.5

17.5

5.1

3.0

7.7

1.9

47.9

13.8

61.7

45.5

95.3

62.9

106.1

Energy procurement costs

3,647

36.64

99.7

3,081

35.14

87.9

1

Includes volume from internal generation and contracted from Pelican Point.

2 Net pool costs includes gross pool purchase costs net of pool revenue from generation, gross and net settled PPAs, and other contracts.

3 Bundled PPAs includes cost of electricity and renewable certificates. Market contracts include swap and energy hedge contracts.

4 Volume differs from sales volume due to energy losses of 1.1 TWh (FY2021: 1.6 TWh).

FY22

FY21

Change

Type1

Output

Pool revenue

Output

Pool revenue

Output

Pool revenue

(GWh)

($m)

($/MWh)

(GWh)

($m)

($/MWh)

(GWh)

($m)

($/MWh)

Nameplate
capacity
(MW)

2,922

2,880 Black Coal

10,966

1,668

152

13,276

1,008

76

(2,310)

660

Electricity supply

Eraring

Units 1 - 4

Gas Turbine

Darling Downs

Osborne2

Uranquinty

Mortlake

Mount Stuart

Quarantine

Ladbroke Grove

Roma

Shoalhaven

42 OCGT

644 CCGT

180 CCGT

664 OCGT

584 OCGT

423 OCGT

235 OCGT

80 OCGT

80 OCGT

-

1,871

606

301

458

70

95

42

55

240 Pump/hydro

153

-

475

105

94

90

49

27

9

19

35

-

-

254

1,696

173

312

196

708

280

219

357

230

379

142

512

35

129

82

47

122

-

147

22

36

43

22

16

9

10

10

Internal generation

6,052

14,617

2,571

176 16,420

1,323

Pelican Point

240 CCGT

885

Renewable PPAs

1,0053 Solar / Wind

3,196

Owned and
contracted
generation

7,297

18,697

1,050

2,959

20,429

1 OCGT stands for open cycle gas turbine; CCGT stands for combined cycle gas turbine.

2 Origin has a 50 per cent interest in the 180 MW plant and contracts 100 per cent of the output.

3 Nameplate capacity does not include Stockyard Hill as it is not yet generating at full capacity.

76

-

167

116

56

111

89

155

112

138

151

95

-

87

58

255

85

619

125

106

219

79

81

-

176

226

159

(54)

34

(34)

(39)

8

32

-

328

83

58

46

27

10

1

9

26

(1,803)

1,248

(165)

261

(1,707)

Operating and Financial Review

31

6.1.3 Natural Gas

Volume summary

Volume sold (PJ)

Retail

Business

FY22

NSW1

Queensland

Victoria

South Australia2

External volumes sold

Internal sales (generation)

Total volumes sold

12.2

3.1

23.6

5.4

44.2

19.5

71.9

40.3

12.1

143.9

Total

31.7

75.0

63.8

17.5

188.1

41.4

229.4

1 Australian Capital Territory customers are included in New South Wales.

2 Northern Territory and Western Australia customers are included in South Australia.

FY21

Retail

Business

12.1

3.3

24.8

5.7

45.9

24.1

66.8

46.3

9.8

147.0

Total

36.2

70.1

71.1

15.5

192.9

38.4

231.3

Change
(PJ)

Change
(%)

(4.5)

4.9

(7.3)

2.0

(4.9)

3.0

(1.8)

(12)

7

(10)

13

(3)

8

(1)

Gross Profit summary

Revenue

Retail (residential/SME)

Business

Cost of goods sold

Network costs

Energy procurement costs

Gross Profit

Gross margin %

FY22

$m

2,769

1,185

1,584

(2,205)

(749)

(1,456)

564

20.4%

$/GJ

14.7

26.8

11.0

(11.7)

(4.0)

(7.7)

3.0

FY21

$m

2,455

1,148

1,307

(2,008)

(789)

(1,218)

447

18.2%

$/GJ

12.7

25.0

8.9

(10.4)

(4.1)

(6.3)

2.3

Change
(%)

Change
($/GJ)

13

3

21

(10)

5

(20)

26

12

2.0

1.8

2.1

(1.3)

0.1

(1.4)

0.7

Natural Gas Gross Profit increased $117 million driven by:

Sources and uses of gas (PJ)1

• +$116 million due to increased volumes and prices on short-term 
trading sales, particularly in the second half of the year, net of 
higher procurement costs;

• +$84 million due to retail and business customer tariff repricing, 

reflecting the recovery of higher costs;

•

-$71 million reflecting supply contract price reviews and the 
expiry of long-term supply contracts; and

• 4.9 PJ decrease in external sales volume (-$13 million) due 

to expiration of business contracts, reduced residential usage 
driven by warmer than average weather, and COVID-19 impacts, 
partly offset by new sales for business customers.

250

200

150

100

50

0

FY21
Sources

FY22
Sources

FY21
Uses

FY22
Uses

APLNG - fixed price

Other fixed price

Oil/JKM linked

Retail

Business - C&I

Business - Wholesale

Generation

1 Fixed price contracts are subject to CPI adjustments.

32

Annual Report 2022

6.1.4 Electricity and Natural Gas cost to serve

Cost to maintain ($ per average customer)1

Cost to acquire/retain ($ per average customer)1

Electricity and Natural Gas cost to serve ($ per average customer)1

Maintenance costs ($m)

Acquisition and retention costs ($m)2

Electricity and Natural Gas cost to serve ($m)

FY22

(97)

(39)

(135)

(348)

(139)

(487)

1 Represents cost to serve per average customer account, excluding CES accounts.

2 Customer wins (FY2022: 480,000; FY2021: 484,000) and retains (FY2022: 1,244,000; FY2021: 1,441,000).

Labour

Bad and doubtful debts

Other variable costs

Retail and Business

Wholesale

Corporate services and IT

Electricity and Natural Gas cost to serve

FY22
($m)

(150)

(58)

(128)

(337)

(52)

(99)

(487)

FY21

(100)

(36)

(136)

(359)

(130)

(489)

FY21
($m)

(136)

(83)

(102)

(321)

(56)

(112)

(489)

Change
($)

Change
(%)

4

(2)

1

11

(9)

2

(4)

6

(1)

(3)

7

(0)

Change
($)

Change
(%)

(14)

25

(26)

(15)

4

13

2

11

(30)

25

5

(8)

(12)

(0)

Electricity and Natural Gas cost to serve has reduced by $2 million, primarily driven by a $10 million release of surplus COVID-19 Business 
Energy bad and doubtful debt provision, lower wholesale, corporate services and IT costs, partially offset by higher labour costs while running 
dual Retail businesses during the migration of customers to the Kraken platform.

Bad debt expense as a percentage of total Electricity and Natural Gas revenue decreased to 0.59 from 0.87 in FY2021. This included a 
$10 million release of surplus provision recognised in FY2020 relating to COVID-19. Normalising for this, the Bad debt expense ratio would 
be 0.69.

We continue to target a $200 – $250 million reduction in operating and capital cost savings from FY2018 baseline by FY2024. $170 million 
cash cost savings have been achieved to date, with further savings on operating costs related to the adoption of Kraken platform and operating 
model expected over FY2023 - 24.

Customer accounts

Customer accounts ('000) as at

30 June 2022

30 June 2021

Electricity

NSW2

Queensland

Victoria

South Australia3

Natural Gas

NSW2

Queensland

Victoria

South Australia3

Total electricity and natural gas

Rolling average customer accounts

Broadband

LPG

Other5

2,7331

1,193

674

608

257

1,277

379

178

495

226

4,0104

3,922

61

368

20

2,625

1,175

637

566

246

1,249

350

178

492

228

3,874

3,855

33

359

-

Total customer accounts

4,4581

4,266

1

Includes an additional 39,000 previously excluded electricity unmetered sites due to an industry change.

2 Australian Capital Territory customer accounts are included in New South Wales.

3 Northern Territory and Western Australia customer accounts are included in South Australia.

4 Includes 403,000 CES customer accounts (FY2021: 280,000).

5 Largely relates to Origin Home Assist customers.

Change

108

17

37

42

11

29

29

(0)

3

(3)

137

67

28

8

20

193

Operating and Financial Review

33

Origin churn increased to 13.4 per cent, up from 12.5 per cent 
in the prior period, compared to market churn of 19.0 per cent 
which is up from 17.3 per cent in the prior period. Churn rates 
increased driven by volatile and high wholesale electricity prices, 
causing some smaller energy retailers to either exit the market or 
offer uncompetitive prices to their customers.

Period end customer accounts increased by 193,000 overall, 
including recording 39,000 previously excluded electricity 
unmetered sites due to an industry change. Excluding the addition 
of the electricity unmetered sites, electricity customer accounts 
increased by 69,000 reflecting gains across all states. Natural 
Gas customer accounts increased by 29,000, driven primarily by 
gains in New South Wales. The addition of around 7,000 customer 
accounts was due to the Retailer of Last Resort (ROLR) events14 that 
occurred from May 2022 until the end of FY2022.

WINconnect acquisition added 99,000 customer accounts to the 
CES business. Broadband customer accounts increased by 28,000 
to a total of 61,000 and LPG customer accounts increased by 8,000 
to 368,000.

6.1.5 LPG

Volumes (kT)

Revenue and Other Income ($m)

Cost of goods sold ($m)

Gross Profit ($m)

Operating costs ($m)

Underlying EBITDA ($m)

Electricity and Gas: Customer account movement ('000)1

40

30

20

10

0

(10)

NSW

QLD

VIC

SA

Electricity

Gas

1 Excludes 39,000 unmetered sites which are now included in total customer 

accounts due to an industry change.

FY22

357

710

(513)

196

(104)

92

FY21

389

589

(388)

201

(112)

89

Change

Change (%)

(32)

121

(125)

(4)

8

3

(8)

21

32

(2)

(7)

4

Origin is one of Australia’s largest LPG and propane suppliers, procuring and distributing LPG to residential and business locations across 
Australia and the Pacific.

Gross Profit was broadly in line with FY2021 with higher cost of gas offset by retail price increases. Volumes were down 8 per cent due to 
continued decline in autogas sales and lower wholesale demand. Operating costs decreased $8 million, largely driven by cost efficiencies 
achieved as part of an ongoing cost optimisation program.

6.1.6 Solar and Energy Services

Revenue and Other Income

CES Gross Profit

Solar Gross Profit

Other Gross Profit

Gross Profit

Operating costs

Underlying EBITDA

FY22
($m)

405

98

33

2

133

(81)

52

FY21
($m)

346

82

39

5

126

(70)

55

Change
($m)

Change
(%)

59

16

(6)

(2)

7

(11)

(3)

17

20

(15)

(60)

6

16

(5)

Origin provides installation of solar photovoltaic (PV) systems and batteries to residential and business customers, and ongoing support and 
maintenance services. The Community Energy Services (CES) business provides serviced hot water, natural gas and electricity via embedded 
networks and other related services such as communal solar and battery systems to apartment blocks.

Underlying EBITDA decreased $3 million. CES Gross Profit increased $16 million driven by continued growth in customer account, with 
the WINconnect acquisition in April 2022 adding around 99,000 customer accounts. This is offset by a $6 million reduction in Solar Gross 
Profit largely due to higher panel costs associated with manufacturing and supply constraints, and an $11 million increase in operating costs 
including the continued investment in Broadband.

14 Weston Energy, Pooled Energy and Enova Energy.

 
34

Annual Report 2022

6.1.7 Future Energy

Operating costs

Other income

EBITDA

Net (investments) / disposals1

FY22
($m)

(29)

2

(28)

1

FY21
($m)

(25)

6

(19)

(5)

Change
($m)

(5)

(3)

(9)

5

Change
(%)

16

(67)

47

(120)

1 Relates to investments in future energy technology focused private equity funds.

Future Energy activities and associated expenditure reflects the transition from the incubation phase to scaling of various initiatives. The 
main focus areas continue to be the expansion of Origin Loop (our in-house Virtual Power Plant) and the deployment of digital products and 
services to our customers that reflect the continued shift towards a distributed and data-driven energy landscape.

Assets connected to Loop have grown from 159 MW to 258 MW during FY2022, including an increasing variety of distributed assets, which 
are aggregated, controlled and dispatched in response to market and portfolio positions, improving customer engagement while reducing 
energy costs for both customers and Origin.

Of the 121,000 connected services, more than 75,000 are from our Spike program, an increase of around 30 per cent in the past 12 months. 
Spike is a behavioural demand response program that rewards customers for reducing energy usage during periods of peak market demand 
called SpikeHour. It has proven to be very engaging with customers, with more than 2.6 million SpikeHour invitations since the launch in 
August 2020, with a participation rate of 69 per cent and total energy reduction of 342 MWh during the SpikeHour. We have also deployed 
in-app solar and battery features that provide customers with powerful insights on how they use and manage energy in their homes.

Operating costs increased during the period, largely due to scaling of Loop, batteries and demand response offerings.

Other income in the period related to distributions received from equity investments.

Operating and Financial Review

6.1.8 Octopus Energy - Origin share15

Revenue - energy

Revenue - licensing

Cost of sales

Gross Profit

Operating costs

EBITDA

ITDA

NPAT

1 Certain amounts have been restated to reflect an adjustment to the result of the equity accounted investment in Octopus Energy.

Octopus customer accounts - Octopus 100%

Energy customer accounts (closing)

Energy customer accounts (12-month average)

Licensed Kraken platform customer accounts migrated to date (closing)

Licensed Kraken platform customer accounts migrated to date (12-month average)

35

FY21
($m)1

750

31

(752)

29

(32)

(3)

(39)

(42)

FY21
('000)

4,214

3,486

4,726

2,134

FY22
($m)

1,603

35

(1,607)

32

(68)

(36)

(51)

(87)

FY22
('000)

6,013

5,531

11,240

8,036

Octopus secured two new investors during the year. Origin invested an additional approximately $80 million (£43 million) in FY2022 and 
$163 million (£94 million) in August 2022 to restore its 20 per cent interest.

Origin’s share of Octopus Energy EBITDA for the period was a loss of $36 million, a reduction of $33 million from FY2021. This was largely 
driven by unprecedented UK market conditions in FY2022 which saw about 28 UK energy retailers exit the market since the start of September 
2021, displacing close to 6 million customers. Octopus' wholesale risk management approach largely shielded the company from the market 
volatility, though they incurred a higher cost of energy during extreme wholesale prices with an inability to pass this cost on to customers 
due to the lag in the reset of regulated tariffs. Octopus' operating costs increased driven by the scale up of labour to support the growth in 
licensing, energy services and international retail businesses.

Octopus added around 1 million Avro Energy customer accounts under the regulator's Retailer of Last Resort (ROLR) scheme and launched 
in the Italian and French markets. Customer accounts in the underlying UK retail business have grown to 6 million at the end of June 
2022, a 43 per cent increase in the past 12 months and Octopus is now the fifth largest UK retailer. This has demonstrated the significant 
advantage of Octopus’ low-cost operating model, prudent risk management approach and market-leading Kraken platform in a rapidly 
changing energy landscape.

In November 2021, Octopus announced a licensing deal with EDF, the fourth largest UK energy supplier, to move its 5 million customers to 
Kraken from 2023. Following this deal, four of the UK’s leading energy suppliers will be on the Kraken platform. Licensing deals with E.ON and 
Origin are progressing well, with all of E.ON's 8.7 million customer accounts migrated and 2.2 million customer accounts from Origin now on 
the Kraken platform.

15 Following CPPIB' investment in Octopus Energy during December 2021, Origin accounted for its interest in Octopus Energy at 18.7 per cent from 1 December 2021 (previously 

20 per cent). An additional $163 million (£94 million) was invested to restore its 20 per cent interest in August 2022.

36

Annual Report 2022

6.2 Integrated Gas

Share of APLNG EBITDA (see Section 6.2.1)16

Integrated Gas - Other (see Section 6.2.2)

Underlying EBITDA

Underlying depreciation and amortisation

Underlying share of ITDA from APLNG

Underlying EBIT

6.2.1 Share of APLNG

FY22
($m)

2,134

(297)

1,837

(24)

(1,086)

727

FY21
($m)

1,145

(10)

1,135

(30)

(917)

188

Change
($m)

989

(287)

702

6

(169)

539

Change
(%)

86

2,870

62

(20)

18

287

Origin held a 37.5 per cent shareholding in APLNG, an equity accounted incorporated joint venture, at the beginning of FY2022. On 
8 December 2021 Origin sold a 10 per cent interest to ConocoPhillips for net proceeds of $1,957 million taking Origin's holding in APLNG to 
27.5 per cent.16 The sale completed in February 2022. APLNG operates Australia’s largest CSG to LNG export project (by nameplate capacity) 
with the country’s largest 2P CSG reserves17.

Origin is the operator of the upstream CSG exploration and appraisal, development and production activities. ConocoPhillips is the operator 
of the 9 mtpa two-train LNG liquefaction facility at Gladstone in Queensland.

As APLNG is an equity accounted incorporated joint venture, Integrated Gas reports its share of APLNG EBITDA. The share of APLNG ITDA 
is recorded as a line item between EBITDA and EBIT.

APLNG acquired various CSG interests from Tri-Star in 2002 that are subject to reversionary rights and an ongoing royalty interest in favour 
of Tri-Star. These interests represent approximately 20 per cent of APLNG’s 2P CSG reserves and approximately 20 per cent of 3P (proved 
plus probable plus possible) CSG reserves (as at 30 June 2022). Refer to Section 8 for disclosure relating to Tri-Star litigation associated with 
these CSG interests.

Financial summary – APLNG

($m)

Commodity revenue and other income1

Operating expenses

Underlying EBITDA

Depreciation and amortisation

MRCPS interest expense

Project finance interest expense

Other financing expense

Interest income

Income tax expense

Underlying ITDA2

Underlying Profit

FY22

FY21

APLNG
100%

9,362

(2,486)

6,876

(1,563)

(141)

(261)

(67)

9

(1,456)

(3,479)

3,397

Origin
share16

2,903

(768)

2,134

(495)

(48)

(82)

(23)

3

(445)

(1,090)

1,044

APLNG
100%

4,595

(1,544)

3,051

(1,568)

(282)

(270)

(87)

6

(255)

(2,456)

595

Origin
share

1,723

(578)

1,145

(588)

(106)

(101)

(33)

2

(95)

(921)

224

1

Includes commodity revenue plus other income of $29 million (Origin share) primarily related to Woleebee asset sale (FY2021: $16 million Origin share).

2 See Note B2.2 of the Financial Statements for details relating to a $4 million difference between APLNG ITDA and Origin's reported share.

16 On 8 December 2021, Origin sold a 10 per cent interest to ConocoPhillips for net proceeds of $1,957 million taking Origin's holding in APLNG to 27.5 per cent.
17 As per EnergyQuest EnergyQuarterly, June 2022.

Exploration and appraisal  Drilling and gatheringProcessing andtransportation Domestic customersLiquefaction and export customersOperating and Financial Review

37

Origin’s share of APLNG Underlying EBITDA increased by $989 million, primarily due to higher commodity prices, partially offset by the 
reduction in ownership from December 2021.

• Commodity revenue and other income increased by $1,787 million18, primarily reflecting a realised oil price of US$74/bbl (A$103/bbl) 

compared to US$43/bbl (A$58/bbl) in FY2021 and higher realised spot LNG prices with 15 JKM-linked cargoes delivered in FY2022. The 
North Asian LNG prices delivered in FY2022 averaged approximately US$26/MMbtu compared with US$7/MMbtu in FY2021.

• Operating expenses increased by $35318 million, driven by higher royalties as a result of higher revenue, along with higher electricity costs. 

See below for further details.

• The change in ownership from December 2021 reduced Origin's share of APLNG's EBITDA by $444 million compared to maintaining a 

37.5 per cent stake for the full year.

The change in ownership is also the primary driver of the reduction in Origin’s share of depreciation and amortisation of $93 million and project 
finance interest expense of $19 million. MRCPS were fully repaid during the period, leading to a reduction in MRCPS interest expense of 
$58 million.

18 Origin's share is calculated at 37.5 per cent before 10 per cent divestment.

Commodity revenue and other income ($1,787 million)Movements in Underlying EBITDA ($m)23FY2021LNG volumeLNG priceDomestic revenueOther incomeOpexDivestmentFY20221,1451,62211923(353)(444)2,13438

Annual Report 2022

APLNG volume summary

Volumes (PJ)

Operated

Non-operated

Total production

Purchases

Changes in upstream gas inventory/other

Liquefaction/downstream inventory/other

Total sales

Commodity revenue ($m)

Domestic gas

LNG

Sales mix (PJ)

Domestic gas

LNG contract

LNG spot

Realised price

Domestic gas (A$/GJ)

LNG (A$/GJ)

LNG (US$/MMbtu)

Origin
share1

170

50

220

5

(1)

(13)

211

327

2,546

52

143

16

FY22

APLNG
100%

535

157

693

15

(4)

(40)

664

990

8,267

159

450

55

6.23

16.36

12.50

Origin
share

202

61

263

2

(4)

(15)

246

252

1,455

59

169

18

FY21

APLNG
100%

537

163

701

6

(12)

(39)

656

672

3,880

158

450

48

4.24

7.79

6.17

1 During FY22 Origin completed the sale of a 10 per cent interest in APLNG. As a result of the sale, from 8 December 2021 Origin holds 27.5 per cent ownership in APLNG which 

continues to be equity accounted

Strong operated field performance and operational efficiencies offset lower production from Spring Gully legacy wells, natural field decline 
in certain non-operated fields and wet weather impacts, resulting in stable production compared to the prior period.

APLNG sales volumes increased 1 per cent, reflecting more volumes lifted from non-operated fields and portfolio management via time swaps, 
which allows for effective management of upstream gas production during periods of LNG plant outages.

The average realised LNG price increased 110 per cent to A$16.36/GJ driven by higher realised oil prices, and higher spot LNG volumes 
and prices. The average realised domestic gas price increased 47 per cent to $6.23/GJ, primarily driven by market-linked short-term 
contract prices.

Operating and Financial Review

Cash flow – APLNG 100%

Underlying EBITDA

Non-cash items in underlying EBITDA

Change in working capital

Other

Operating cash flow1

Capital expenditure1

Interest income1

Acquisitions/disposals1

Loans (advanced to)/paid by shareholders

Investing cash flow

Project finance interest and transaction costs1

Repayment of project finance1

Other financing activities1

Repayment of lease liabilities1

Interest on lease liabilities1

MRCPS interest

MRCPS buy-back

Ordinary dividends paid

Financing cash flow

Net increase/(decrease) in cash and cash equivalents

Effect of exchange rate changes on cash1

Net increase/(decrease) in cash and cash equivalents including 
FX movement

Distributable cash flow1

39

Change
(%)

125

(1,213)

7

(100)

113

(10)

(13)

n/a

1,600

(35)

(11)

3

(54)

22

(21)

(51)

122

n/a

114

(794)

(246)

(483)

240

FY22
($m)

6,876

(89)

283

-

7,070

(415)

7

68

51

(289)

(233)

(694)

(22)

(55)

(15)

(145)

(3,544)

(1,573)

(6,281)

500

139

639

5,850

FY21
($m)

3,051

8

265

(10)

3,314

(459)

8

-

3

(448)

(263)

(672)

(48)

(45)

(19)

(293)

(1,598)

-

(2,938)

(72)

(95)

(167)

1,721

Change
($m)

3,825

(97)

18

10

3,756

44

(1)

68

48

159

30

(22)

26

(10)

4

148

(1,946)

(1,573)

(3,343)

572

234

806

4,129

1

Included in distributable cash flow. Distributable cash flow represents the net increase in cash, including foreign exchange movements before MRCPS interest and buy-backs, 

and transactions with shareholders.

APLNG generated distributable cash flow of $5,850 million in FY2022 at an effective oil price of US$74/bbl, up from $1,721 million at an 
effective oil price of US$43/bbl in the prior year. Cash distributions to Origin were $1,595 million in FY2022 up from $709 million in the prior 
year. The distribution Origin received comprised redemption of MRCPS and associated interest of $1,162 million, and unfranked ordinary 
dividends of $433 million. The project finance facility requires APLNG to hold an amount of cash to service near-term operational and 
project finance obligations. As at 30 June 2022, APLNG held $1,544 million of cash, up from $905 million at 30 June 2021 reflecting higher 
commodity prices in the last quarter of FY2022 compared with the last quarter of FY2021.

40

Annual Report 2022

Operating expenditure – APLNG 100%

Purchases

Royalties and tariffs1

Upstream operated opex

Upstream non-operated opex

Downstream opex

APLNG Corporate/other

Total operating expenses per Profit and Loss

Other cash items

Total operating cash costs

FY22
($m)

(144)

(784)

(935)

(295)

(309)

(19)

(2,486)

(32)

(2,518)

FY21
($m)

(41)

(180)

(767)

(249)

(221)

(86)

(1,544)

(89)

(1,634)

Change
($m)

Change
(%)

(103)

(604)

(168)

(46)

(88)

67

(942)

57

(884)

251

336

22

18

40

(78)

61

(64)

54

1 Reflects actual royalties paid. At breakeven price, royalties and tariffs would have amounted to $175 million (FY2021: $147 million).

Operating expenses increased $942 million, primarily driven by higher royalties and tariffs ($604 million), reflecting stronger commodity 
prices. Higher purchases was associated with portfolio management via time swaps supporting sales during upstream maintenance periods 
($103 million). Upstream operated opex increased $168 million mainly due to increased electricity costs with 24 per cent of APLNG's 
FY2022 electricity costs on a floating price, and a higher number of major workovers completed. Upstream non-operated opex increased 
$46 million, also driven by higher electricity costs. Downstream opex increased $88 million primarily reflecting the 31-day planned Train 1 
major maintenance activity conducted early in the year. APLNG Corporate/other reduced by $67 million, primarily due to favourable FX 
revaluation of USD cash balances.

Capital expenditure – APLNG 100%

Operated upstream - Sustain

Operated upstream - Infrastructure

Exploration and appraisal

Downstream

Non-operated

Total capital expenditure

FY22

($m)

(202)

(29)

(35)

(23)

(131)

(421)

FY21

($m)

(285)

(11)

(23)

(14)

(95)

(429)

Change

($m)

83

(18)

(12)

(9)

(36)

8

Change

(%)

(29)

166

50

68

37

(2)

Capital expenditure decreased $8 million, with an $83 million decrease in operated sustain costs, partially offset by increases across other 
areas. The reduction in operated sustain costs reflects reduced development activity in the period enabled by improved field performance 
as well as the impact of more wet weather in FY2022. Non-operated expenditure increased $36 million due to the commencement of 
Arcadia Phase 2 and Fairview development programs. Operated infrastructure costs increased $18 million primarily due to construction costs 
associated with the Talinga Condabri North Pipeline (TCNP), which was commissioned in July 2022, connecting gas fields to gas processing 
infrastructure with surplus capacity.

Operated upstream - Sustain includes expenditure for drilling, completions, fracture stimulation, the gathering network, surface connection, 
capital improvements and land access which occurs over multiple years. In FY2022, 63 operated wells were drilled (versus 86 in FY2021), 23 
wells were fracture stimulated (versus 18 in FY2021) and 65 operated wells were commissioned (versus 141 in FY2021).

Operating and Financial Review

41

6.2.2 Integrated Gas – Other

This segment comprises Origin Integrated Gas activities that are separate from APLNG, and includes exploration interests in the Beetaloo, 
Cooper-Eromanga and Canning Basins and a potential conventional development resource in the offshore Browse Basin. It also includes 
overhead costs (net of recoveries) incurred as upstream operator and corporate service provider to APLNG, costs associated with growth 
initiatives such as hydrogen, and costs incurred in managing Origin’s exposure to LNG pricing risk and impacts of its LNG trading positions.

Beetaloo Basin (Northern Territory)

Origin has a 77.5 per cent interest in three exploration permits over 18,500 km2 in the Beetaloo Basin. Stage 2 appraisal under the farm-in 
arrangement to evaluate three independent shale gas plays was completed in HY2022. Stage 3 is now underway, targeting the Velkerri dry 
gas play. Work continues with regulators and Native Title holders to ensure operations are conducted safely with transparency and consistent 
with necessary approvals and consents.

• Velkerri dry gas play – A further production test of the Amungee NW 1H well was conducted in August 2021 to assess if stages that were 
stimulated during the previous test in 2016 are contributing to flow rates. Average gas flow rates of 1.02 million standard cubic feet per day 
(MMscf/d) were observed over a 45-day period, with between 85 per cent and 95 per cent of the flows measured coming from the first 
200-metre section of the well. The test results suggest a normalised gas flow rate equivalent of between 5.2 and 5.8 MMscf/d per 1,000 
metres of lateral. Future production wells will target effective lengths of approximately 3,000 metres. This result indicates the Velkerri 
dry gas play may be comparable with commercial shale plays around the world. The Stage 3 work programme includes drilling, hydraulic 
fracture stimulation and extended production test of two horizontal wells.

• Velkerri liquids-rich gas play –The Velkerri 76 S2-1 well was drilled to a total measured depth of 2,129 metres in October 2021 with 

encouraging preliminary results, indicating that the Velkerri shales at this location are within the wet gas maturity window. The CY2022 
work programme includes core sample analysis to further characterise the reservoir.

• Kyalla liquids-rich gas play – A production test was conducted at the Kyalla 117 well during the period. The well was able to intermittently 
flow without assistance at rates up to 1.5 MMscf/d; however, production was not sustained and the well has been shut in. Kyalla 117 is 
the first horizontal well drilled targeting the Beetaloo Basin's Kyalla shale formation and successfully met its primary technical objective of 
demonstrating potential liquids-rich gas flows. The Stage 3 work programme includes further evaluation of the results of the Kyalla 117 well 
to better understand the issues encountered during testing in CY2021.

Cooper-Eromanga Basin (Queensland)

Origin has a 75 per cent interest and operatorship of five permits, 100 per cent interest and operatorship of one permit, and has 99 per 
cent interest and operatorship of additional 11 permits. In December 2020, the first vertical exploration well, Obelix-2, was drilled to test 
the maturity of the Toolebuc Formation. The well was written off in HY2022 with no plans for further development at the well location. 
Additional permits were acquired to continue the evaluation of the prospectivity of the Toolebuc formation within the basin, targeting both 
unconventional liquids and gas.

Canning Basin (Western Australia)

Origin entered into agreements in December 2020 with Buru Energy to farm in to a 50 per cent equity share in five permits, and a 40 per cent 
equity share in two permits. The Currajong 1 well was drilled to a total measured depth of 2,340 metres in August 2021 however no oil was 
recovered from the test zones, and the well was written off in HY2022. The Rafael 1 well was drilled to a total depth of 4,141 metres in November 
2021, and a production test was conducted in March 2022 with gas successfully flowed to the surface. Initial analysis of the data collected 
during the test indicates encouraging gas composition with high condensate and low CO2 content. Further appraisal of Rafael will be required 
to understand materiality and commerciality.

Financial summary

Origin only commodity hedging and trading

Other Origin only costs

Underlying EBITDA

Underlying depreciation and amortisation/ITDA

Interest income - MRCPS

Underlying Profit/(Loss)

FY22
($m)

(189)

(109)

(297)

(20)

48

(268)

FY21
($m)

55

(65)

(10)

(26)

106

71

Change
($m)

(244)

(44)

(287)

6

(58)

(339)

Change
(%)

(441)

67

2,870

(22)

(55)

(477)

Refer to the following table for a breakdown of Origin only commodity hedging and trading costs.

Other Origin only costs increased $44 million, primarily reflecting write-off of wells in the Cooper and Canning Basins.

42

Annual Report 2022

Commodity hedging and trading summary

FY2022 positions realised a $189 million net loss, compared to a $55 million gain in FY2021. Based on current forward market prices19, we 
estimate a net loss on oil hedging and LNG trading in FY2023 of $358 million.

($m)

Oil hedging premium expense

Gain/(loss) on oil hedging

Gain/(loss) on LNG trading

Total

1 Based on forward prices as at 2 August 2022.

Oil hedging

FY22
actual

(28)

(137)

(23)

(189)

FY21
actual

(9)

101

(37)

55

FY23
estimate1

(21)

(290)

(47)

(358)

Origin has entered into oil hedging instruments to manage its share of APLNG oil price risk based on the primary principle of protecting the 
Company’s investment grade credit rating and cash flows during volatile market periods.

For FY2023, Origin’s share of APLNG related Japan Customs-cleared Crude (JCC) oil price exposure is estimated to be approximately 17 
MMboe. As at 2 August 2022, we estimate that 43 per cent has been priced (based on LNG contract lags) at approximately US$108/bbl 
before any hedging.

Origin has separately hedged to provide downside protection (using 5.4 MMbbl of swaps and 1.6 MMbbl of producer collars) and 
subsequently executed 4.4 MMbbl of collars to re-participate in upside in a higher oil environment. As at 2 August 2022, the effective price 
on the realised hedging (3 MMbbl equivalent) was US$67/bbl (see table below). Based on forward oil price of US$94/bbl, the effective prices 
on the unrealised hedges would be US$64/bbl (2.4 MMbbl equivalent), which would result in an effective oil price for FY2023 of ~US$87/bbl 
including hedges.

Premium spend for this hedge position is A$21 million, to be incurred in FY2023.

Realised as at 2 August 2022

Remaining unrealised

FY2023 hedge instruments

Volume (MMbbl)

Brent USD swaps

Brent producer collars

Brent USD upside participation collar

Net realised price

The FY2024 hedge position consists of:

• 2 MMbbl hedged at a fixed price of A$137/bbl,

3.0

0.4

2.6

Effective 
realised price on 
3 MMbbl

US$57/bbl

-US$3/bbl

+US$13/bbl

US$67/bbl

Volume (MMbbl)

Average price

2.4

1.2

1.8

US$55/bbl

US$35-90/bbl

US$61-76/bbl

• 0.8 MMbbl hedged at a floor price of US$35/bbl, with all of this hedged amount participating in market prices up to US$90/bbl.

The total premium spend for this hedge position is A$2 million to be incurred in FY2024.

LNG hedging and trading

In 2013, Origin established a Henry Hub linked contract to purchase 0.25 mtpa from Cameron LNG for a period of 20 years, with the first cargo 
delivered to Origin in June 2020.

In FY2020, a non-cash onerous provision of $641 million was recognised, which has been revalued to nil ($0m) as at 30 June 2022 
($397 million as at 30 June 2021), reflecting stronger near-term assumptions for LNG prices relative to Henry Hub prices, higher US Treasury 
bond rates and the realised gain for the period.

In 2016, Origin established a contract with ENN LNG Trading Company Limited to sell 0.28 mtpa on a Brent oil-linked basis commencing in 
FY2019 and ending in December 2023 to act as a partial hedge to the Cameron LNG contract. In FY2021, a non-cash onerous provision of 
$13 million was recognised, which has been revalued at $397 million as at 30 June 2022, reflecting stronger near-term assumptions for LNG 
prices relative to Brent oil prices.

These contracts and derivative hedge contracts that manage the price risk associated with the physical LNG contracts form part of an LNG 
trading portfolio.

Based on market forward prices as at 2 August 2022, the FY2023 LNG trading loss is expected to be $47 million and remains subject to the 
spread between European and Asian gas prices, shipping costs and the allocation of cargos in the annual schedule. The increase in expected 
loss compared to FY2022 is primarily due to less favourable hedging rates achieved and higher shipping costs on physical deliveries.

19 As at 2 August 2022.

Operating and Financial Review

43

7 Risks related to Origin’s future financial prospects

The scope of operations and activities means that Origin is exposed to risks that can have a material impact on our future financial prospects. 
Material risks, and the Company’s approach to managing them, are summarised below.

Risk management framework

Overseen by the Board and the Board Risk Committee, Origin’s risk management framework supports the identification, management and 
reporting of material risks. Risks are identified that have the potential to impact the delivery of business plans and objectives.  Risks are 
assessed using a risk toolkit that considers the level of consequence and likelihood of occurrence using consistent risk assessment criteria.

The risk framework incorporates a "three lines of defence" model for managing risks and controls in areas such as health and safety, 
environment (including climate change), financial, reputation and brand, legal and compliance and social impacts. All employees are 
responsible for making risk-based decisions and managing risk within approved risk appetite and specific limits.

The Board reviews Origin’s material risks each quarter and assesses the effectiveness of the Company’s risk management framework annually 
in accordance with the ASX Corporate Governance Principles and Recommendations.

Three lines of defence

Line of defence

First line
Lines of business

Second line
Oversight functions

Third line
Internal audit

Responsibility

Primary accountability

Identifies, assesses, records, prioritises, manages and monitors risks.

Management

Provides the risk management framework, tools and systems to 
support effective risk management.

Management

Provides assurance on the effectiveness of governance, risk 
management and internal controls.

Board, Board Committees 
and Management

Our risk framework supports the identification and management of emerging risks and escalating threats. During FY2022, the accelerating 
energy transition, continued COVID-19 challenges, as well as emerging geopolitical risks, inflationary pressures, and supply chain disruptions 
were key threats to our operational and financial performance. These threats have required ongoing response and management across many 
of our existing material risks to minimise impacts. Our priorities remain focused on ensuring the continuity of our operations and supporting 
activities to provide essential services to our customers, and to maintain our financial resilience to respond to changes in global markets.

Material risks

The risks identified in this section have the potential to materially affect Origin’s ability to meet our business objectives and impact its future 
financial prospects. These risks are not exhaustive and are not arranged in order of significance.

Strategic risks

Strategic risks arise from uncertainties that may emerge in the medium to longer term and, while they may not necessarily impact on short-
term profits, can have an immediate impact on the value of the Company. These strategic risks are managed through continuous monitoring 
and reviewing of emerging and escalating risks, ongoing planning and the allocation of resources, and evaluation from management and 
the Board.

Risk

Consequences

Management

Competition

Origin operates in a highly competitive retail environment which 
can result in pressure on margins and customer losses.

Competition also impacts Origin’s wholesale business, with 
generators competing for capacity and fuel and the potential 
for gas markets to be impacted by new domestic gas resources, 
LNG imports and the volume of gas exports.

Origin is well placed to respond to prevailing headwinds due 
to the diversified nature of our business; however, Origin 
is exposed to coal supply challenges relative to vertically 
integrated organisations with coal businesses or those with long 
term legacy coal contracts.

• Our strategy to mitigate the impact of this risk on 

our retail business is to provide customers with value 
for money products with exceptional service whilst 
continuously focussing on maintaining our cost leadership 
and innovation. The migration of our business to Octopus’ 
Kraken platform should see Origin maintain our churn 
advantage to competitors through extending leadership 
in cost, products and service.

• We endeavour to mitigate the impact of this risk on 

our wholesale business by sourcing competitively priced 
fuel to operate our generation fleet and through efficient 
operations to optimise flexibility in our fuel, transportation 
and generation portfolio. 

44

Annual Report 2022

Risk

Consequences

Management

Technological 
developments / 
disruption

Changes in 
demand for energy

Regulatory 
and government

Origin is exposed to risks and opportunities relating to new 
digital, and low-carbon technologies.

Distributed generation is empowering consumers to own, 
generate and store electricity, consuming less energy from 
the grid. Technology is allowing consumers to understand 
and manage their power usage through smart appliances, 
having the potential to disrupt the existing utility relationship 
with consumers.

Technology also allows customers to have increased awareness 
of the impact of when they consume energy and the source of 
that energy.

Advances in technology and the abundance of low-cost data 
acquisition, communication and control has the potential to 
create new business models and introduce new competitors.

The volume or source of energy demanded by customers 
could change due to price, consumer behaviour, community 
expectations, mandatory energy efficiency schemes, 
Government policy, weather and other factors. 

Demand for the energy is also expected to grow due to increased 
electrification, e.g., hydrogen, E-mobility and distributed 
infrastructure as a service, providing new market opportunities.

The current global energy market environment may impact the 
supply and cost of energy to our customers, and this could 
have an adverse impact on our reputation with customers and 
the community.

Any change in demand for energy could impact Origin’s 
revenues and future financial performance.

Origin has broad exposure to regulatory policy change and 
other government interventions. Changes to policy and other 
government interventions can impact financial outcomes and, 
in some cases, change the commercial viability of existing or 
proposed projects or operations. Specific areas subject to review 
and development include government subsidies for building 
new generation or transmission capacity, government direct 
investment in generation, constraints upon plant closure, energy 
market design, domestic and international climate change 
policies, domestic gas market interventions, wholesale and 
retail price, consumer protection regulation, and royalties and 
taxation policy.

• Origin actively participates and invests in technological 

developments through local and global start-up 
accelerator programs, trialling new energy technology and 
new products and business models. 

•

In parallel, Origin is growing its distributed generation 
and home energy services businesses and endeavouring 
to mitigate the impact of this risk on its core energy 
businesses by offering superior service and innovative 
products and reducing cost to serve.

• Origin is pursuing opportunities in low-carbon 

technologies such as hydrogen, e-mobility, and 
carbon management.

• Our strategy of increasing our supply of renewables 

and investing in new technology and products, such as 
storage, the virtual power plant and low carbon customer 
solutions, supports Origin’s ability to meet future increases 
in energy demand.

• Origin uses the flexibility in its gas supply and peaking 
generation capacity, as well as the flexibility of Eraring 
Power Station, to manage the intermittency of renewables.

• Origin is partially mitigating the impact of this risk 

by developing data-based customer propositions and 
better predicting customer demand through our AI 
orchestration platform, which connects and controls 
distributed assets and IoT devices, and by applying 
advanced data analytics capability.

• Origin contributes to the policy process with federal, 

state and territory governments by actively participating 
in public policy debate, proactively engaging with policy 
makers and participating in public forums, industry 
associations, think tanks and research.

• Origin advocates directly with key members of 

governments, opposition parties and bureaucrats to 
achieve sound policy outcomes aligned with our Purpose 
and commercial objectives. Origin also makes formal 
submissions to relevant government policy inquiries.

• Origin actively and publicly promotes the customer 

and economic benefits that flow from our activities in 
deregulated energy markets.

Operating and Financial Review

45

Climate risks

Climate change risk is considered a strategic risk for Origin. Under the Task Force on Climate-related Financial Disclosures (TCFD) framework, 
Origin’s climate-related risks can be classified as transitional or physical.  Many of Origin’s climate-related risks are managed within our existing 
risks and the table below provides a summary of our climate-related risks under the TCFD's categories.

TCFD Risk Type

Consequences

Management

Transition Risks

Policy and Legal

Risk time horizon: 
Short – Medium

Changes to government policy and regulation in relation to, 
and resulting from, climate change may present risks and 
opportunities for Origin, including:

•

regulatory intervention in the national electricity and 
gas markets;

• carbon pricing (including carbon markets, border adjustment 
and taxes); the emergence of new climate-related legislation 
or reporting requirements;

• government investment in energy infrastructure and 

generation including partnerships;

• government grants and subsidies to innovate and incentivise 

market development; and

• development approvals and planning and zoning laws.

These changes may impact Origin's asset values, operating 
costs, or investment decisions.

There is an increased risk of climate change-related litigation 
globally and in Australia. Any litigation would incur legal costs 
and potential fines, compensation payments or settlement 
costs and may directly or indirectly influence future 
operational strategy.

• Origin has committed to updating its emissions reduction 

targets to be consistent with a 1.5°C pathway.

• Origin continues to advocate for coordinated and long-
term energy policy at the national level to give industry 
the confidence to invest in new electricity generation and 
gas supply.

• Origin engages proactively with all levels of government 
and regulatory bodies on energy and climate policy, 
including through policy submissions, participating in 
think tanks, research and various industry associations. 
This consultation helps to support government responses 
in a rapidly evolving landscape.

• Climate-related commitments and disclosures are 

regularly reviewed and updated to take into consideration 
up to date science, regulatory requirements and 
stakeholder expectations.

• Scenario based planning and portfolio assessment is 

carried out.

Technology

Risk time horizon: 
Short – Long

The development of new technologies may be required to assist 
Origin to meet its medium to long-term decarbonisation targets, 
however there is uncertainty regarding the efficacy, timing, and 
cost of available technologies.

The growth of low emissions technologies, distributed 
generation, and demand management enabled by technologies 
could result in lower demand (and revenue) for existing products 
however these also present new market opportunities and 
revenue streams.

Market

Risk time horizon: 
Short - Medium

The energy transition represents a period of significant change 
and volatility which presents both risks and opportunities for 
Origin. The ongoing decarbonisation of energy markets and 
lower demand for fossil fuels in some markets could result in:

•

•

the reduced lifespan of existing carbon-intensive assets and 
potential for stranded assets;

the continued electrification of some sectors that currently 
depend on fossil fuels, with potential to increase overall 
demand for electricity;

• a change in the competitive landscape and the development 

of new markets and business models that Origin can 
participate in, as cleaner fuels, renewables, storage, and 
distributed generation markets evolve; and

• energy market price volatility, as both the volume and source 

of energy supply and demand shift.

Origin's response to these market changes may have a positive or 
negative influence on our future financial prospects including our 
earnings, asset values, and investments.

Origin's financial performance during the energy transition will 
also be influenced by the timely and affordable access to:

• capital to support our strategy and growth aspirations;

•

•

land and infrastructure, including the necessary network 
transmission capacity to enable investment in renewables and 
other third-party infrastructure; and

the necessary inputs (including skills, commodities, and other 
supplies) in an ethical manner to develop renewable and 
cleaner energy assets.

• Origin participates in local and global start-up accelerator 
programs, trialling new energy technology and exploring 
investments in new products or business models.  

• Origin is growing its offerings in emerging technologies 

and markets.

• More details are in the ‘Technological developments / 

disruption’ strategic risk above.

• Our aim is to transition through cleaner energy and 

customer solutions.

• Origin is focused on growing our offering of low 

carbon solutions, including solar and batteries, electric 
vehicles and demand management, that help our 
customers decarbonise. We are also accelerating growth 
in renewables and cleaner energy, by aiming to grow our 
portfolio of renewables and storage and exploring both 
domestic and export market opportunities for renewable 
hydrogen and ammonia.

• All major Origin capital expenditure and investment 

decisions are tested against a range of climate-related 
scenarios and incorporate a price on carbon. Climate 
change scenario analysis plays a role in our assessment of 
the assets we should hold, invest in, dispose of and acquire.

• Origin aims to deploy capital in areas that deliver value to 
shareholders and are consistent with our strategy, targets 
and ambition.

• Origin is investing in new technology to support our ability 
to manage the supply / demand balance in the electricity 
market. This includes scaling an artificial intelligence 
orchestration platform, or VPP, which connects, and 
controls distributed assets and IoT devices, and applying 
advanced data analytics capability to smart meter data to 
better predict customer demand and develop data-based 
customer propositions. The VPP provides Origin with an 
important tool to manage the supply/demand balance in 
the electricity market.

46

Annual Report 2022

TCFD Risk Type

Consequences

Management

Transition Risks

Reputation

Risk time 
horizon: Short

Our decarbonisation targets and climate change strategy may 
fail to meet stakeholder expectations. This includes the timing 
and alignment of our portfolio decisions, particularly in relation to 
the role of gas as a transition fuel, and how we set, measure and 
report on climate change targets. This could result in:

•

increased cost of, or restricted access to, debt and equity 
capital and insurance;

• adverse impacts to our social licence to operate, and our 

reputation among communities and with our customers; and

• challenges attracting and retaining talent.

Physical Risks

Chronic

Risk time horizon: 
Short – Long

Changing weather patterns may influence the demand for 
energy, which could impact Origin’s revenues and future 
financial performance.

Acute

Risk time horizon: 
Short – Long

Changing and more frequent and severe weather conditions, 
including floods, droughts, bushfires, and extreme temperature 
events could disrupt our operations or impact the efficacy 
of our assets, leading to increased operating costs, increased 
maintenance and capital expenditure, and higher insurance costs 
or restrictions on the ability access insurance.

• Origin has committed to updating its medium-term 
emissions reductions target consistent with a 1.5°C 
pathway. We also have a short-term emissions reduction 
pathway linked to executive remuneration, and aim to 
be net zero by 2050.  This will contribute to Origin’s 
reputation as being responsive to climate change risks.

• Origin has been using the TCFD as the framework for 

our external climate disclosures since 2018, and in 2022 
will publish a Climate Transition Action Plan (CTAP) 
that will be put to a non-binding, advisory shareholder 
vote at the 2022 Annual General Meeting. The CTAP 
will include Origin's updated emissions reduction targets 
and ambitions.

• Origin proactively engages with our capital providers 

and other financial stakeholders to ensure they are well 
informed of our climate change strategy, commitments 
and targets.

• Origin engages with communities to understand, 

mitigate, and report on environmental risks associated 
with its projects and operations, including relating to 
climate change.

• Origin is applying advanced data analytics capability 

to better predict customer demand and increasing our 
supply of renewables and flexible capacity to meet 
changes in demand.

• More details are in the ‘Changes in demand for energy’ 

strategic risk above.

• Origin has extreme weather event preparation processes 
including comprehensive seasonal readiness activities and 
emergency response plans.

• Our operational planning and design processes 

incorporate extreme weather events, while investment 
decisions for major growth projects. incorporate potential 
financial losses from natural disasters.

Time horizons: Short-term: up to three years; Medium-term: three to 10 years; Long-term: beyond 10 years

Operating and Financial Review

47

Financial risks

Financial risks are the risks that directly impact the financial performance and resilience of Origin.

Consequences

Management

Risk

Commodity

Foreign exchange 
and interest rates

Origin has a long-term exposure to international oil, LNG and 
gas prices through the sale and purchase of domestic gas, 
LNG and LPG, and its investment in APLNG. Pricing can be 
volatile and downward price movements can impact cash flow, 
financial performance, reserves and asset carrying values. Some 
of Origin’s long-term domestic gas purchase agreements and 
APLNG’s LNG sale agreements contain periodic price reviews. 
Following each review, pricing may be adjusted upwards or 
downwards, or it may remain unchanged.

Prices and volumes for electricity that Origin sources to on-sell 
to customers are volatile and are influenced by many factors 
that are difficult to predict.  Fluctuations in coal and gas prices 
also impact the margins of Origin's generation portfolio. Energy 
Markets also has exposures to contracted volumes of coal not 
being delivered which could result in lower output or higher costs 
to meet customer demand.

Different commodity prices that have historically moved in a 
correlated fashion may see that correlation break down. It would 
disadvantage Origin if the domestic wholesale energy costs 
incurred by Energy Markets were high, but the international oil 
and LNG prices obtained by APLNG were low.

Origin has exposures through principal debt and interest 
payments associated with foreign currency and Australian dollar 
borrowings, through the sale and purchase of gas, LNG and LPG, 
and through its investments in APLNG and Octopus. Interest rate 
and foreign exchange movements could lead to a decrease in 
revenues or increased payments in Australian dollar terms.

Liquidity and 
access to 
capital markets

Origin’s business, prospects and financial flexibility could be 
adversely affected by a failure to appropriately manage its 
liquidity position, or if markets are not available at the time of any 
financing or refinancing requirement.

Credit 
and counterparty

Some counterparties may fail to fulfil their obligations (in whole 
or part) under major contracts.

• Commodity exposure limits are set by the Board to 
manage the overall financial exposure that Origin is 
prepared to take.

• Origin's commodity risk management process monitors 

and reports performance against defined limits.

• Commodity price risk is managed through a combination 

of physical positions and derivatives contracts.

• For each periodic price and supply review, a negotiation 

strategy is developed, which takes into account 
external market advice and utilises both external and in-
house expertise.

• Risk limits are set by the Board to manage the 

overall exposure.

• Origin's treasury risk management process monitors and 

reports performance against defined limits.

• Foreign exchange and interest rate risks are 

managed through a combination of physical positions 
and derivatives.

• Origin actively manages its liquidity position through cash 
flow forecasting and maintenance of minimum levels of 
liquidity as determined under Board approved limits.

• Counterparty risk assessments are regularly undertaken 
and where appropriate, credit support is obtained to 
manage counterparty risk.

• Australian Energy Market Operator (AEMO) credit is 

managed daily to ensure compliance with the market rules, 
ensuring management forecast the collateral required 
to continue to meet spot market obligations for all 
AEMO markets.

48

Annual Report 2022

Operational risks

Operational risks arise from inadequate or failed internal processes, people or systems or from external events.

Risk

Consequences

Management

Safe and 
reliable operations

Environmental 
and Social

Origin has exposure to reliability or major accident events 
that may impact our licence to operate or financial prospects. 
This includes loss of containment, cyber-attack and security 
incidents, unsafe operations, and natural hazards and events 
that may result in harm to our people, environmental damage, 
additional costs, production loss, third-party impacts, and 
impact to our reputation.

A production outage or constraint, network or IT systems outage, 
would affect Origin's ability to deliver electricity and gas to 
its customers.

A serious incident or a prolonged outage may also damage 
Origin’s financial prospects and reputation.

An environmental incident or Origin’s failure to consider 
and adequately mitigate the environmental, social and socio-
economic impacts on communities and the environment has 
the potential to cause environmental impact, community 
action, regulatory intervention, legal action, reduced access to 
resources and markets, impacts to Origin’s licence to operate and 
reputation and increased operating costs.

Community concerns regarding environmental and social 
impacts associated with our activities may also give rise to unrest 
amongst community stakeholder groups and activism which 
may impact the company's reputation. A third party’s actions 
may also result in delay in Origin carrying out its approved 
development and operational activities. NGOs, landholders, 
community members and other affected parties can seek to 
prevent or delay Origin’s activities through court litigation, 
preventing access to land and extending approval pathway 
time frames.

Cyber security

A cyber security incident could lead to a breach of privacy, 
loss of and/or corruption of commercially sensitive data, and/or 
a disruption of critical business processes. This may adversely 
impact customers and the Company’s business activities.

• Core operations are subject to a comprehensive 

framework of controls and operational performance 
monitoring to manage the design, operational and 
technical integrity of our assets and associated operational 
activities. Origin’s standards and controls are designed 
to ensure it meets regulatory and industry standards in 
all operations.

• Origin personnel are appropriately trained and licensed to 

perform their operational activities.

• Origin maintains an extensive insurance program 
to mitigate consequences by partially transferring 
financial risk exposure to third parties where 
commercially appropriate.

• Origin engages with communities to understand, mitigate 
and report on environmental and social risks associated 
with its projects and operations. 

• At a minimum, the management of environmental 

and social risks meets regulatory requirements. Where 
practical, our management extends to the improvement 
of environmental values and the creation of socio-
economic benefits.

• Origin has a cultural awareness learning framework to 

build awareness of Aboriginal and Torres Strait Islander 
cultures, histories and achievements. Origin maintains 
and implements Native Title Agreements and Cultural 
Heritage Management Plans with Traditional Owners 
where appropriate.  Engagement with impacted groups 
and consideration of cultural heritage protection is 
undertaken as part of ongoing operations and at project 
stage gates.

• A dedicated Board Committee oversees safety and 

sustainability. The Committee receives regular reporting 
of the highest rated environmental risks and mitigants, 
and reviews significant incidents and near misses. 
The Committee also receives periodic updates on our 
engagement with Traditional Owners.

• Origin engages with its stakeholders prior to seeking 

relevant approvals for its development and operational 
activities, and this engagement continues through the life 
of the project and during operations.

• A cyber security strategy is in place and is regularly 

updated to cater for emerging threats, security regulation 
and stakeholder expectations.    

• A robust security monitoring and incident response 

process exists and is exercised on a regular basis. In the 
event of an incident, Origin is supported by an external 
incident response and forensics firm.

• Origin undertakes regular independent security assurance 
to assess the resilience of our digital channels and internal 
security controls.

• Employees undertake compulsory cyber awareness 

training, including how to identify phishing emails and 
keep data safe; and are subject to a regular program of 
random testing.

Operating and Financial Review

49

Risk

Consequences

Management

APLNG gas 
reserves, resources 
and deliverability

There is uncertainty about the productivity, and therefore 
economic viability, of resources and developed and 
undeveloped reserves. As a result, there is a risk that actual 
production may vary from that estimated, and in the longer term, 
that there will be insufficient reserves to supply the full duration 
and volumes to meet contractual commitments.

As at 30 June 2022 APLNG’s identified reserves and resources 
are estimated to be greater than its contractual supply 
commitments on a volume basis. However, given the inherent 
uncertainty in forecasting future production rates, there is a 
risk that the rate of gas delivery required to meet APLNG’s 
committed gas supply agreements may not be able to be met for 
the later years in the life of existing contracts.

• APLNG integrates all available subsurface data to develop 
insights into regional prospectivity allowing identification 
and prioritisation of plays and prospects for exploration to 
mature contingent and prospective resources.

• APLNG monitors reservoir performance and adjusts 

development plans accordingly. APLNG continually takes 
steps to further strengthen the supply base such as 
lowering costs and identifying new plays.

• APLNG is progressing an exploration campaign that if 

successful, could increase long term supply.

• APLNG continues to review business development 

opportunities for long term gas supply, and has the ability 
to substitute gas or LNG to meet contractual requirements 
if required.

Conduct

Unlawful, unethical or inappropriate conduct that falls short of 
community expectations could result in penalties, reputational/
brand damage, loss of customers and adverse financial impacts.   

• Origin’s people are trained on the laws and regulations that 
apply to their activities and operations or on the processes 
that underpin compliance with laws and regulations.

Origin’s financial prospects and operations are underpinned 
by our licence to operate which requires compliance with 
stakeholder commitments, regulations, and laws for example 
requirements for dealing with vulnerable customers, privacy, and 
insider trading.

Joint venture

Third party joint venture operators may have economic or other 
business interests that are inconsistent with Origin’s own and may 
take actions contrary to the Company’s objectives, interests or 
standards. This may lead to potential financial, reputational and 
environmental damage in the event of a serious incident.

• Origin’s Purpose, Values, Behaviours and Code 

of Conduct guide conduct and decision making 
across Origin.

• All Origin’s people are trained in our Code of Conduct, 
and we conduct training for insider trading, privacy and 
competition and consumer law every year.

• Conduct risk and Compliance are identified as material 

risks within Origin’s risk management framework and are 
regularly reported to the Board Risk Committee. Controls 
specific to the different parts of Origin’s business are 
the accountability of Business Units and are subject to 
assurance activities, including Internal Audit.

• Origin applies a number of governance and management 

standards across its various joint venture interests to 
provide a consistent approach to managing them.

• Origin actively monitors and participates in its joint 

ventures through participation in their respective boards 
and governance committees.

50

Annual Report 2022

8 APLNG reversion

In 2002, APLNG acquired various CSG interests from Tri-Star that 
are subject to reversionary rights and an ongoing royalty in favour 
of Tri-Star. If triggered, the reversionary rights require APLNG to 
transfer back to Tri-Star a 45 per cent interest in those CSG interests 
for no additional consideration. The reversion trigger will occur when 
the revenue from the sale of petroleum from those CSG interests, 
plus any other revenue derived from or in connection with those 
CSG interests, exceeds the aggregate of all expenditure relating 
to those CSG interests plus interest on that expenditure, royalty 
payments and the original acquisition price. 

The affected CSG interests represent approximately 20 per cent of 
APLNG’s 3P CSG reserves (as at 30 June 2022), and approximately 
20 per cent of APLNG’s 2P CSG reserves (as at 30 June 2022).

Tri-Star served proceedings on APLNG in 2015 (‘reversion 
proceeding’) claiming that reversion occurred as early as 
1 November 2008 following ConocoPhillips’ investment in APLNG, 
on the assertion that the equity subscription monies paid by 
ConocoPhillips, or a portion of them, were revenue for purposes of 
the reversion trigger. Tri-Star has also claimed in the alternative that 
reversion occurred in 2011 or 2012 following Sinopec’s investment in 
APLNG.  These claims are referred to in this document as Tri-Star’s 
"past reversion" claims.

Tri-Star has made other claims in the reversion proceeding against 
APLNG relating to other aspects of the reversion trigger (including 
as to the calculation of interest, calculation of revenue and the nature 
and quantum of APLNG’s expenditures that can be included), the 
calculation of the royalty payable by APLNG to Tri-Star, rights in 
respect of infrastructure, and claims relating to gas sold by APLNG 
following the alleged reversion dates. APLNG denies these claims 
and is defending the proceedings.

If Tri-Star’s past reversion claims are successful, then Tri-Star may be 
entitled to an order that reversion occurred as early as 1 November 
2008. If the court determines that reversion has occurred, then 
APLNG may no longer have access to the reserves and resources 
that are subject to Tri-Star’s reversionary interests and may need 
to source alternative supplies of gas (including from third parties) 
to meet its contracted commitments. There are also likely to be a 
number of further complex issues that would need to be resolved 
as a consequence of any such finding in favour of Tri-Star. These 
matters will need to be determined by the court (either in the current 
or in separate proceedings) or by agreement between the parties, 
and they include:

•

•

•

the terms under which some of the affected CSG interests will be 
operated where currently there are no joint operating agreements 
in place;

the amount of Tri-Star’s contribution to the costs incurred by 
APLNG in exploring and developing the affected CSG interests 
between the date of reversion and the date of judgment, which 
APLNG has stated in its defence and counter-claim are in the 
order of $4.56 billion (as at 31 December 2019) if reversion 
occurred on 1 November 2008; and

the consequences of APLNG having dealt with Tri-Star’s 
reversionary interests between the date of reversion and the date 
of judgment, including the gas produced from them. Tri-Star has:

– estimated the value of such gas which it has been unable 

to take since the alleged reversion, calculated by reference 
to the sale of gas as LNG and gas to domestic customers, 
to be approximately $3.37 billion (as at 31 March 2019) 
and approximately $1.3 billion per annum thereafter. In the 
alternative, Tri-Star claims that the value of such gas should be 
assessed by reference to the revenue derived by APLNG or 
its affiliates from LNG sales since the alleged reversion, being 

approximately $2.5 billion (as at March 2019), or $2.4 billion 
(as at March 2019) if the proceeds from the sale of LNG is 
determined to be calculated net of liquefaction costs; and

– alleged that it should be paid the value of such gas or is 

otherwise entitled to set-off the value of such gas from any 
amount owing to APLNG arising from APLNG’s counter-claim 
for contribution to the costs incurred by APLNG in exploring 
and developing the affected CSG interests between the date 
of reversion and the date of judgement; and

•

•

•

if reversion occurred:

the extent of the reversionary interests principally with respect to 
Tri-Star’s ownership and/or rights to use or access certain project 
infrastructure; and

the repayment by Tri-Star of the ongoing royalty which has been 
paid by APLNG since reversion, resulting from its mistake as to 
the occurrence of the reversion trigger.

If APLNG is successful in defending Tri-Star’s past reversion claims 
in the reversion proceeding, the potential for reversion to otherwise 
occur in the future in accordance with the reversion trigger 
will remain. 

In 2017, Tri-Star commenced separate proceedings against APLNG 
(‘markets proceeding’) which allege that APLNG breached three 
CSG joint operating agreements by failing to offer Tri-Star (and the 
other minority participants in those agreements) an opportunity to 
participate in the “markets” alleged to be constituted by certain 
of its LNG and domestic gas sales agreements, including the 
Sinopec and Kansai LNG sale agreements entered into by APLNG 
in 2011 and 2012. Tri-Star has alleged that it should have been 
offered participation in those sales agreements for its share of 
production from those three CSG joint ventures referable to both 
its small participating interests and its reversionary interests in those 
joint ventures.

In September 2019, Tri-Star made further claims in the markets 
proceeding relating to:

•

the nature and scope of the obligations of APLNG as operator 
pursuant to the CSG joint operating agreements;

• Tri-Star’s ownership and/or rights to use or access certain project 

infrastructure; and

• APLNG’s entitlement as operator to charge (both historically and 
in the future) certain categories of costs under the relevant CSG 
joint operating agreements. 

Tri-Star is seeking, amongst other things, damages and/or an order 
that APLNG offer Tri-Star (and the other minority participants 
in those CSG joint operating agreements) the opportunity to 
participate in those sales agreements for their proportionate share 
of production from those three CSG joint ventures. APLNG denies 
these claims and is defending these proceedings.

APLNG filed defences and counterclaims in both proceedings in 
April and May 2020. In December 2020, Tri-Star filed replies and 
answers in both proceedings. APLNG filed its rejoinders in the 
reversion proceeding and the markets proceeding in February and 
April 2021 respectively. APLNG filed a further amended defence and 
counterclaim in the reversion proceeding in December 2021.

In September 2021, Tri-Star filed and served an application in both 
proceedings for questions to be determined separately (or further 
or alternatively referred to a referee to conduct an inquiry into and 
prepare a report to the court on those questions). The questions 
proposed for separate determination in those applications include 
the issue of whether the 2008 ConocoPhillips subscription monies 
are revenue for the purposes of the calculation of the reversion 
trigger. APLNG opposed those applications. The applications were 
heard in April 2022 and judgement has been reserved. Origin 
expects that the court will wait for the applications to be finally 

Operating and Financial Review

51

determined before making further orders for the conduct of the two 
proceedings (which Origin expects will continue to be managed 
in parallel).

The necessary steps to prepare for a trial (whether as to all disputed 
issues or discrete questions) usually include document disclosure, 
evidence preparation and exchange and pre-trial mediation. The 
process that will ultimately be followed (and the procedural 
timetable) is difficult to predict at this stage.

If APLNG is not successful in defending all or some of the claims 
being made in the proceedings by Tri-Star, APLNG’s financial 
performance may be materially adversely impacted and the amount 
and timing of cash flows from APLNG to its shareholders, including 
Origin, may be significantly affected.

Each underlying measure disclosed has been adjusted to remove 
the impact of these items on a consistent basis. A reconciliation and 
description of the items that contribute to the difference between 
Statutory Profit and Underlying Profit is provided in Section 5.1 of 
this OFR.

Certain other non-IFRS financial measures are also included in 
this OFR. These non-IFRS financial measures are used internally 
by management to assess the performance of Origin’s business 
and make decisions on allocation of resources. Further information 
regarding the non-IFRS financial measures is included in the 
Glossary of this OFR. Non-IFRS financial measures have not been 
subject to audit or review. Certain comparative amounts from the 
prior corresponding period have been re-presented to conform to 
the current period's presentation.

Emissions data

Origin reports its Scope 1 and Scope 2 emissions under the 
National Greenhouse and Energy Reporting Act, 2007 (NGER)20. 
Origin calculates Scope 3 emissions based on the Greenhouse 
Gas Protocol’s Corporate Value Chain (Scope 3) Accounting and 
Reporting Standard21 and Scope 3 guidance documents22.

Due to the inherent uncertainty and limitations in measuring 
emissions under the calculation methodologies used in the 
preparation of such data, all emissions data or references to 
emissions volumes (including ratios or percentages) in this 
presentation are estimates. Where data is not available due to 
timing, Origin applies a reasonable estimation methodology. Where 
applicable, Origin revises prior year data to update prior estimates 
and align with external reporting requirements such as NGER.

9 Important information

Forward looking statements

This Operating and Financial Review (OFR) contains forward looking 
statements, including statements of current intention, statements 
of opinion and predictions as to possible future events and future 
financial prospects. Such statements are not statements of fact and 
there can be no certainty of outcome in relation to the matters to 
which the statements relate. Forward looking statements involve 
known and unknown risks, uncertainties, assumptions and other 
important factors that could cause the actual outcomes to be 
materially different from the events or results expressed or implied 
by such statements, and the outcomes are not all within the control 
of Origin. Statements about past performance are not necessarily 
indicative of future performance.

Neither the Company nor any of its subsidiaries, affiliates and 
associated companies (or any of their respective officers, employees 
or agents) (the ‘Relevant Persons’) makes any representation, 
assurance or guarantee as to the accuracy, completeness or 
likelihood of fulfilment of any forward looking statement any 
assumption on which a forward looking statement is based. The 
forward looking statements in this OFR reflect views held only at 
the date of this report and except as required by applicable law, the 
Relevant Persons disclaim any obligation or undertaking to publicly 
update any forward looking statements whether as a result of new 
information or future events.

Information on likely developments in the Company’s business 
strategies, prospects and operations for future financial years 
and the expected results that could result in unreasonable 
prejudice to the Company (for example, information that is 
commercially sensitive, confidential or could give a third party a 
commercial advantage) has not been included in this OFR. The 
categories of information omitted include forward-looking estimates 
and projections prepared for internal management purposes, 
information regarding the Company’s operations and projects, 
which are developing and susceptible to change, and information 
relating to commercial contracts.

Non-IFRS financial measures

This OFR and Directors’ Report refers to Origin’s financial 
results, including Origin’s Statutory Profit and Underlying Profit. 
Origin’s Statutory Profit contains a number of items that when 
excluded provide a different perspective on the financial and 
operational performance of the business. Income Statement 
amounts, presented on an underlying basis such as Underlying 
Profit, are non-IFRS financial measures, and exclude the impact of 
these items consistent with the manner in which senior management 
reviews the financial and operating performance of the business. 

20 National Greenhouse and Energy Reporting NGER (cleanenergyregulator.gov.au)
21 Corporate Value Chain (Scope 3) Standard | Greenhouse Gas Protocol (ghgprotocol.org)
22 Scope 3 Calculation Guidance | Greenhouse Gas Protocol (ghgprotocol.org)

52

Annual Report 2022

Appendix

1 Deferred Tax Liability - investment in APLNG

During the year the MRCPS were fully redeemed, with $433 million being received by way of unfranked dividends. The ordinary dividends will 
be unfranked until APLNG starts paying income tax, which is expected to occur in the next few years. An income tax expense of $130 million 
was recognised during the year in respect of these unfranked dividends distributed out of APLNG’s current year earnings.  

There an unrecognised deferred tax liability in respect of our investment in APLNG because the accounting cost base of the investment is 
higher than the tax cost base. The accounting carrying value has been augmented, primarily as a result of our equity accounted share of 
retained profits to date, while the tax cost base reflects only the cash outlaid.

Consistent with accounting standards, the deferred tax liability has not been recognised historically because

1. Origin is able to control the timing of distributions from APLNG which would reverse the temporary difference; and

2.

it has not been probable that the temporary difference will reverse in the foreseeable future via dividends paid from current retained 
earnings, capital returns or a disposal.

As it had become probable in FY2021 that APLNG would begin to distribute cash to shareholders via dividends in the coming years, Origin 
recognised a deferred tax liability of $669 million. During the period, the recognised deferred tax liability was reduced by $178 million, 
reflecting the deferred tax liability associated with the 10 per cent share of APLNG divested, and an additional amount of $217 million was 
recognised, reflecting improved outlook for distributable cash flows from APLNG. This has resulted in a net tax expense and a net increase in 
the recognised deferred tax liability of $39 million.

As at 30 June 2022 we have a deferred tax liability on the balance sheet of $708 million, representing 30 per cent of the dividends expected 
to be paid by APLNG in the foreseeable future from the carried forward equity accounted earnings based on current market assumptions, 
including future oil prices, at our residual interest of 27.5 per cent.

Recognition of the deferred tax liability only impacts the timing of accounting for the tax expense and has no impact on the underlying 
economics or cash flows. There is a remaining unrecognised deferred tax liability at 30 June 2022 of $685 million which may be partly or fully 
recognised in the future.

Going forward, when Origin receives unfranked dividends from APLNG, the proportion paid from earnings in that year will give rise to a tax 
expense, and the balance attributable to carried forward equity accounted earnings will result in partial utilisation of the deferred tax liability.

2 Accounting for large-scale generation certificate trading strategy

Supply and demand for large-scale generation certificates (LGCs) is driven by the rate of new renewable projects coming online, voluntary 
demand for carbon offsets as well as the compliance obligations under the Large-scale Renewable Energy Target (LRET). Renewable project 
delays and generation curtailments have led to a near-term tightening of the LGC market. However, it is expected that the 33 TWh legislated 
target will be exceeded and longer term the market will be oversupplied. The Clean Energy Regulator has acknowledged this and provides 
the option for parties to shift demand from periods of tight supply by deferring the surrender of certificates to later years. Under the scheme, 
parties can defer up to 10 per cent of their obligation at no additional cost and can defer more than 10 per cent by incurring a shortfall charge of 
$65 per certificate that is refundable provided the LGCs are surrendered within three years. Refunds are now non-assessable for tax following 
legislative change and aligns with the non-deductible treatment of the shortfall charge.

This presents an economic opportunity with the LGC forward curve in backwardation and Origin has elected to defer surrender of 2.5 million 
CY2020 certificates in February 2021 and 3.6 million CY2021 certificates in February 2022. Origin also expects to defer approximately 
2.8 million CY2022 certificates due for surrender in February 2023.

FY2022 impact
During FY2022, a shortfall charge of $236 million was paid in relation to CY2021 certificates of which $102 million was accrued in FY2021, 
and a further $92 million was accrued in relation to the first half of CY2022. Included in the FY2022 Underlying Profit is a cost of $74 million, 
reflecting the estimated future surrender cost, based on a weighted average of the current forward price and purchases to date, comprising:

•

1.6 million CY2021 certificates recorded in FY2021 repriced from $12 to $20;

• 2 million CY2021 certificates at $20/certificate; and

• ~ 1.4 million CY2022 certificates at $14/certificate (estimate for the first half of CY2022).

The balance of $151 million is excluded from Underlying Profit.

FY2023 impact
Subject to changes in volume and forward price estimates, we expect to incur a further $92 million for the shortfall charge for the second 
half of CY2021. A cost of $20 million will be recognised in FY2023 Underlying Profit and the balance of $72 million will be excluded from 
Underlying Profit.

Future surrender cost will continue to be reassessed each reporting period.

Operating and Financial Review

53

Statutory
Profit
($m)

Adjustment
($m)

Underlying
Profit
($m)

CY2020 and CY2021 certificates shortfall

Shortfall charge (~4.1 million certificates x $65; $160 million paid and $102 million accrued)

(262)

Expected surrender cost (~2.5 million CY2020 certificates x $19)

Expected surrender cost (~1.6 million CY2021 certificates x $12)

FY2021 impact

Reassessment of FY2021 impact, remaining CY2021 certificates shortfall and CY2022 
certificates shortfall

Shortfall charge accrued (~3.5 million certificates x $65; $236 million paid and 
$92 million accrued)

Reassessment of CY2021 shortfall recorded in FY2021 (~1.6 million certificates x $8)

Expected surrender cost (~2 million CY2021 certificates x $20)

Expected surrender cost (~1.4 million CY2022 certificates x $14)

FY2022 impact

Remaining CY2022 certificates shortfall

Shortfall charge accrued (~1.4 million certificates x $65)

Expected surrender cost (~1.4 million certificates x $14)

FY2023 impact

CY2020 certificates surrender

Surrender (~2.5 million certificates x $19)

Shortfall refund (~2.5 million certificates x $65)

FY2024 impact

CY2021 certificates surrender

Surrender (~3.6 million certificates x $20)

Shortfall refund (~3.6 million certificates x $65)

FY2025 impact

CY2022 certificates surrender

Surrender (~2.8 million certificates x $14)

Shortfall refund (~2.8 million certificates x $65)

FY2026 impact

Total cost of ~8.9 million certificates

-

-

(262)

(225)

-

(225)

(92)

(92)

(46)

160

114

(72)

235

163

(40)

184

144

(158)

262

(46)

(18)

198

225

(13)

(41)

(20)

151

92

(20)

72

46

(160)

(114)

72

(235)

(163)

40

(184)

(144)

-

(46)

(18)

(64)

-

(13)

(41)

(20)

(74)

-

(20)

(20)

-

-

-

-

-

-

-

-

-

-

(158)

54

Annual Report 2022

Directors’ Report

For the year ended 30 June 2022

The Dividend Reinvestment Plan (DRP) will not operate for the 
FY2022 final dividend.

4 Directors and Company Secretary

The Directors of the Company at any time during or since the end 
of the financial year, their qualifications, experience and special 
responsibilities are set out on pages 6 and 7. The qualifications and 
experience of the Company Secretary is also set out below:

Scott Perkins 
Independent Non-executive Chairman

Frank Calabria
Managing Director and Chief Executive Officer

John Akehurst 
(retired 20 October 2021)
Independent Non-executive Director

Ilana Atlas 
Independent Non-executive Director

Maxine Brenner 
Independent Non-executive Director

Greg Lalicker 
Independent Non-executive Director

Mick McCormack 
Independent Non-executive Director

Bruce Morgan 
Independent Non-executive Director

Steven Sargent 
Independent Non-executive Director

Nora Scheinkestel
 (appointed 4 March 2022)
Independent Non-executive Director

Joan Withers 
Independent Non-executive Director

Helen Hardy 
Company Secretary

Helen Hardy joined Origin in March 2010. She was previously 
General Manager, Company Secretariat of a large ASX-listed 
company, and has advised on governance, financial reporting 
and corporate law at PwC and Freehills. Helen is a Chartered 
Accountant, Chartered Secretary and a Graduate Member of the 
Australian Institute of Company Directors. Helen is a director of the 
Governance Institute of Australia and a member of its Legislative 
Review Committee. She holds a Bachelor of Laws and a Bachelor of 
Commerce from the University of Melbourne, a Graduate Diploma in 
Applied Corporate Governance and is admitted to legal practice in 
New South Wales and Victoria.

In accordance with the Corporations Act 2001 (Cth), the Directors 
of Origin Energy Limited (Company) report on the Company 
and the consolidated entity Origin Energy Group (Origin), being 
the Company and its controlled entities for the year ended 
30 June 2022.

The Operating and Financial Review and Remuneration Report form 
part of this Directors’ Report.

1 Principal activities, review of 

operations and significant change in 
state of affairs

During the year, the principal activity of Origin was the operation of 
energy businesses including exploration and production of natural 
gas, electricity generation, wholesale and retail sale of electricity and 
gas, and sale of liquefied natural gas. There have been no significant 
changes in the nature of those activities during the year and no 
significant changes in the state of affairs of the Company during 
the year.

The Operating and Financial Review, which forms part of this 
Directors’ Report, contains a review of operations during the 
year and the results of those operations, the financial position of 
Origin, its business strategies, and prospects for future financial 
years, including likely developments in Origin’s operations in future 
financial years and the expected results of those operations.

2 Events subsequent to balance date

Other than the matters described below, no matters or 
circumstances have arisen since 30 June 2022, which have 
significantly affected, or may significantly affect, the Company’s 
operations, the results of those operations or the Company’s state of 
affairs in future financial years.

On 26 July 2022 Origin announced an additional investment of 
£94 million (approximately A$163 million) in Octopus Energy Group 
Limited to maintain its 20 per cent equity interest.

On 18 August 2022, the Directors determined a final dividend of 16.5 
cents per share, partially franked to 75 per cent, on ordinary shares. 
The dividend will be paid on 30 September 2022.

3 Dividends

a. Dividends paid during the year by the Company were as follows:

$ million

132

220

7.5 cents per ordinary share, 
unfranked, for the full year ended 
30 June 2021, paid 1 October 2021

12.5 cents per ordinary share, 
unfranked, for the half year 
ended 31 December 2021, paid 
25 March 2022

b. In respect of the current financial year, the Directors have 

determined a final dividend as follows:

16.5 cents per ordinary share, 
partially franked to 75 per cent, for 
the full year ended 30 June 2022 
payable 30 September 2022

$ million

284

Directors’ Report

55

5 Directors' meetings

The number of Directors’ meetings, including Board committee meetings, and the number of meetings attended by each Director during the 
financial year, are shown in the table below:

Directors

J Akehurst3

I Atlas

M Brenner

F Calabria

G Lalicker

B Morgan

M McCormack

S Perkins

S Sargent

N Scheinkestel4

J Withers

Scheduled

Additional

Audit

Sustainability Nomination

Safety & 

Remuneration,
People & 
Culture

Risk

H1

A2

H1

A2

H1

A2

H1

A2

H1

A2

H1

A2

H1

A2

3

8

8

8

8

8

8

8

8

3

8

3

8

8

8

8

8

8

8

8

2

8

1

5

5

5

5

5

5

5

5

2

5

1

5

5

5

5

5

5

5

5

2

4

-

-

4

-

-

4

4

4

-

1

4

-

-

4

-

-

4

4

4

-

1

4

1

-

3

4

3

1

4

4

4

-

-

1

-

3

4

3

1

4

4

4

-

-

1

-

3

-

-

3

-

3

3

1

2

1

-

3

-

-

3

-

3

3

1

2

-

3

2

-

2

-

5

5

5

-

-

-

3

2

-

2

-

5

5

5

-

-

2

2

5

-

-

5

-

5

5

2

5

2

2

5

-

-

5

-

5

5

2

5

1 Number of meetings held during the time that the Director held office or was a member of the Committee during the year.

2 Number of meetings attended.

3 Prior to the date of retirement on 20 October 2021.

4 From the date of appointment on 4 March 2022.

The Board held eight scheduled meetings, including an annual strategic review and five additional meetings to deal with urgent matters. There 
were also two scheduled workshops. In addition, the Board conducted in-person and virtual visits of Company operations at various sites and 
met with operational management during the year.

6 Directors’ interests in shares, Options and Rights

The relevant interests of each Director as at 30 June 2022 in the shares and Options or Rights over such instruments issued by the companies 
within the consolidated entity and other related bodies corporate at the date of this report are as follows:

Director

I Atlas

M Brenner

F Calabria

G Lalicker

B Morgan

M McCormack

S Perkins

S Sargent

N Scheinkestel

J Withers

Ordinary 
shares held
directly 
and indirectly

50,000

28,367

595,361

100,000

47,143

100,000

80,000

41,429

33,365

26,000

Restricted
shares

Options over
ordinary 
shares

-

-

-

-

Performance Share Rights
(PSR) over ordinary shares

Restricted Share Rights
(RSR) over ordinary shares

-

-

-

-

444,281

401,2881

872,1471

419,4031

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1 The Exercise price for Options is $7.37 and the Exercise price for Rights is Nil.

No Director other than the Managing Director and Chief Executive Officer participates in the Company’s Equity Incentive Plan.

56

Annual Report 2022

Securities granted by Origin

Non-executive Directors do not receive Options or Rights as part of their remuneration.   Non-executive Directors are eligible to participate in 
the Non-executive Director Share Plan (NEDSP).  During the year, one Non-executive Director elected to participate in the NEDSP, however 
the first allocation of Rights is not expected until FY23. 

The following securities were granted to the five most highly remunerated officers (other than Directors) of the Company during the year 
ended 30 June 2022:

J Briskin

G Jarvis

A Lucas

A Thornton

L Tremaine

Restricted
Shares

Performance 
Share Rights

Restricted 
Share Rights

Matching Share 
Plan Rights1

93,252

73,170

46,858

22,713

104,872

77,331

79,049

63,067

24,794

87,385

77,331

79,050

63,069

24,792

87,384

443

443

-

443

443

1 Matching Share Plan Rights were granted in accordance with the Origin Employee Share Plan rules and disclosed to the ASX at the time of grant. The Employee Share Plan 

is available to all eligible Origin employees.  Refer to Section 3.8 of the Remuneration Report for further details.

The awards of Restricted Shares, Performance Share Rights, and Restricted Share Rights were made in accordance with the Company’s Equity 
Incentive Plan as part of the relevant Executive’s remuneration. Further details on Rights granted during the financial year, and unissued shares 
under Options and Rights, are included in Section 7 of the Remuneration Report.

No Options or Rights were granted since the end of the financial year.

Origin shares issued on the exercise of Options and Rights

Options
No Options granted under the Equity Incentive Plan were exercised during or since the year ended 30 June 2022, so no ordinary shares in 
Origin were issued as a result.

Rights
662,907 ordinary shares of Origin were allocated from the Origin Energy Limited Employee Share Trust during the year ended 30 June 2022 
on the vesting and exercise of RSRs and PSRs under the Equity Incentive Plan and Matching Share Plan Rights granted under the Employee 
Share Plan. No amounts were payable on the vesting of these RSRs, PSRs and Matching Share Plan Rights and, accordingly, no amounts 
remain unpaid in respect of any of those shares.

Since 30 June 2022, 1,145 ordinary shares were allocated from the Origin Energy Limited Employee Share Trust on the vesting of Matching 
Share Plan Rights granted under the Employee Share Plan.

All shares in the Origin Energy Limited Employee Share Trust were purchased on market.

7 Environmental regulation and performance

The Company’s operations are subject to environmental regulation under Commonwealth, State, and Territory legislation. For the year 
ended 30 June 2022, the Company notified 17 environmental reportable incidents to the relevant regulators (Integrated Gas: 10 and Energy 
Supply and Operations: 7). All of these incidents resulted in minor environmental consequences with the appropriate level of investigation 
undertaken. All incidents are investigated, and lessons learned captured and shared across the Company.

During the year ended 30 June 2022, Integrated Gas received one Environmental Protection Order, one penalty infringement notice, two 
breach notices, and nine formal warning letters from the Department of Environmental Science in Queensland.

Directors’ Report

57

8 Indemnities and insurance for 

10 Non-audit services

Directors and Officers

Under its Constitution, the Company may indemnify current and 
past Directors and Officers for losses or liabilities incurred by them as 
a Director or Officer of the Company or its related bodies corporate 
to the extent allowed under law. The Constitution also permits 
the Company to purchase and maintain a Directors’ and Officers’ 
insurance policy. No indemnity has been granted to an auditor of the 
Company in their capacity as auditor of the Company.

The Company has entered into agreements with current Directors 
and certain former Directors whereby it will indemnify those 
Directors from all losses or liabilities in accordance with the terms of, 
and subject to the limits set by, the Constitution.

The agreements stipulate that the Company will meet the full 
amount of any such liability, including costs and expenses to 
the extent allowed under law. The Company is not aware of any 
liability having arisen, and no claim has been made against the 
Company during or since the year ended 30 June 2022 under 
these agreements.

During the year, the Company has paid insurance premiums in 
respect of Directors’ and Officers’ liability, and legal expense 
insurance contracts for the year ended 30 June 2022.

The insurance contracts insure against certain liability (subject to 
exclusions) of persons who are or have been Directors or Officers of 
the Company and its controlled entities. A condition of the contracts 
is that the nature of the liability indemnified and the premium 
payable not be disclosed.

9 Auditor independence

There is no former partner or director of EY, the Company’s auditors, 
who is or was at any time during the year ended 30 June 2022 
an officer of the Origin Energy Group. The auditor’s independence 
declaration for the financial year (made under section 307C of 
the Corporations Act 2001 (Cth) is attached to and forms part of 
this Report.

The amounts paid or payable to EY for non-audit services provided 
during the year was $879,000 (shown to the nearest thousand 
dollars). Amounts paid to EY are included in note G7 to the full 
financial statements.

Based on written advice received from the Audit Committee 
Chairman pursuant to a resolution passed by the Audit Committee, 
the Board has formed the view that the provision of those non-audit 
services by EY is compatible with, and did not compromise, the 
general standards of independence for auditors imposed by the 
Corporations Act 2001 (Cth). The Board’s reasons for concluding 
that the non-audit services provided by EY did not compromise its 
independence are:

• all non-audit services provided were subjected to the Company’s 
corporate governance procedures and were either below the 
pre- approved limits imposed by the Audit Committee or 
separately approved by the Audit Committee;

• all non-audit services provided did not, and do not, undermine 
the general principles relating to auditor independence as they 
did not involve reviewing or auditing the auditor’s own work, 
acting in a management or decision making capacity for the 
Company, acting as an advocate for the Company or jointly 
sharing risks and rewards; and

•

there were no known conflict of interest situations nor any 
other circumstance arising out of a relationship between Origin 
(including its Directors and Officers) and EY which may impact 
on auditor independence.

11 Proceedings on behalf of the 

Company

The Company is not aware of any proceedings being brought on 
behalf of the Company, nor any applications having been made in 
respect of the Company under section 237 of the Corporations Act 
2001 (Cth).

12 Rounding of amounts

The Company is of a kind referred to in ASIC Corporations 
(Rounding in Financial/ Directors’ Reports) Instrument 2016/191 
dated 24 March 2016 and, in accordance with that class order, 
amounts in the financial report and Directors’ Report have been 
rounded off to the nearest million dollars unless otherwise stated.

13 Remuneration

The Remuneration Report forms part of this Directors’ Report.

58

Annual Report 2022

Remuneration 
Report

For the year ended 30 June 2022

The Remuneration Report for the year ended 30 June 2022 (FY2022) forms part of the Directors’ Report. It has been prepared in accordance 
with the Corporations Act 2001 (Cth) (the Act) and Accounting Standards, audited as required by section 308(3C) of the Act.

Letter from the Chairman of the Remuneration, People and Culture Committee

Dear Shareholder

On behalf of the Remuneration, People and Culture Committee (RPCC) and the Board, I am pleased to present the Remuneration Report 
for FY2022.

The Company has delivered solid results in another challenging year characterised by the extraordinary volatility of commodity prices and 
an uncertain regulatory environment. The higher earnings from Integrated Gas as Australia Pacific LNG (APLNG) benefited from strong 
commodity prices were offset by a decline in Energy Market earnings. These were associated, in part, with a decline in retail prices (Default 
Market Offers) set when wholesale prices were low during COVID-19 and the recent rise in fuel prices.

The remuneration framework and governance processes have again shown that remuneration outcomes align with business outcomes and 
the shareholder experience. The remuneration framework has effectively dealt with the combination of market volatility, uncertainty and 
operational challenges during the period.

FY2022 remuneration outcomes

Although the operating environment presented significant and varying challenges during the year, Origin’s share price rose 27.1 per cent and 
recorded a Total Shareholder Return (TSR) of 32.4 per cent over the year, reflecting the resilience of our portfolio.

Key factors driving remuneration outcomes for FY2022 included:

•

•

record-high revenue off the back of a strong rebound in commodity prices;

superior field performance and disciplined cost management that has enabled the Integrated Gas business to leverage the buoyant 
commodity market;

• continuing progress on the transformation of the retail business, including the rollout of the Kraken technology platform and new operating 

model, to provide a superior customer experience at a lower cost (customer migration is on track for completion in mid FY2023);

•

strong market support following our announcement of the proposed closure of Eraring and the proposed installation of a large-scale 
battery, reflecting our commitment to playing a leading role in Australia’s energy transition.  Constructive response has also been received 
from our employees and the local community in relation to our comprehensive plans for a just and effective transition;

• penalties of $17 million in relation to regulatory compliance failures with the implementation of certain customer payment plans. Significant 
action has been taken since to remedy the problem. Our Power On program currently supports  and protects around 47,000 customer 
accounts in financial hardship, and we are focused on supporting them effectively through rising costs of living and the impact of recent 
price increases;

• continuing strong performance of our strategic investment in Octopus Energy, now valued at more than £3 billion (GBP), and disciplined 
capital management including crystallisation of some of the value in APLNG on the sale of 10 per cent of our interest; additionally our 
acquisition of WINconnect, which adds further scale to the Community Energy Services business.

Management’s efforts in achieving these strong financial and operating outcomes, while managing a diverse and complex business, have 
resulted in the following incentive outcomes for FY2022:

•

the outcome for the CEO’s Short Term Incentive (STI) scorecard was 74.6 per cent of maximum (124.6 per cent of target);

• other Executive Key Management Personnel (KMP) outcomes range between 69.3 and 80.4 per cent of maximum (115.8 to134.3 per cent 

of target); and

•

the aggregate outcome was 73.6 per cent of maximum (122.9 per cent of target).

Long Term Incentive (LTI) awards tested during the year partially vested (25.0 per cent). One half of the August–October 2018 LTI grants was 
subject to a relative TSR hurdle and failed to vest. The other half was subject to two separate Return on Capital Employed (ROCE) hurdles for 
the Integrated Gas and Energy Markets businesses respectively, both of which partially vested at threshold levels. The overall vesting level was 
25.0 per cent. 

LTI vesting outcomes for FY2023 will be determined at the end of August 2022. Indicatively the vesting outcome is expected to be around 
16 per cent. Details of LTI outcomes are explained in more detail in Section 4.2.2.

Remuneration Report

59

FY2022 remuneration framework and levels

Fixed Remuneration and Non-executive Director fees

There were no changes to the level or structure of Non-executive Director (NED) fees in FY2022.

Following comprehensive benchmarking in line with our policy, the Fixed Remuneration (FR) of the CEO was increased by 2.7 per cent and 
the FR of other Executive KMP increased by an average of 2.3 per cent, in line with adjustments to the workforce more generally.

Short Term Incentive Plan

The architecture for the STI Plan (STIP) was refined for FY2022 to better reflect the Company’s key performance criteria, resulting in 
60 per cent being based on financial outcomes and the balance of 40 per cent based on the strategic priorities that build capability for 
Origin’s future.

A key feature of the revised STIP design is that, while the scorecard outcomes are numerically determined on output measures and strategic 
priorities, the scorecard performance is also subject to review of how the results were achieved. 

Long Term Incentive Plan

There is no change to the LTI Plan (LTIP) in FY2022. The architecture remains the same as that adopted in FY2020 and is fully described in 
Section 3.5.

FY2023 remuneration

Each year the RPCC considers the remuneration framework’s continuing appropriateness in terms of the organisation’s strategies and 
priorities. It also considers the framework’s effectiveness and capacity to provide realisable remuneration that attracts and keeps the right 
people, drives their focus and rewards execution.

The RPCC concluded that the current framework and policy settings remain balanced and appropriate, and accordingly, no changes are 
planned for FY2023.

In terms of changes to the level of FR for FY2023, adjustments across the wider organisation are expected to average in the 3.5–4.0 per cent, 
reflecting prevailing market conditions, and movements for Executive KMP will be consistent with this.

Finally, there will be no changes to the structure or level of NED fees for FY2023.

Steven Sargent 
Chairman, Remuneration, People and Culture Committee

60

Annual Report 2022

Report structure

The Remuneration Report is divided into the following sections:

1. Key Management Personnel

2. Remuneration link with Company performance and strategy

3. Remuneration framework details

4. Company performance and remuneration outcomes

5. Governance

6. Non-executive Director fees

7. Statutory tables and disclosures

1 Key Management Personnel

The Remuneration Report discloses the remuneration arrangements and outcomes for people listed below: individuals who have been 
determined as KMP as defined by AASB 124 Related Party Disclosures. Members of the RPCC are identified in the last column.

Name

Role

Appointed

Retired

Term as KMP 
in FY2022

RPCC

e
v
i
t
u
c
e
x
e
-
n
o
N

e
v
i
t
u
c
e
x
E

S Perkins

I Atlas

M Brenner

G Lalicker

Chairman, Independent

Independent

Independent

Independent

d
r
a
o
B

M McCormack

Independent

B Morgan

S Sargent

Independent

Independent

N Scheinkestel

Independent

J Withers

J Akehurst

F Calabria

L Tremaine

J Briskin

G Jarvis

A Thornton

Independent

Independent

Chief Executive Officer (CEO)

Chief Financial Officer (CFO)

Executive General Manager, Retail

Executive General Manager, Energy 
Supply and Operations

Executive General Manager, 
Integrated Gas

20-Oct-20

19-Feb-21

15-Nov-13

1-Mar-19

18-Dec-20

16-Nov-12

29-May-15

4-Mar-22

21-Oct-20

29-Apr-09

19-Oct-16

10-Jul-17

5-Dec-16

5-Dec-16

1-Nov-21

20-Oct-21

✓

✓

✓

Chair

Full

Full

Full

Full

Full

Full

Full

Part

Full

Part

Full

Full

Full

Full

Part

The term ‘Other Executive KMP’ (abbreviated as ‘Other’ in tables and charts) refers to Executive KMP excluding the CEO.

‘Executive team’ is a broader reference to the Executive Leadership Team (ELT).

Remuneration Report

61

2 Remuneration link with Company performance and strategy

2.1 Overview of remuneration framework

Our remuneration framework is designed to support the Company’s strategy and to reward our people for its successful execution. It is 
designed around three principles, summarised in the diagram below.

Strategy

Connecting customers to the energy and technologies of the future

Leading customer experience and solutions; accelerating towards clean energy; embracing a decentralised and digital future; striving to be a 
low-cost operator; developing resources to meet growing gas demand; maintaining disciplined capital management.

Remuneration principles

Attract and retain the right people

Pay fairly

Drive focus and discretionary effort

The framework secures high-calibre individuals from 
diverse backgrounds and industries with the talent to 
execute the strategy.

The framework is market competitive. 
Outcomes are a function of Company 
performance, reflect our behavioural 
expectations and our values, and align 
with shareholder expectations.

The framework encourages Executives 
to think and act like owners and to 
deliver against long-term strategies and 
the short-term business priorities that are 
expected to drive long-term outcomes.

Remuneration framework

Fixed Remuneration

Short Term Incentive

Long Term Incentive

Variable Remuneration (at risk)

Outcomes subject to Board discretion and adjustment, see Section 5.3

Purpose

To attract and retain the right people 
and pay fairly and competitively

Variable pay determined by performance 
against an annual scorecard. Allows pay 
to be reduced below intended levels 
where achievements are below target 
levels and to reward outperformance 
when above target levels. Drives focus and 
discretionary effort

Variable pay designed to encourage 
focus on long-term performance and 
sustainability and to build executive share 
ownership in the business

Delivery

Cash salary, superannuation and 
benefits delivered through the year

Annual award based on performance 
scorecard outcomes

Half paid in cash after year end and 
half awarded after year end as shares 
restricted for two years

Annual grant (allocated at face value) of 
conditional share rights vesting over three 
to five years, all deferred for five years.

Half conditional on Board review of 
underpinning metrics and half subject 
to a relative total shareholder return 
performance hurdle

Details

Section 3.1

Sections 3.3 and 3.4

Sections 3.5 and 3.6

2.2 Board oversight

Remuneration outcomes are subject to Board oversight and strong governance controls as set out in Section 5.3. Origin believes that 
observance of our values and leadership behaviours and the quality of our relationships with our customers and the community are 
inextricably linked to the creation of shareholder value. Prior to making remuneration determinations, the full Board conducts formal reviews of 
management that incorporate individual performance, risk management and leadership behaviours. The Board may adjust variable outcomes 
up or down.

 
 
62

Annual Report 2022

2.3 Minimum Shareholding Requirement for Executive KMP

A key objective of the remuneration framework is to promote employee share ownership and to encourage employees to think and act 
as owners. Equity is therefore a key element of remuneration, representing at least half of STI awards and the whole of LTI awards. This is 
supplemented by other share plan arrangements, including salary sacrifice, share purchase and matching plans (see Section 3.8).

Executive KMP are required to build and maintain a substantial shareholding in the Company (that is, the Minimum Shareholding Requirement 
(MSR)). Executives are not expected to purchase shares to meet the requirement. The MSR operates as an additional trading restriction 
which prevents the disposal of shares (other than to cover arising tax liabilities) that have been generated from executive share plans 
until the MSR has been achieved and maintained. The requirement will normally be achieved within four years of the first equity grant 
following appointment.

The MSR is referenced to one of two nominal multiples of FR, one for the CEO and one applicable to all Other Executive KMP. Following 
changes to the LTIP in August 2020, the reference multiples are scheduled to increase from 200 per cent of the FR to 250 per cent of the 
FR for the CEO and from 100 per cent to 150 per cent of the FR for Other Executive KMP, effective after August 2023, which is the earliest 
date from which the new plan can begin to impact vesting patterns. 

For transparency, simplicity and practicability1, the MSR is expressed as a number of shares rather than a dollar value. From time to time, the 
Board changes this number, which is determined by taking into account changes in FR, changes to STI deferral or LTI opportunity levels, and 
the medium-term share price trend.  The current determinations of 620,000 shares (CEO) and 130,000 shares (Other Executive KMP) are 
scheduled to increase to 720,000 and 160,000, respectively, in FY2024.

Share rights awarded under incentive plans do not count towards the MSR obligation.

Table 7.4 (a) shows that the CEO and Executive KMP exceed both the current and FY2024 MSR requirements, with the exception of new 
appointee Andrew Thornton, whose accumulation is on track to meeting his MSR.

3 Remuneration framework details

3.1 Fixed Remuneration

FR comprises cash salary, employer contributions to superannuation and salary sacrifice benefits. It takes into account the size and complexity 
of the role, and the skills and experience required for success in the role.

FR is reviewed annually, but increases are not guaranteed. Roles are benchmarked to the median of corresponding roles in organisations 
with comparable activity and scale and with which Origin competes for talent.2 In the absence of special factors, new or newly promoted 
incumbents generally commence below this reference point and move to the median over time. FR may be positioned above this reference 
point where it is appropriate to reward sustained high performance, for key talent retention purposes or where it is necessary to attract and 
secure key skills to fill a business-critical role. Accordingly, the median positioning may vary between approximately the 40th and 60th 
percentile of the reference market.

3.2 Variable Remuneration

Variable Remuneration (VR) enables pay to be adjusted upwards or downwards, depending on whether performance outcomes exceed or 
fall short of expectations. Unlike bonus systems that pay for performance above expectations but do not reduce pay where performance falls 
short of them, VR does both. It is important to note that the total of FR plus VR is set and benchmarked such that the at target outcome 
represents the satisfaction of expected performance.

VR comprises the total of STI and LTI:

• The minimum VR is zero, where no STI or LTI is awarded, or where the STI scorecard outcome is zero and LTI is not awarded or all of it fails 

to vest, or where discretion is exercised to reduce such awards or vesting outcomes to zero.

• The target VR represents the total of STI awarded at the target level, plus the target value of LTI (calculated as 50 per cent of the face 

value3 of Performance Share Rights (PSRs) and 100 per cent of the face value of Restricted Share Rights (RSRs)). The LTI components are 
described in Section 3.5. The LTI target value represents a risked or expected (probabilistic) vesting outcome.

• The maximum VR is the total of STI awarded at the maximum level, plus the full face value of all LTI assuming 100 per cent vesting.

VR outcomes are subject to Board oversight and discretionary adjustment as summarised in Sections 4.2 and 5.3.

1 A practical consideration is that Executives periodically need to sell shares to meet Employee Share Scheme tax obligations.  Any process of tagging shares for MSR according 
to the share price of specific shares at grant or allocation (for example) would become exceedingly complex to track when parcels are disposed of according to other tags 
(such as cost bases for capital gains tax purposes).

2 The prime references are to (a) ASX-listed organisations ranked between seven and 70 by average two-year market capitalisation (excluding foreign domiciles, listed 

investment companies or similar) and to (b) organisations with revenues between 40 per cent and 250 per cent of Origin’s revenue, always including AGL, APA Group, Santos 
and Woodside.

3 The face value at the date of grant is represented by the share price on the date of grant. The face value of deferred equity elements (Deferred STI and LTI) is represented by 

the current share price (present-day value) because it is not possible to predict future share prices.

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63

3.3 Total Remuneration

Total Remuneration (TR) is the sum of FR and VR.

TR at target (TRT)

TR maximum (TRM)

=

=

FR

FR

+

+

target VR

maximum VR

TRT is benchmarked to the median of equivalent TRT in the reference market, with the intention that when Origin’s outcomes are at their 
maximum possible (that is, TRM), they will be comparable to the top quartile of the reference TRT.

3.4 FY2022 Short Term Incentive Plan details

The following is a detailed description of how the STIP operates.

Parameter

Award basis

Details

The annual performance cycle is 1 July to 30 June. Individual balanced scorecards are agreed, with shared Group 
objectives and targeted divisional objectives. Objectives are set across financial categories (generally 60 per cent of the 
weightings) and non-financial categories (generally 40 per cent). The CEO’s FY2022 scorecard details and outcomes 
are shown in Section 4.2.

Scorecard operation

Individual objectives on the scorecard are referenced to three performance levels: threshold, target and stretch (with 
pro-rating between each).

Threshold performance represents the lower limit of rewardable outcome for an individual objective – one that 
represents a satisfactory outcome, often achieving year-on-year improvement and contribution towards delivery of 
annual plans but falling short of the target level. Threshold performance yields 20 per cent of maximum (33 per cent 
of target).

Target represents the expectation for achieving robust annual plans, yielding 60 per cent of maximum.

Stretch performance represents the delivery of exceptional outcomes well above expectations, yielding the maximum 
payout (corresponding to 167 per cent of target).

Opportunity level

Award calculation 
and assessment

Delivery and timing

The opportunity level for FY2022 for all Executive KMP was unchanged at 100 per cent FR at target, with a capped 
maximum of 167 per cent of FR.

Achievement and performance against each Executive’s balanced scorecard is assessed annually as part of the 
Company’s broader performance review process and is subject to Board oversight and adjustment as detailed in 
Sections 2.2 and 5.3.

The STI award is delivered in two parts, a cash element and a deferred element, each representing half of the award. 
Both elements are delivered in August to September following the end of the financial year to which they relate. The 
deferred element is delivered in the form of Restricted Shares (RSs) that are restricted for two years. The award is subject 
to forfeiture if the service conditions are not met (as set out below).

RS allocation

Number of RSs = Deferred STI amount divided by the 30-day volume weighted average price (VWAP) to 30 June of 
the performance year just completed, rounded to the nearest whole number.

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Annual Report 2022

Parameter

Details

Service conditions and 
cessation of employment

Release

Dividends

Sourcing of RSs

Unless the Board determines otherwise:

• For resignation or dismissal with cause, the whole of an STI award is forfeited and RSs within their restriction period 

are forfeited.

•

In cases of death, disability, redundancy or genuine retirement (good leaver circumstances), to the extent that an STI 
award is payable, it is delivered wholly in cash.

RSs in respect of FY2022 STI awards will be released on the second trading day following the release of full-year financial 
results for FY2024, subject to the service conditions being met and the service period completed (or else as described 
under ‘Service conditions and cessation of employment’ above).

As the STI has been earned and awarded, RSs carry dividend entitlements and voting rights.

The Board’s practice is to purchase shares on market, but it may issue shares or make the award in alternative forms, 
including deferred cash.

Governance and MSR

After restrictions on RSs are lifted, trading is subject to the MSR (see Section 2.3), to the Company’s Dealing in Securities 
Policy, and to the malus and clawback provisions in Section 5.3.

3.5 FY2022 Long Term Incentive Plan details

The operation of the LTIP is described below.

Parameter

Award basis

Opportunity and 
value range

Details

LTIP awards are conditional grants of equity that may vest in the future, subject to the meeting of performance 
conditions and/or underpinning criteria, and subject also to the Executive meeting service and personal conduct 
and performance requirements. Awards are considered annually for approximately 60 senior roles representing those 
having significant influence on long-term company performance.

The LTIP opportunity level reflects the capacity of the role to influence long-term sustainable growth and performance, 
and is set with reference to market benchmarks (see Section 3.2). Opportunity levels are expressed as a percentage of 
FR (at the commencement of the financial year in which the grant is to be made) and in terms of the total face value of 
the awards (that is, not discounted for risk).

LTIP opportunity (percentage of FR)

Executive KMP

Minimum

Maximum

CEO

Other

0

0

120

80

Awards are granted at face value, between the minimum and maximum opportunity level. Prior to the determination of 
LTIP grants, the Board considers whether there are any reasons to reduce or not make an award. But in the normal course 
of events, awards are granted at the maximum opportunity level (given that they are subject to future performance and 
underpinning conditions, additional to malus and clawback processes). The value of an award is as follows.

• The minimum value is zero (which will be the case if the award fails to vest, is forfeited or is not awarded).

• The target value represents the risked or expected value of the maximum grant, taking into account the likelihood 

of vesting.

• The maximum value represents the present-day face value of the maximum grant, assuming that 100 per cent of the 

grant vests, ignoring the risks of achieving performance conditions and of the service requirements.

The actual or realised value of an LTIP award depends on the level of vesting and the share price at the time of vesting, 
neither of which can be determined in advance.

LTIP awards are delivered in the form of share rights. The share rights do not carry any dividend or voting entitlements.

Each vested share right represents a right to a fully paid ordinary share (as an RS) in the Company and such additional 
shares equal to the value of dividends (as determined by the Board) in the period from grant to exercise on the 
underlying share on a reinvested basis. The terms and conditions applying to the share rights or RSs apply also to the 
dividend-equivalent amounts and shares. The Board retains a discretion to make a cash equivalent payment to settle the 
dividend-equivalent amount in lieu of an allocation of shares. The share rights are granted at no cost because they are 
awarded as remuneration.

No dividend or dividend-equivalents are received by participants on share rights during a vesting period, and none on 
share rights that do not vest. Shares allocated upon vesting of rights (including rights to a dividend-equivalent amount) 
carry the same dividend and voting rights as other shares (including while they are subject to a holding lock).

Vehicle, dividends and 
voting rights

Number and type of 
share rights

The total number of share rights to be granted is calculated by taking the face value of the award being made and 
dividing it by the 30-day VWAP of Origin shares to 30 June preceding the grant, rounded to the nearest whole number.

The award is divided into two halves, each with its own vesting conditions.

One half of the share rights is awarded as PSRs, that are subject to a Relative TSR (RTSR) performance condition with 
a conventional vesting scale.

The other half of the share rights is awarded as RSRs where vesting is subject to Board discretion with reference to a suite 
of underpinning conditions as described below. The number of RSRs will be divisible by three because this tranche is 
further divided into three equal parts, which vest progressively as described below.

Vesting and release

All of the share rights are deferred for five years.

Remuneration Report

65

Parameter

Details

PSR tranche

RSR tranche

The PSR tranche vests (subject to achievement against the RTSR vesting scale) into RSs at the end of the three-year 
performance period, remaining under a holding lock for a further two years.

The RSR tranche vests (subject to Board discretion) progressively after three, four and five years. The part which vests 
after three years is into RSs that remain under a two-year holding lock; the part vesting after four years is locked for a 
further year; and the final part vests after five years vests into unrestricted shares.

The vesting dates corresponding to the three-year, four-year and five-year periods are determined as the second trading 
day after the release of the respective full year results. For FY2022 awards granted in September and October 2021 
(following completion of the FY2021 year), these are expected to be 26 August 2024, 25 August 2025 and 24 August 
2026 (Release Date).

At all times before and after vesting, and after release from a holding lock, the share rights and shares remain subject 
to malus and clawback provisions (Section 5.3), and may also be subject to trading restrictions arising from the MSR 
(Section 2.3) and from the Company’s Dealing in Securities Policy.

RTSR measures the Company’s TSR performance relative to a reference group of companies, assuming reinvestment of 
dividends, measured over three financial years with vesting deferred for a further two years. It has been chosen because 
it aligns Executive reward with shareholder returns. It rewards only when Origin outperforms the reference group; it 
does not reward overall market uplifts. The market reference group is the S&P/ASX 501, representing a transparent and 
widely understood group of companies with which Origin competes for investors, skills and talent. Narrower comparator 
groups have not been chosen due to the small number of companies with investment profiles and operations similar to 
those of Origin.

In calculating RTSR, share prices are determined using three-month VWAPs to the start and end of the 
performance period.

Vesting occurs only if Origin’s TSR over the performance period ranks it higher than the 50th percentile of the group. 
Half of the PSRs vest on satisfying that condition, and all of the PSRs vest if Origin ranks at or above the 75th percentile. 
Straight-line pro-rata vesting applies between these two points.

In contrast to the PSR tranche, which is conditional on performance against a single external financial metric, the 
RSR tranche is designed to vest in full unless there is a material deviation from Board expectations of performance 
across approximately 30 key metrics. These metrics reflect the underlying health, performance and sustainability of the 
Company and, since FY2021, are reported annually as the Key Sustainability Performance Measures in the Company’s 
annual Sustainability Report. They cover the four dimensions of Customer, Community, Planet (climate change and 
environment) and People. If, at the review date for vesting, the Board considers management’s performance against the 
totality of these underpinning indicators has not met its expectations, then it may reduce or cancel vesting accordingly.

Together, the PSR and RSR tranches provide a balance that incorporates a hard single financial test with a holistic 
assessment across the full range of performance areas that will position the Company for ongoing success. This 
approach aligns management interests with those of shareholders and stakeholders through the building of Executive 
share ownership and driving focus across the full range of key measures that align operations with long-term strategy.

The RSR vesting review process incorporates outcomes from the Executive Performance Review (described in 
Section 5.3) and overall performance with reference to the underpinning indicators in addition to risk and reputation 
matters. Vesting decisions will be disclosed in the relevant Remuneration Report accompanied by a rationale for the 
Board’s determinations.

Service conditions and 
cessation of employment

Unless the Board determines otherwise:

• For resignation or dismissal with cause, all share rights are forfeited.

•

In cases of death, disability, redundancy or genuine retirement (good leaver circumstances), share rights remain on 
foot subject to their original terms and conditions (other than the continuing service condition).

Sourcing

The Board’s preferred approach is to satisfy the vesting of share rights through the purchase of shares on market, but it 
may issue shares or make the award in alternative forms, including cash or deferred cash.

1 The TSR reference group is set at the commencement of the performance period. For FY2022, it comprised: The a2 Milk Company Ltd, Medibank Private Ltd, Ampol 

Ltd, Macquarie Group Ltd, Aristocrat Leisure Ltd, National Australia Bank Ltd, Amcor PLC, Newcrest Mining Ltd, Australia and New Zealand Banking Group Ltd, Northern 

Star Resources Ltd, APA Group, Afterpay Ltd, Qantas Airways Ltd, ASX Ltd, QBE Insurance Group Ltd, Aurizon Holdings Ltd, Ramsay Health Care Ltd, BHP Group Ltd, 

Rio Tinto Ltd, Brambles Ltd, South32 Ltd, Commonwealth Bank of Australia, Scentre Group, Cochlear Ltd, Stockland Corporation Ltd, Coles Group Ltd, Sonic Healthcare 

Ltd, Computershare Ltd, Santos Ltd, CSL Ltd, Suncorp Group Ltd, Dexus, Sydney Airport Holdings Pty Ltd, Endeavour Group Ltd, Transurban Group, Fortescue Metals 

Group Ltd, Telstra Corporation Ltd, Goodman Group, Treasury Wine Estates Ltd, GPT Group, Westpac Banking Corp, Insurance Australia Group Ltd, Wesfarmers Ltd, James 

Hardie Industries PLC, Woolworths Group Ltd, LendLease Group, Woodside Energy Group Ltd, Mirvac Group and Xero Ltd. Companies are not replaced (for example, as a 

consequence of merger, acquisition or delisting) unless the Board determines otherwise.

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Annual Report 2022

3.6 Variable Remuneration components and timelines

The following chart summarises the components of Variable Remuneration and the timelines for delivery.

3.7 Remuneration range and mix

The potential range for the CEO’s total remuneration in FY2022 was between a minimum of $1.88 million (his FR) to a target of $5.452 million 
and a maximum of $7.276 million (FY2021: $7.086 million). The remuneration mix at target and at maximum is shown in the chart below, which 
shows the significant proportion of variable or performance-based pay and delivery in equity. Variable or performance-based pay represents 
65.5 per cent of the CEO’s package at target outcomes, and 74.2 per cent at maximum outcomes. Forfeitable equity represents 48.3 per cent 
at target outcomes and 52.6 per cent at maximum outcomes. Corresponding figures for the average remuneration mix for other Executive 
KMP are also shown in the table below.

Remuneration component

CEO

Other Executive KMP (average)1

$’000, %TR

FR cash

STI cash

STI deferred equity

LTI conditional deferred equity

Total Remuneration

Variable (performance-
related) component

Equity component

Target

1,880 34.5%

940 17.2%

940 17.2%

1,692 31.1%

5,452 100%

65.5%

48.3%

Maximum

1,880 25.8%

1,570 21.6%

1,570 21.6%

2,256 31.0%

7,276 100%

74.2%

52.6%

Target

947 38.5%

474 19.2%

474 19.2%

568 23.1%

Maximum

947 28.8%

791 24.1%

791 24.1%

758 23.0%

2,463 100%

3,287 100%

61.5%

42.3%

71.2%

47.1%

1 A Thornton's remuneration is not pro-rated for the KMP term for the purpose of these calculations

Remuneration Report

67

3.8 Other equity/share plans

The Company operates a universal Employee Share Plan in which all full-time and part-time employees can choose to be eligible for awards of 
up to $1,000 worth of Company shares annually, or else participate in a salary sacrifice scheme to purchase up to $4,800 in shares annually.

Under the $1,000 scheme (the General Employee Share Plan (GESP)), shares are restricted for three years or until cessation of employment, 
whichever occurs first.

Under the Matching Share Plan (MSP), shares purchased under the sacrifice scheme are restricted for two years or until cessation of 
employment, whichever occurs first. For every two shares purchased under the salary sacrifice scheme within a 12-month cycle, participants 
are granted one Matching Right (MR) at no cost. The MRs vest two years after the cycle began, provided that the participant remains 
employed by the Company at this time. Each MR entitles the participant to one fully paid ordinary share in the Company, or in certain limited 
circumstances a cash equivalent payment. The MRs do not have any performance hurdles as they have been granted to encourage broad 
participation in the scheme across the Company, and to encourage employee share ownership. All shares are currently purchased on market.

Directors are not eligible to participate in the above schemes, but may participate in the NED Share Plan (NEDSP) by sacrificing Board fees. 
This plan is intended to facilitate share acquisition, enabling new Directors to meet their MSR obligations. All NEDs currently meet their MSR or 
are recently appointed. In FY2022, there was one participant sacrificing during the year. However no rights or shares have yet been allocated 
under the Plan. Rights and shares will be allocated in FY2023.

Directors regularly assess the risk of the Company losing high-performing key people who manage core activities or have skills that are being 
actively solicited in the market. Where appropriate, the Board may consider the selected use of deferred payment arrangements to reduce the 
risk of such critical loss. From time to time, it may be necessary to offer sign-on equity to offset or mirror unvested equity, which a prospective 
executive must forfeit to take up employment with Origin. No such arrangements were implemented for Executive KMP in FY2022.

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Annual Report 2022

4 Company performance and remuneration outcomes

This section summarises remuneration outcomes for FY2022 and provides commentary on their alignment with Company outcomes.

4.1 Five-year Company performance and remuneration outcomes

The table below summarises key financial and non-financial performance for the Company from FY2018 to FY2022, grouped and compared 
with short-term and long-term remuneration outcomes.

Five-year key performance metrics FY2018–221

FY18

FY19

FY20

FY21

FY22

Operational measures

Underlying earnings per share (EPS) (cents)2,12

Net cash from/(used in) operating and investing activities (NCOIA) ($m)

Energy Markets underlying EBITDA ($m)12

Integrated Gas underlying EBITDA (total operations) ($m)

Adjusted net debt ($m)3

Strategic Net Promoter Score (sNPS)4

Total Recordable Injury Frequency Rate (TRIFR5)

Female representation in senior roles (%)6

CEO-1

CEO-2

Senior leadership roles

Origin Engagement Score7

STI award outcomes

Percentage of maximum (%)8

Return measures

Closing share price at end of June ($)9

Dividends (cents per share)10

Annual TSR (%)

Three-year rolling TSR (CAGR % p.a.)11

Group Statutory EBIT ($m)12

Underlying ROCE12,13 (%)

LTI outcomes

LTI vesting percentage (%)

58.2

2,645

1,811

1,521

6,496

(19)

2.2

20.0

33.8

34.2

61

58.4

1,914

1,574

1,892

5,417

(9)

4.5

25.0

40.6

34.4

61

57.6

1,813

1,450

1,741

5,158

(3)

2.6

33.3

43.9

33.9

75

17.8

1,183

979

1,135

4,639

4

2.7

33.3

42.9

34.6

74

23.2

3,363

365

1,837

2,838

5

4.0

30.0

43.6

40.8

68

88.7

73.7

84.1

50.7

73.6

10.03

0

46.2

(2.6)

473

7.7

7.31

25

(26.1)

12

1,432

9.1

5.84

25

(17.7)

(8)

360

8.7

4.51

20

(19.7)

(20.6)

(1,833)

4.4

5.73

29

32.4

(0.4)

(745)

7.6

0

0

0

35.3

25.0

1 Except as noted in (2) below, FY2018 is as previously reported. It has not been restated for the presentation of certain electricity hedge premiums, which are included in 

underlying from FY2019, or for the reclassification of futures collateral balances to operating cash flows (previously in financing cash flows in prior periods). A restatement 

for these factors for FY2018 only was provided in the FY2019 Consolidated Financial Statements at Note A1 Segments and in the Statement of cash flows, for indicative 

comparison purposes only.

2 EPS is calculated on a continuing activities basis (excludes Lattice Energy for FY2018).

3 Adjusted Net Debt for FY2020 includes first recognition of lease liability ($514 million) under AASB16.

4 sNPS is an industry-recognised measure of customer advocacy.  The measures were previously presented on a final-quarter average for each year and have been restated as 

the average over the whole of the relevant financial year.

5 TRIFR is the total number of injuries resulting in lost time, restricted work duties or medical treatment per million hours worked.

6 CEO-1 represents Executives reporting directly to the CEO. In line with market practice, it includes the CEO. CEO-2 includes roles directly reporting to CEO-1. Senior 

leadership roles captures the three reporting levels below CEO and includes roles with base salaries exceeding approximately $200,000 per annum.

7 Employee engagement is measured as a score through an annual Company-wide survey conducted independently.

8 This is the total dollar value of STI awarded for Executive KMP as a percentage of their total maximum STI. The percentage of STI forfeited is this amount subtracted from 

100 per cent.

9 The opening share price for FY2018 was $6.86.

10 Dividends represent the interim plus final dividends determined for each financial year. For FY2022, this includes the final dividend determined on 18 August 2022 to be paid 

on 30 September 2022. The amounts paid within each financial year are 0c, 10c, 30c, 22.5c and 20.0c, respectively.

11 TSR calculations use the three-month VWAP share price to 30 June, reflecting the testing methodology for relative TSR ranking.

12 Following clarifying guidance from the International Financial Reporting Interpretations Committee, the Group has applied changes in accounting policies that require 

restatement of previously reported amounts. Refer to note G11 Prior year restatements, in the Consolidated Financial Statements.

13 Underlying ROCE is defined in the Glossary and Interpretation.

Remuneration Report

69

4.2 Variable remuneration outcomes

4.2.1 Assessment process

The Board has adopted governing principles to apply when considering adjustments to measures that are used for remuneration purposes. 
The starting points for setting STI scorecard targets are the relevant underlying measures from the financial accounts. Targets set at the 
beginning of the year may be subject to events materially outside the course of business and outside the control of the current management, 
in which case discretion may be required to vary targets or outcomes to reflect the intended purpose and/or actual results and achievements. 
The principles provide a structured process for the consideration of adjustments and the exercise of discretion, and a decision framework that 
seeks fairness (to both Executives and shareholders) and balance between favourable and unfavourable events.

4.2.2 Short-term performance and STI outcomes

STI awards are calculated on the basis of a balanced scorecard, with requirements set at threshold, target and stretch achievement levels. The 
CEO’s FY2022 scorecard showing measures, outcomes and results is summarised below.4

Measure, rationale and performance

Underlying EPS (cents)
Measure of earnings and profitability. Increased 28.2 per cent on prior 
year, reflecting improved performance in the Integrated Gas business, which 
outweighed a decline in the Energy Markets business

Origin NCOIA ($m)
Measure of effective cashflow generation.  Performance was 27 per cent above 
target after the removal of the impact of the sale of a 10 per cent interest 
in APLNG

Energy Markets EBITDA ($m)
Measure of operating performance of the Energy Markets 
business. Performance did not reach threshold requirements and this measure 
did not contribute to STI outcomes

Integrated Gas cost ($m)
Measure of capital and operating costs in the Integrated Gas business. Superior 
field performance and disciplined cost management has enabled the business 
to leverage the buoyant commodity market

Financial measures

Origin Scope 1 emissions reduction (CO2-e)(%)
Measure of progress against our decarbonisation strategy. Scope 1 emissions 
were reduced 22 per cent in the year, far exceeding the stretch target of 
10 per cent

Strategy development for Integrated Gas
Measures the reliable delivery of energy through the transition and progress 
on cleaner energy initiatives. Significant progress was made on key exploration 
and production prospects, portfolio re-positioning, hydrogen hub development 
and securing of strategic locations, and decarbonisation

Strategy development for Energy Markets
Measures progress in unrivalled customer solutions and accelerating 
renewables. Customer migration to the Kraken platform well advanced and 
will be completed in mid FY2023. Origin Zero established.  Excellent progress 
on the Eraring closure pathway and Eraring battery storage, acquisition of 
WINconnect and acquisitions of renewable development projects, material 
value add through Octopus relationship

Strategic priorities
 Non-financial measures

Total

Targets and outcomes

Result

Weight

Threshold

Target

Stretch

(% max)

15%

15%

15%

15%

60%

10%

12%

18%

40%

100%

365

4.4

10.4

18.3

23.2

2,496

2,646

2,896

3,363

450

525

615

2,520

2,400

2,250

2,299

20

60

100

71.7

4

6

10

22

20

60

100

63.9

20

60

100

77.3

20

60

100

78.9

20

60

100

74.6

100.0

100.0

0.0

86.9

71.7

100.0

63.9

77.3

78.9

74.6

4 The value for each of the three levels are shown along the top of the achievement bar and correspond to results of 20 per cent, 60 per cent or 100 per cent of maximum, 

respectively. The actual achievement is represented by the darker shading along the bar while the achievement value is recorded below the bar

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Annual Report 2022

The scorecard reflects financial and operating outcomes achieving 71.7 per cent of maximum accounting for 60 per cent of the STI award. In 
addition, it reflects very strong performance against the three non-financial strategic priorities defined for the year (78.9 per cent of maximum) 
accounting for the remaining 40 per cent of the STI award. The overall scorecard outcome was 74.6 per cent of maximum (124.6 per cent 
of target).

Application of the principles described in Section 4.2.1 included the following adjustments:

• The significant impact of the sale of our 10 per cent interest in APLNG was excluded from the NCOIA result and Integrated Gas 

Capital Employed.

• The impact of the WINconnect acquisition was removed from the NCOIA result and from the Energy Markets ROCE EBIT.

• The NCOIA result was adjusted for the cost of the additional investment in Octopus Energy.

• Penalties and legal costs associated with Australian Energy Regulator action, excluded from underlying financial measures, were included 

for the purposes of the relevant metrics in STI awards.

4.2.3 Executive KMP STI outcomes

Origin’s EPS and NCOIA targets, and therefore results, represent half of the financial metrics for all Executive KMP. The remaining financial 
metrics for divisional Executive General Managers are based on divisional targets. While Energy Markets EBITDA and Retail EBITDA 
contributed zero and small contributions, respectively, there has been a relative outperformance in Integrated Gas.  Accordingly, scorecard 
outcomes ranged between 69.3 to 80.4 per cent of maximum.

Executive KMP

% of target

% of maximum

% forfeited

STI award

F Calabria

L Tremaine

J Briskin

G Jarvis

A Thornton1

124.6

124.6

115.8

117.6

134.3

74.6

74.6

69.3

70.4

80.4

25.4

25.5

30.7

29.6

19.6

$’000

2,343

1,299

1,071

1,100

793

1 The STI award for A Thornton relates to the period as KMP.

4.2.4 Long-term performance and LTI outcomes

In FY2022, the Company’s share price increased 27.1 per cent, TSR by 32.4 per cent and underlying ROCE by 71.1 per cent. Longer term 
measures in the performance summary in Section 4.1 over the last five years show that dividends have been restored and stabilised; female 
representation has significantly increased across all levels of leadership; and engagement, though dipping in the challenging FY2022 year, is 
above the average and close to the top quartile of organisations in Australia and New Zealand.

Improving performance has been reflected in partial vesting of LTIP awards in the last two years, following eight years of zero 
vesting outcomes.

A partial vesting (25.0 per cent) of LTI awards granted in FY2019 occurred on 23 August 2021. One half of that grant was subject to relative 
TSR conditions and failed to vest. The other half was subject to ROCE hurdles in two equal tranches, one determined by results in the 
Integrated Gas business and the other by results across Energy Markets, over three years. Each of these two latter elements met its threshold 
vesting requirement (9.0 per cent for Energy Markets and 6.1 per cent for Integrated Gas, measured on an LTI basis), delivering 50 per cent 
in each case, a total of 25 per cent of all rights tested.

Vesting outcomes for FY2023 will be determined at the end of August 2022. Testing will include the last tranche of Options that the 
Company has granted (in August to October 2017). These Options were subject to a five-year TSR hurdle relative to a ten-up/ten-down 
market capitalisation peer group. Origin’s performance will not meet the median peer TSR performance and all of the Options will lapse. 
Testing will also include PSRs granted in August and October 2019, half of which were subject to a three-year TSR hurdle (relative to ASX 
50) and the balance to three-year ROCE hurdles. Origin’s performance will not meet the median peer TSR performance and all of these PSRs 
will lapse. The ROCE tranche is divided equally into Energy Markets and Integrated Gas hurdles. The Energy Markets tranche will not meet 
threshold vesting requirements, while the Integrated Gas tranche is likely to approach its full vesting level (9.1 per cent). The overall vesting 
outcome for FY2023 is expected to be around 16 per cent.

Remuneration Report

71

4.3 Total pay received in FY2022

In line with general market practice, a non-AASB presentation of actual pay received in FY2022 is provided below as a summary of real or ‘take 
home’ pay. AASB statutory remuneration is presented in Table 7-2.

($’000)
Executive KMP

F Calabria

L Tremaine

J Briskin

G Jarvis

A Thornton6

FR1

1,880

1,043

925

935

570

STI cash2

Short-term
equity3

Long-term
equity4

Actual total 
pay received

1,171

649

535

550

397

806

406

202

386

134

333

131

66

71

22

4,190

2,229

1,728

1,942

1,123

Share price 
appreciation 
included in total5

(986)

(443)

(221)

(200)

(119)

1 FR is cash and superannuation received during FY2022.

2 STI cash represents the cash element of the FY2022 STI award.

3 Short-term equity represents the value of previously awarded equity from short-term arrangements (including STIP and grants under the Employee Share Plan) that are vested 

or released (as relevant) during FY2022. The value is determined as the number of shares vested or released multiplied by the five-day VWAP immediately prior to the date of 

vest/release. This value is usually the same as the equity’s taxable value to the executive. The amounts shown above relate to Deferred Share Rights (DSR) vests and Restricted 

Share releases, all on 26 August 2021, arising from Deferred STI arrangements, plus GESP shares released on 5 September 2021 and Matching Share Plan allocations released 

on 22 October 2021.

4 Long-term equity represents the value of previously awarded equity from long-term arrangements (LTIP and other arrangements with deferral periods of three or more years) 

that are vested or released (as relevant) during FY2022. The value is determined in the same way as described in note 3 above. The amounts shown all relate to vesting and 

releases on 26 August 2021 (being three-year ROCE LTI awards).

5 Share price appreciation represents the increase (decrease) in share value at the time of realisation or release, relative to the value at the time the relevant equity was awarded 

and allocated.

6 Remuneration for A Thornton relates to the period as KMP.

72

Annual Report 2022

5 Governance

5.1 The role of the Remuneration, People and Culture Committee

The RPCC supports the Board by overseeing Origin’s remuneration policies and practices. It operates under a Charter (published on the 
Company’s website at originenergy.com.au). The RPCC met formally five times during the reporting period.

Including its Chairman, the RPCC has four members, all of whom are independent NEDs (see Section 1 for details). The RPCC’s Charter 
requires a minimum of three NEDs. In addition, there is a standing invitation to all Board members to attend the RPCC’s meetings. 
Management may attend RPCC meetings by invitation but a member of management will not be present when their own remuneration is 
under discussion.

The following diagram sets out the role of the RPCC and its operational relationships with the Board, management, stakeholders and 
external advisors.

5.2 Remuneration advisors

The RPCC engages external advisors from time to time to conduct benchmarking, advise on regulatory and market developments, and 
review proposals and reports. Protocols have been established for engaging and dealing with external advisors, including those defined as 
remuneration consultants for the purposes of the Corporations Act 2001. These protocols are to ensure independence and avoid conflicts 
of interest.

The protocols require that remuneration advisors are directly engaged by the RPCC and act on instruction from its Chairman. Reports must be 
delivered directly to the RPCC Chairman. The advisor is prohibited from communicating with Company management except as authorised 
by the Chairman, and even then, this is limited to the provision or validation of factual and policy data. The advisor must furnish a statement 
confirming the absence of any undue influence from management.

The RPCC generally seeks information rather than specific remuneration recommendations within the definition of the Act, and this was 
the case during FY2022. Guerdon Associates was appointed for this period; no remuneration recommendations as defined under the Act 
were provided.

In addition, the RPCC makes use of general market trend information from a variety of commercial and industry sources and has access to 
in-house remuneration professionals who provide it with guidance and analysis on request.

The recommendations that the RPCC makes to the Board are based on its own independent assessment of the advice and information 
received from these multiple sources, using its experience and having careful regard to the principles and objectives of the remuneration 
framework, Company performance, shareholder and community expectations, and good governance.

Remuneration Report

73

5.3 Remuneration governance and oversight

The Board’s oversight of executive performance and remuneration outcomes is rigorous and multi-phased. The oversight can be divided into 
the stages set out below, and it is designed to ensure that outcomes are fair to executives and to stakeholders, consistent in approach, and 
governed by documented principles.

5.3.1 Through the performance period

Throughout the STI performance year and LTI vesting periods, the Board monitors and reviews management performance against financial 
and non-financial targets, including factors affecting the original assumptions underlying the setting of targets at the beginning of the relevant 
performance periods.

Potential adjustments that may be required are considered under a set of protocols that cover materiality, symmetry of treatment for 
favourable and unfavourable events, the degree to which events are foreseeable and controllable by management, and the impact of Board 
decisions (for example, mergers and acquisitions). Any adjustments are subject to Board approval at the end of the performance period.

The outcome from this stage comprises preliminary STI outcomes and preliminary LTI vesting outcomes.

5.3.2 At the end of the financial year

At the end of each financial year the full Board conducts a formal Executive Performance Review of the CEO and each member of the ELT, 
including the preliminary remuneration outcomes. The review is a formal and holistic process which considers:

•

risk, audit, compliance and reputation matters (including whistle-blowing, discrimination, bullying or harassment complaints; and safety 
and employee relations matters);

• enterprise and business strategy contribution; and

•

leadership habits and behaviours.5

The process includes taking feedback from:

• Chair of the Health, Safety and Environment Committee;

• Chair of the Audit Committee;

•

Internal Auditor;

• General Counsel and EGM Company Secretariat, Risk and Governance; and

• Executive General Manager, People & Culture.6

As a performance review process, the output includes performance feedback and identifies specifically whether there are any matters 
that warrant the exercise of downward discretion to modify individual executives’ preliminary remuneration outcomes. In exceptional 
circumstances the Board may exercise upward discretion, within the capped opportunity level.

During this stage, the Board will also consider whether any exercises of discretion are appropriate on a collective basis, and in the overall 
context of ensuring that the outcomes represent a reasonable and fair reflection of the company’s performance from the perspective of 
all stakeholders.

The output from this stage comprises final STI outcomes and final LTI vesting decisions.

5.3.3 Beyond the performance period

Issues may emerge after final results have been notified where the Board deems that those results are no longer appropriate, or that the results 
would give rise to the receipt of an inappropriate benefit. Where such issues emerge before payment has been made or before rights have 
vested or shares have been released from trading locks, the Board may reduce or cancel the award or the vesting level, and/or extend the 
period of a trading lock under the Company’s malus provisions. The deferral period for equity (two years for STI and five years for all tranches 
of LTI) means that the exercise of malus is available for significant periods of time.

Where benefits have been paid, vested or released, the Company’s clawback provisions give the Board further powers to recover cash 
proceeds from the sale of shares and to recover cash awards. These powers may be limited by statute or regulation.

Of course, fraud, dishonesty, gross misconduct, negligence, breach of duties and other serious matters would have consequences additional 
to the remuneration impacts described above.

Downward discretions have been exercised by the Board from time to time, both to STI outcomes and to LTI allocations or vesting outcomes, 
to provide better alignment of variable pay outcomes with the broader context and overall circumstances of the Company. There have been 
no circumstances to date in which the Board has sought to apply the clawback provisions.

5.4 Change of control and capital reorganisation

On a change of control event the Board may determine that all or a specified number of unvested securities will vest or cease to be subject 
to restrictions.

On a capital reorganisation, the Board may determine the manner of adjustment of the number of unvested share rights and Options held by 
participants to minimise or eliminate any material advantage or disadvantage to the participant. If new awards are granted, they will, unless 
the Board determines otherwise, be subject to the same terms and conditions as the original awards.

5 Behaviours across the company are informed by a behaviourally anchored rating scale (BARS) methodology.
6 For the Executive General Manager, People & Culture, the feedback is from the CEO and/or the Chair of the RPCC.

74

Annual Report 2022

6 Non-executive Director fees

6.1 Remuneration policy and structure for Non-executive Directors

NED remuneration comprises fixed fees with no incentive-based payments. This ensures that NEDs can independently and objectively assess 
both Executive and Company performance.

Board and committee fees take into account market rates for similar positions at relevant Australian organisations (those of comparable 
size and complexity) and fairly reflect the time commitments and responsibilities involved. The aggregate cap for overall NED remuneration 
remains at $3.2 million p.a., as approved by shareholders in 2017.

The Origin Chairman receives a single fee that includes committee activities, while other NEDs receive a NED Base Fee and separate fees 
for their role on specific committees (other than the Nomination Committee, which is considered within the NED Base Fee). All fees include 
superannuation contributions.

The table below summarises the structure and level of NED fees. No change to the fee structure or quantum is proposed for FY2023.

Office

Board

Audit Committee

RPCC, Safety and Sustainability Committee, and Risk Committee

Nomination Committee

1 The Chairman fee is inclusive of committee fees.

Chairman

6771

57

47

nil

FY2022 and FY2023 ($’000)

Member

196

29

23.5

nil

6.2 Minimum Shareholding Requirement for Non-executive Directors

To align the interests of the Board with those of shareholders, NEDs are required to build and maintain a substantive shareholding in the 
Company (the MSR). NEDs may purchase shares directly or through the NEDSP that was approved by shareholders in 2018. The NEDSP is a 
fee sacrifice plan that allows NEDs to acquire share rights (rights to acquire fully paid ordinary shares in the Company) subject to the terms of 
the grant. The NEDSP is intended to facilitate the acquisition of shares for new Directors to meet their MSR obligation while recognising that 
opportunities for direct purchases by Directors may be limited. NEDs are expected to reach their MSR within three years of their appointment. 
During FY2022, one NED commenced salary sacrificing fees under the NEDSP. However, no rights or shares are scheduled to be allocated 
until FY2023. There were no rights or shares allocated during the reporting period under the NEDSP, as there had been no prior participants 
under the NEDSP.

The NED MSR is determined from time to time as a number of shares referenced to a nominal multiple of fees. The determination takes into 
account changes in fees and share prices over time. The nominal reference multiple is 100 per cent of the annual base NED fee for all NEDs 
except for the Chairman of the Board, where it is 200 per cent of the annual base NED fee. The current share determinations of 28,000 shares 
for NEDs and 56,000 shares for the Chairman are to be increased to 36,000 and 72,000, respectively, from August 2023.

Share rights held by NEDs under the NEDSP (FY2022: nil) will count towards the satisfaction of NED MSR obligations because they are funded 
through sacrifice of fees by the participating Director. The shares allocated on vesting of the share rights are bought on market on behalf of 
the Director and are not subject to forfeiture.

Table 7-4 (b) shows that all NEDs meet the current MSR obligation apart from recent appointee Joan Withers, who is on track to meeting 
her MSR.

Remuneration Report

75

7 Statutory tables and disclosures

Table 7-1 Executive service agreements
The main terms of service agreements for Executive KMP as at 30 June 2022 are set out in the table below.

Basis of contract

Notice period

Ongoing

• Twelve months by either party for CEO; six months for Other Executive KMP

• Shorter notice may apply by agreement

• No notice in defined circumstances1

Termination benefits for cause

Statutory entitlements only

Termination benefits for resignation

Notice as above or payment in lieu of notice that is not worked; current-year STI forfeited; unvested 
equity lapses; statutory entitlements

Termination benefits for other than resignation 
or cause

Notice worked (or payment in lieu of any portion not worked); pro-rata STI for the period worked (no 
deferral applicable); all unvested equity lapses unless held on foot in accordance with Equity Incentive 
Plan Rules2; statutory entitlements.

For redundancy (Other Executive KMP only) payment in accordance with the Company’s general 
redundancy policy of three weeks FR per year of service, with a minimum of 18 weeks and a maximum 
of 78 weeks.

Remuneration

Remuneration is reviewed annually or as required to maintain alignment with policy and benchmarks.

1 These circumstances include but are not limited to serious or persistent or wilful misconduct, breach of contract, or conduct likely to seriously injure the reputation of 

the Company.

2 For cases of death, disability, genuine retirement or other extraordinary circumstances as approved by the Board.

Table 7-2 (a) Executive KMP statutory remuneration ($’000)

Short term

Post- 
employment 
benefit

Base 
salary

Long term

Share based4

Totals

Other1

Cash
STI2

Leave
accrual3

Deferred 
STI

LTI Other

Accounting
remuneration

At risk
(%)

Executive Director

F Calabria

2022

2021

1,855

1,786

Other Executive KMP

905

873

916

877

535

—

1,023

990

—

898

J Briskin

G Jarvis

A Thornton5

L Tremaine

2022

2021

2022

2021

2022

2021

2022

2021

Former Executive KMP

M Schubert6

Executive total

2022

2021

2022

2021

24

22

24

22

24

22

16

—

24

22

—

22

51

46

14

19

25

37

60

—

44

34

—

84

1,171

712

535

434

550

341

396

—

649

488

—

0

44

122

150

15

63

65

113

—

16

(16)

—

40

658

1,694

1,091

1,385

368

484

320

453

189

436

296

464

332

365

—

—

393

625

517

440

—

—

(471)

(369)

0

0

1

2

148

261

1

—

1

7

—

0

5,497

5,164

2,433

2,145

2,510

2,388

1,675

—

2,667

2,590

—

204

5,234

5,424

112

110

194

220

3,301

1,975

386

226

1,928

3,476

2,182 2,084

151

270

14,782

12,491

1 Represents non-monetary benefits including insurance premiums and fringe benefits (such as car parking and expenses associated with travel).

2 STI cash represents one half of the STI award. STI cash is paid after the end of the financial year to which it relates but is allocated to the earning year. The balance of the STI 

award is Deferred STI.

3 Movement in leave provision over the reporting period. Negative movement indicates that leave taken during the year exceeded leave accrued during the current year.

4 Share based remuneration is that portion of the accounting value of equity granted or to be granted for the current and prior periods attributable to the reporting period. 

Where vesting of the equity is conditional on a non-market hurdle (for example ROCE, or the underpinning metrics in the LTI RSR tranche) in following reporting periods 

the accumulated expense is adjusted for the number of instruments then expected to be released or vested. In good leaver circumstances, a bring-forward of future-period 

accounting expense may occur where a cessation of employment occurs before the normal vesting date. See Note G3 for details on share-based remuneration accounting.

5 For FY2022, pro-rata period for KMP office is from 1 November 2021 to 30 June 2022.

6 For FY2021, ‘Other’ includes accommodation benefits associated with travel from home base to the Brisbane office.

Share 
based
(%)

43

48

33

36

37

44

33

—

34

41

—

0

38

36

64

62

55

57

59

58

57

—

58

60

—

0

60

52

76

Annual Report 2022

Table 7-2 (b) NEDs statutory remuneration ($’000)

Short term

Board and 
committee fees

Other1

Post-employment

Superannuation
contributions

Total
remuneration

NEDs — current

I Atlas2

M Brenner

G Lalicker

M McCormack2

B Morgan

S Perkins

N Scheinkestel3

S Sargent

J Withers2

NEDs — former

J Akehurst3

G Cairns2

T Engelhard2

NED total

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

207

59

273

267

200

191

239

112

262

278

653

529

66

—

267

268

241

151

83

244

—

217

—

84

2,491

2,400

0

0

0

0

0

0

0

0

0

1

0

2

0

—

0

1

0

0

0

1

—

0

—

1

0

6

21

6

24

20

20

20

23

11

24

22

24

22

7

—

24

22

24

16

8

22

—

10

—

7

199

178

228

65

297

287

220

211

262

123

286

301

677

553

73

—

291

291

265

167

91

267

—

227

—

92

2,690

2,584

1 Represents non-monetary benefits including insurance premiums and fringe benefits (such as car parking and expenses associated with travel).

2 For FY2021: G Cairns and T Engelhard retired on 20 October 2020; J Withers, M McCormack, and I Atlas were appointed on 21 October 2020, 18 December 2020 and 

21 February 2021, respectively.

3 For FY2022: J Akehurst retired on 20 October 2021; N Scheinkestel was appointed on 4 March 2022.

Remuneration Report

77

Table 7-3 Details of equity grants made during the reporting period
Equity grants made to KMP during the reporting period are listed below. The grants are at nil cost to the recipient and none of the instruments 
granted have an exercise price.

For Rights, exercise is automatic at vest and the expiry date is the same as the vest date. Rights that fail to meet the relevant performance 
conditions lapse effective on the test date, which may be prior to the scheduled vest date.

Number 
granted

Grant date
fair value ($)1

Exercise 
price ($)

Grant date

Vest date2 Expiry date

Executive Director

Type

F Calabria3

Performance Share Rights

Restricted Share Rights

Restricted Shares (Deferred STI)

Other Executive KMP

J Briskin

Performance Share Rights

Restricted Share Rights

Matching Rights

Restricted Shares (Deferred STI)

G Jarvis

Performance Share Rights

Restricted Share Rights

Matching Rights

Restricted Shares (Deferred STI)

A Thornton

Performance Share Rights

Restricted Share Rights

Matching Rights

Restricted Shares (Deferred STI)

L Tremaine

Performance Share Rights

Restricted Share Rights

Matching Rights

235,989

235,989

153,000

77,331

77,331

443

93,252

79,049

79,050

443

73,170

24,794

24,792

443

22,713

87,385

87,384

443

3.58

5.14

4.44

2.46

4.44

0.47

4.44

2.46

4.44

0.47

4.44

2.46

4.44

0.47

4.44

2.46

4.44

0.47

4.44

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

20-Oct-21

26-Aug-24

26-Aug-24

20-Oct-21

2024-2026

2024-2026

6-Sep-21

21-Aug-23

—

6-Sep-21

6-Sep-21

24-Sep-21

6-Sep-21

6-Sep-21

6-Sep-21

24-Sep-21

6-Sep-21

6-Sep-21

6-Sep-21

24-Sep-21

6-Sep-21

6-Sep-21

6-Sep-21

24-Sep-21

6-Sep-21

26-Aug-24

26-Aug-24

2024-2026

2024-2026

20-Oct-23

21-Aug-23

—

—

26-Aug-24

26-Aug-24

2024-2026

2024-2026

20-Oct-23

21-Aug-23

—

—

26-Aug-24

26-Aug-24

2024-2026

2024-2026

20-Oct-23

21-Aug-23

—

—

26-Aug-24

26-Aug-24

2024-2026

2024-2026

20-Oct-23

21-Aug-23

—

—

Restricted Shares (Deferred STI)

104,872

1 For MRs, the fair value is per $1 contributed by the Executive.

2 For Restricted Shares, the vest date is the date that trading restrictions are lifted (other than restrictions arising from MSR or the Dealing in Securities Policy).

3 F Calabria was granted 235,989 PSRs and 235,989 RSRs as approved at the 2021 Annual General Meeting under ASX Listing Rule 10.14.

78

Annual Report 2022

Table 7-4 (a) Details of, and movements in, equity rights and ordinary shares of the Company Executive KMP
The following table summarises holdings and movements of rights and ordinary shares held (directly, indirectly or beneficially, including by 
related parties) over the reporting period (or KMP portion of the period), including grants, transactions and forfeits, by value and by number. 
See Table 7-5 for further details of the terms and conditions of those rights.

Type

Executive Director

F Calabria

Options

Granted/acquired2,3

Exercised4

Held at start1

Number,

Value ($)

No. vested

Number

Value ($)8

Forfeited/ 
disposed5

Held at 

end1,6,7

632,995

—

—

0

0

0

231,707

401,288

Performance Share Rights

1,075,269

235,989

844,841

78,061

78,061

333,320

361,050

872,147

Restricted Share Rights

Deferred Share Rights9

Shares3

Other Executive KMP

J Briskin

Options

183,414

235,989

1,212,983

0

0

0

45,556

—

—

45,556

45,556

194,524

763,025

276,617

679,320

86,910

—

—

—

0

—

0

—

0

0

0

419,403

0

0 1,039,642

—

86,910

Performance Share Rights

275,333

77,331

190,234

15,498

15,498

66,176

73,969

263,197

Restricted Share Rights

Matching Rights

Shares3

G Jarvis

Options

60,102

77,331

343,350

708

443

2,256

279,001

109,633

414,039

164,927

—

—

0

431

—

0

0

431

—

0

—

2,233

—

0

0

0

0

137,433

720

388,634

71,708

93,219

Performance Share Rights

291,545

79,049

194,461

16,623

16,623

70,980

79,338

274,633

Restricted Share Rights

Matching Rights

Shares3

A Thornton

Options

Performance Share Rights

Restricted Share Rights

Matching Rights

Shares3

L Tremaine

Options

61,440

79,050

350,982

708

443

2,256

277,371

92,429

324,875

34,925

87,091

43,491

528

141,567

—

0

0

192

382

81,441

—

—

—

—

1,128

—

—

0

431

0

431

0

2,233

0

0

140,490

720

—

0

0

0

0

—

0

—

0

0

0

0

—

0

—

101,000

268,800

0

0

0

0

—

0

0

0

0

0

34,925

87,091

43,491

720

15,000

126,949

81,441

0

Performance Share Rights

358,047

87,385

214,967

30,612

30,612

130,713

91,837

322,983

Restricted Share Rights

Matching Rights

Shares3

67,917

87,384

387,985

708

443

2,256

591,847

136,367

465,632

0

431

—

0

431

—

—

2,233

—

0

0

0

155,301

720

728,214

1 The number of instruments that were held at the start/end of the reporting period. For A Thornton the start is at appointment as KMP.

2 Rights to equity and shares in the Company granted to Executive KMP during the reporting period under the Equity Incentive Plan, as listed in Table 7-2. These were provided 

at no cost to the recipients.

3 Shares include purchases and transfers in, and shares received upon the vesting and exercise of share rights. It includes allotments of fully paid ordinary shares purchased by 

the Executive under the MSP (number of shares acquired: G Jarvis 1,035; J Briskin 1,035; L Tremaine: 1,035). The value of shares shown relates to the value of restricted shares 

granted (as set out in Table 7-3). No value is attributed to the balance of shares acquired, as they represent shares arising from the exercise of share rights (the value of which 

is shown in the relevant share rights line of this table) or shares purchased by the Executive under the MSP.

4 All of the rights currently listed in this table are automatically exercised upon vesting.

5 Forfeited Options and PSRs were granted on 30 August 2016, 19 October 2016, 30 August 2017, 18 October 2017, 10 September 2018 and 17 October 2018.

6 Options granted in 2017 and PSRs granted in 2019 failed to meet their test on 30 June 2022 and were subsequently lapsed, following which the remaining number of 

instruments held is as follows: Options (all Executives: 0), PSRs (F Calabria: 419,405; J Briskin: 137,435; G Jarvis: 140,487; A Thornton: 43,493; L Tremaine: 155,301).

7 There were no vested Options as at the end of the period. Other than rights and shares disclosed elsewhere in this Report, no other equity instruments, including shares in 

the Company, were granted to KMP during the period.

8 After vesting and after payment of any exercise price. The value of rights exercised is calculated as the closing market price of the Company’s shares on the ASX on the date 

of exercise, after deducting any exercise price. The exercise price for all of the rights referenced in this table is nil. DSRs vesting in the period were granted on 18 October 2017 

(vested 23 August 2021).

9 Prior to FY2018, the deferred element of STI was delivered in the form of Deferred Share Rights.

Remuneration Report

79

Table 7-4 (b) Details of, and movements in, ordinary shares of the Company — NEDs

NEDs — current5

I Atlas

M Brenner

G Lalicker

M McCormack

B Morgan

S Perkins

S Sargent

N Scheinkestel

J Withers

NEDs — former

J Akehurst

Type

Shares

Shares

Shares

Shares

Shares

Shares

Shares

Shares

Shares

Shares

Held at start1

Acquired2

Disposed3

Held at end1,4

50,000

28,367

100,000

100,000

47,143

56,000

41,429

0

0

0

0

0

0

0

24,000

0

33,365

26,000

71,200

0

0

0

0

0

0

0

0

0

0

0

50,000

28,367

100,000

100,000

47,143

80,000

41,429

33,365

26,000

71,200

1 The number of instruments held at the start/end of the reporting period.

2 Purchases and transfers in.

3 Sales and transfers out.

4 Other than shares disclosed elsewhere in this Report, no other equity instruments, including shares in the Company, were granted to KMP during the period.

5 NEDs are not issued shares under any incentive or equity plans. Acquisitions include purchases of shares on market, or pursuant to the Company’s dividend reinvestment plan 

or the August 2015 Entitlement Offer.

80

Annual Report 2022

Table 7-5 Summary of share rights outstanding
The table below lists all the share rights outstanding at 30 June 2022 that have been granted to current or former employees (including 
Executive Directors and Executive KMP) under equity-based incentive plans. Equity-based incentives are not granted to NEDs. No terms of 
equity-settled share-based transactions have been altered or modified subsequent to grant. Share rights that failed to meet their performance 
hurdles on test dates on or before 30 June 2022 lapsed effective on that test date. Details of awards granted in prior years, including applicable 
service and performance conditions, are summarised in prior Remuneration Reports corresponding to the reporting period in which the 
awards were granted.

Granted

Legacy Options

30-Aug-17

18-Oct-17

Performance Share Rights

30-Aug-19

16-Oct-19

3-Nov-20

6-Sep-21

20-Oct-21

Restricted Share Rights

3-Nov-20

3-Nov-20

3-Nov-20

6-Sep-21

6-Sep-21

6-Sep-21

20-Oct-21

20-Oct-21

20-Oct-21

Matching Rights

25-Sep-20

24-Sep-21

Number 
outstanding1

Number
held by KMP

Exercise
price ($)

Earliest
vest date2

Last possible

expiry date3,4

22-Aug-22

22-Aug-22

821,594

401,288

1,648,867

452,742

955,692

1,039,173

235,989

322,570

322,570

322,570

351,533

351,533

351,533

78,663

78,663

78,663

285,053

113,847

215,054

401,288

471,188

452,742

391,573

268,559

235,989

130,524

130,524

130,524

89,519

89,519

89,519

78,663

78,663

78,663

2,112

768

7.37

7.37

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

22-Aug-22

22-Aug-22

22-Aug-22

22-Aug-22

21-Aug-23

26-Aug-24

26-Aug-24

21-Aug-23

26-Aug-24

25-Aug-25

26-Aug-24

25-Aug-25

24-Aug-26

26-Aug-24

25-Aug-25

24-Aug-26

21-Oct-22

20-Oct-23

1 Options and PSRs with the earliest vest date of 22 August 2022 were tested on 30 June 2022. These Options and PSRs (TSR hurdle only) did not satisfy the vesting conditions 

and will lapse on 22 August 2022, in accordance with the Plan Rules. This applies to Options granted in 2017 and PSRs granted in 2019 (TSR hurdle only, the remaining total 

balance of 2019 PSRs: 1,050,807; held by KMP: 461,965).

2 The vest date for PSRs and RSRs granted since 2018 does not include the trading restriction of approximately one to two years that applies to the shares allocated on vesting.

3 Where no expiry is given, automatic exercise applies at vesting. To the extent that rights fail to meet the relevant performance conditions, they will lapse effective on the test 

date, which may be on or before the vest date.

4 Options with the expiry date of 22 August 2022 failed their test on 30 June 2022 and as such will lapse on 22 August 2022, in accordance with the Plan Rules.

Loans to KMP

No loans have been made, guaranteed or secured, directly or indirectly, by the Company or any of its subsidiaries, at any time throughout the 
year, in relation to any KMP including to a KMP-related party.

Signed in accordance with a resolution of Directors

Scott Perkins
Chairman

Sydney, 18 August 2022

 
Lead Auditor’s Independence Declaration

81

Lead Auditor’s 
Independence Declaration

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation   Ernst & Young 200 George Street Sydney  NSW  2000 Australia GPO Box 2646 Sydney  NSW  2001  Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au  Auditor’s Independence Declaration to the Directors of Origin Energy Limited  As lead auditor for the audit of the financial report of Origin Energy Limited for the financial year ended 30 June 2022, I declare to the best of my knowledge and belief, there have been:  a) No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit   b) No contraventions of any applicable code of professional conduct in relation to the audit; and  c) No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit.  This declaration is in respect of Origin Energy Limited and the entities it controlled during the financial year.     Ernst & Young      Andrew Price Partner Sydney 18 August 2022      Financial Statements

Financial 
Statements

30 June 2022

83

G Other information

G1 Contingent liabilities

G2 Commitments

G3 Share-based payments

G4 Related party disclosures

G5 Key management personnel

G6 Notes to the statement of cash flows

G7 Auditors' remuneration

G8 Master netting or similar agreements

G9 Deed of Cross Guarantee

G10 Parent entity disclosures

G11 Prior year restatements

G12 Subsequent events

Directors’ Declaration

Independent 
Auditor’s Report

Primary statements

Income statement

C Operating assets 
and liabilities

Statement of comprehensive income

C1

Trade and other receivables

Statement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the 
financial statements

Overview
A Results for the year

A1

Segments

A2 Revenue

A3 Other income

A4 Expenses

A5 Results of equity accounted investees

A6 Earnings per share

A7 Dividends

C2 Exploration and evaluation assets

C3 Property, plant and equipment

C4 Intangible assets

C5 Trade and other payables

C6 Provisions

C7 Other financial assets and liabilities

C8 Impairment of non-current assets

D Capital, funding and 
risk management

D1 Capital management

D2 Interest-bearing liabilities

D3 Contributed equity

D4 Financial risk management

D5 Fair value of financial assets 

and liabilities

B Investment in 

E Taxation

equity accounted 
joint ventures 
and associates

B1

Interests in equity accounted joint 
ventures and associates

B2 Investment in APLNG

B3 Investment in Octopus Energy 

Holdings Limited

B4 Transactions between the Group and 

equity accounted investees

E1

Income tax expense

E2 Deferred tax

F Group structure

F1 Controlled entities

F2 Business combinations

F3

Joint arrangements and investments 
in associates

84

Income statement

for the year ended 30 June

Revenue

Other income

Expenses

Results of equity accounted investees

Interest income

Interest expense

Loss before income tax

Income tax expense

Loss for the year

Loss for the period attributable to:

Members of the parent entity

Non-controlling interests

Loss for the year

Earnings per share

Basic earnings per share

Diluted earnings per share

Annual Report 2022

Note

A2

A3

A4

A5

A3

A4

E1

2022

$m

14,461

150

(16,315)

959

61

(190)

(874)

(551)

(1,425)

(1,429)

4

(1,425)

20211

$m

12,097

43

(14,158)

185

109

(242)

(1,966)

(313)

(2,279)

(2,281)

2

(2,279)

A6

A6

(81.5) cents

(129.6) cents

(81.5) cents

(129.6) cents

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

The income statement should be read in conjunction with the notes to the financial statements.

Financial Statements

85

Statement of comprehensive income

for the year ended 30 June

Loss for the period

Other comprehensive income

Items that will not be reclassified to profit or loss, net of tax

Actuarial gain on defined benefit superannuation plan

Investment valuation changes

Items that can be reclassified to profit or loss, net of tax

Foreign currency translation reserve:

Reclassified to income statement2

Translation of foreign operations

Cash flow hedges:

Reclassified to income statement

Effective portion of change in fair value

Total other comprehensive income, net of tax

Total comprehensive income for the year

Total comprehensive income attributable to:

Members of the parent entity

Non-controlling interests

Total comprehensive income for the year

Note

2022

$m

20211

$m

(1,425)

(2,279)

E1

E1

E1

E1

E1

E1

1

3

(103)

598

(310)

2,385

2,574

1,149

1,144

5

1,149

3

(6)

-

(639)

91

356

(195)

(2,474)

(2,475)

1

(2,474)

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2 Refer to note B2 for details of a foreign currency translation reserve gain recycled to the income statement as a result of the sale of a 10 per cent interest in APLNG.

The statement of comprehensive income should be read in conjunction with the notes to the financial statements.

86

Statement of financial position

as at

Annual Report 2022

Current assets

Cash and cash equivalents

Trade and other receivables

Inventories

Derivatives

Other financial assets

Income tax receivable

Other assets

Total current assets

Non-current assets

Trade and other receivables

Derivatives

Other financial assets

Investments accounted for using the equity method

Property, plant and equipment (PP&E)

Exploration and evaluation assets

Intangible assets

Deferred tax assets

Other assets

Total non-current assets

Total assets

Current liabilities

Trade and other payables

Payables to joint ventures

Interest-bearing liabilities

Derivatives

Other financial liabilities

Provision for income tax

Employee benefits

Provisions

Total current liabilities

Non-current liabilities

Trade and other payables

Interest-bearing liabilities

Derivatives

Other financial liabilities

Deferred tax liabilities

Employee benefits

Provisions

Total non-current liabilities

Total liabilities

Net assets

Equity

Contributed equity

Reserves

Retained earnings

Total parent entity interest

Non-controlling interests

Total equity

C1

D4

C7

C1

D4

C7

A5

C3

C2

C4

E2

C5

D2

D4

C7

C6

D2

D4

C7

E2

C6

D3

30 June
2022

30 June
20211

Note

$m

$m

1 July
20201

$m

1,240

1,959

164

630

479

89

105

472

2,298

113

769

503

7

121

4,283

4,666

14

366

1,465

6,939

3,291

245

4,658

-

47

17,025

21,308

2,407

169

2,004

741

344

-

231

43

18

675

2,225

7,360

4,331

190

5,373

462

40

20,674

25,340

1,934

202

1,401

466

237

-

234

163

620

3,416

182

3,174

860

-

90

8,342

-

3,075

243

6,245

3,255

286

2,523

-

51

15,678

24,020

3,485

131

316

1,590

727

59

242

378

6,928

5,939

4,637

-

3,074

1,744

-

1,359

37

856

7,070

13,998

10,022

6,877

3,109

11

9,997

25

10,022

-

3,224

1,395

15

5

36

1,219

5,894

11,833

9,475

7,138

525

1,792

9,455

20

9,475

193

5,451

1,343

16

-

33

1,313

8,349

12,986

12,354

7,145

716

4,472

12,333

21

12,354

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

The statement of financial position should be read in conjunction with the notes to the financial statements.

Financial Statements

Statement of changes in equity

for the year ended 30 June

Contributed
equity

Share-based
payments
reserve

Foreign 
currency
translation
reserve

Hedge
reserve

Fair
value
reserve

Retained
earnings

Non-
controlling
interests

$m

Balance as at 30 June 
2021 restated

Prior year restatements1

Balance as at 1 July 
2021 restated

Profit/(loss)

Other 
comprehensive income

Total comprehensive 
income for the year

Dividends provided for 
or paid

On-market share buy-back 
(refer to note D3)

Movement in contributed 
equity (refer to note D3)

Share-based payments

Total transactions with 
owners recorded directly 
in equity

Balance as at 30 June 2022

Balance as at 30 June 2020

Prior year restatements1

Balance as at 1 July 
2020 restated

Profit/(loss)

Other 
comprehensive income

Total comprehensive 
income for the year

Dividends provided for 
or paid

Movement in contributed 
equity (refer to note D3)

Share-based payments

Total transactions with 
owners recorded directly 
in equity

Balance as at 30 June 
2021 restated

7,138

-

7,138

-

-

-

-

(250)

(11)

-

(261)

6,877

7,145

-

7,145

-

-

-

-

(7)

-

(7)

226

-

226

-

-

-

-

-

-

11

11

237

223

-

223

-

-

-

-

-

3

3

222

-

222

-

494

72

-

72

-

2,075

494

2,075

-

-

-

-

-

-

-

-

-

-

716

2,147

860

-

860

-

(638)

(638)

-

-

-

-

(375)

-

(375)

-

447

447

-

-

-

-

7,138

226

222

72

5

-

5

-

4

4

-

-

-

-

-

9

8

-

8

-

(3)

(3)

-

-

-

-

5

1,795

(3)

1,792

(1,429)

-

(1,429)

(352)

-

-

-

(352)

11

4,819

(347)

4,472

(2,281)

-

(2,281)

(396)

-

-

(396)

1,795

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

The statement of changes in equity should be read in conjunction with the notes to the financial statements.

87

Total
equity

9,478

(3)

9,475

(1,425)

2,574

1,149

(352)

(250)

(11)

11

(602)

20

-

20

4

1

5

-

-

-

-

-

25

10,022

21

-

21

2

(1)

1

(2)

-

-

(2)

20

12,701

(347)

12,354

(2,279)

(195)

(2,474)

(398)

(7)

3

(402)

9,478

88

Statement of cash flows

for the year ended 30 June

Annual Report 2022

Cash flows from operating activities

Receipts from customers

Payments to suppliers and employees

Cash generated from operations

Income taxes (paid)/received, net of refunds received

Net cash from operating activities

Cash flows from investing activities

Acquisition of PP&E

Acquisition of exploration and evaluation assets

Acquisition of other assets

Acquisition of Octopus Energy

Acquisition of other investments

Interest received from other parties

Net proceeds from sale of non-current assets

Australia Pacific LNG (APLNG) investing cash flows

Divestment of ten per cent share in APLNG1

Receipt of Mandatorily Redeemable Cumulative Preference Shares (MRCPS) interest

Receipt of unfranked dividends

Proceeds from APLNG buy-back of MRCPS

Net cash from investing activities

Cash flows from financing activities

Proceeds from borrowings

Repayment of borrowings

Joint venture operator cash call movements

Settlement of foreign currency contracts

Australian Energy Market Operator (AEMO) cash deposits

Interest paid2

Repayment of lease principal

Dividends paid to shareholders of Origin Energy Ltd, net of Dividend Reinvestment Plan (DRP)

Dividends paid to non-controlling interests

Repayment of Debt Service Reserve Account (DSRA) loan to equity accounted investees

Buy back of shares on-market

Purchase of shares on-market (treasury shares)

Net cash used in financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Effect of exchange rate changes on cash

Cash and cash equivalents at the end of the year

Note

G6

D3

D3

2022

$m

14,663

(14,105)

558

(27)

531

(162)

(65)

(109)

(268)

(124)

2

6

1,957

50

433

1,112

2,832

2,896

(4,752)

(70)

(46)

(290)

(191)

(73)

(313)

(1)

(51)

(250)

(75)

(3,216)

147

472

1

620

2021

$m

12,954

(12,021)

933

31

964

(124)

(47)

(168)

-

(161)

3

7

-

110

-

599

219

-

(1,042)

(90)

(65)

-

(234)

(76)

(341)

(2)

(3)

-

(96)

(1,949)

(766)

1,240

(2)

472

1 Sales proceeds of $1,998 million offset by ($41) million relating to hedging and other transaction related costs.

2 Includes $17 million (2021: $17 million) of interest payments on leases.

The statement of cash flows should be read in conjunction with the notes to the financial statements.

Financial Statements

89

Overview

Origin Energy Limited (the Company) is a 
for-profit company domiciled in Australia. 
The address of the Company’s registered 
office is Level 32, Tower 1, 100 Barangaroo 
Avenue, Barangaroo NSW 2000. The 
nature of the operations and principal 
activities of the Company and its controlled 
entities (the Group or Origin) are described 
in the segment information in note A1.

On 18 August 2022, the Directors resolved 
to authorise the issue of these consolidated 
general purpose financial statements for the 
year ended 30 June 2022.

Basis of preparation

The financial statements have 
been prepared:

•

in accordance with the requirements 
of the Corporations Act 2001 (Cth), 
Australian Accounting Standards and 
other authoritative pronouncements of 
the Australian Accounting Standards 
Board (AASB), and International 
Financial Reporting Standards (IFRS) as 
issued by the International Accounting 
Standards Board;

• on a historical cost basis, except for 
derivatives and other financial assets 
and liabilities that are measured at fair 
value; and

• on a going concern basis.

The financial statements:

• are presented in Australian dollars;

• are rounded to the nearest million 
dollars, unless otherwise stated, 
in accordance with Australian 
Securities and Investments Commission 
(ASIC) Corporations (Rounding in 
Financial/Directors' Reports) Instrument 
2016/191; and

• do not early adopt any Accounting 

Standards and Interpretations that have 
been issued or amended but are not 
yet effective.

Changes in accounting policies

Following clarifying guidance from 
the International Financial Reporting 
Interpretations Committee (IFRIC), the 
Group has applied changes in accounting 
policies that require restatement of 
previously reported amounts. The nature 
and effect of each new amendment on the 
Group’s consolidated financial report are 
described below.

IFRIC agenda decision - Configuration 

or Customisation Costs in a 

Cloud Computing Arrangement 

-SaaS restatement

In April 2021, the IFRS Interpretations 
Committee (IFRIC) published an 

agenda decision for configuration and 
customisation costs incurred related 
to a Software as a Service (SaaS) 
arrangement. Consequently, the Group 
has changed its accounting policy in 
relation to configuration and customisation 
costs incurred in implementing SaaS 
arrangements. The nature and effect of the 
changes as a result of changing this policy is 
described below.

SaaS arrangements are arrangements in 
which the Group does not currently 
control the underlying software used in 
the arrangement.

Where costs incurred to configure or 
customise SaaS arrangements result in the 
creation of a resource which is identifiable, 
and where the company has the power 
to obtain the future economic benefits 
flowing from the underlying resource and 
to restrict the access of others to those 
benefits, such costs are recognised as 
a separate intangible software asset and 
amortised over the useful life of the software 
on a straight-line basis. The amortisation 
is reviewed at least at the end of each 
reporting period and any changes are 
treated as changes in accounting estimates.

Where costs incurred to configure or 
customise do not result in the recognition 
of an intangible software asset, then those 
costs that provide the Group with a distinct 
service (in addition to the SaaS access) 
are now recognised as expenses when the 
supplier provides the services. When such 
costs incurred do not provide a distinct 
service, the costs are now recognised as 
expenses over the duration of the SaaS 
contract. Previously, some costs had been 
capitalised and amortised over its useful life.

IFRIC agenda decision - Economic 

Benefits from Use of a Windfarm (IFRS 

16 Leases) -PPAs restatement

In December 2021, IFRIC published a 
final agenda decision addressing whether 
an agreement for the use of a windfarm 
provides the right to obtain substantially 
all the economic benefits to qualify as 
a lease. It was determined that such an 
agreement conveyed neither the right nor 
the obligation for the retailer to obtain 
any of the electricity produced by the 
windfarm, and as such does not contain 
a lease. Following the IFRIC clarification, 
the Group has changed its accounting 
policy in relation to the treatment of some 
renewable power purchase agreements 
(PPAs) previously recognised as leases. As 
a result of applying the above guidance 
to the Group’s renewable PPAs, certain 
agreements have been retrospectively 
recognised as electricity derivatives.

Impact on financial statements

In accordance with Australian Accounting 
Standards, the changes in accounting 
policies have been adopted retrospectively 
and prior periods comparatives have been 
restated. Restated amounts are detailed in 
note G11.

Use of judgements and estimates

Preparing the financial statements in 
conformity with Australian Accounting 
Standards requires management to make 
judgements and apply estimates and 
assumptions that affect the reported 
amounts of assets, liabilities, income and 
expenses. The estimates and associated 
assumptions, which are based on 
historical experience and various other 
factors believed to be reasonable under 
the circumstances, form the basis of 
judgements about carrying values of 
assets and liabilities that are not readily 
apparent from other sources. Actual 
results may differ from these estimates. 
Throughout the notes to the financial 
statements, further information is provided 
about key management judgements and 
estimates that we consider material to the 
financial statements.

The Group's operating 
environment and COVID-19

In addition to the COVID-19 pandemic; 
the Group's operating environment has 
experienced very challenging energy 
market conditions, with high prices and 
periods of supply constraints. This is most 
evident with the Ukraine war and the move 
by many countries away from importing 
energy from Russia. This is driving higher 
global energy prices and causing countries 
to place greater national importance on 
energy security.

These factors have had wider impacts 
on consumers, businesses and the 
overall economy. The Group entered 
the 2022 financial year in a financially 
resilient position with significantly reduced 
upstream costs at APLNG, and materially 
reduced debt. This has enabled the Group 
to respond to the above factors with a 
focus on safely maintaining energy supply 
and supporting customers who have been 
financially affected.

AEMO market suspension

During the year, Origin has experienced 
unprecedented energy market conditions 
with extremely high and volatile electricity 
prices, driven by generation supply 
constraints in the National Electricity 
Market (NEM), high coal and gas 
fuel costs and wet weather impacted 
renewable energy generation. These 
conditions culminated with periods of 
administered wholesale electricity pricing 

90

Annual Report 2022

and a temporary electricity spot market 
suspension in June 2022.

The economic impacts of the changes in 
the Group's operating environment due to 
market conditions and COVID-19 impacts 
have implications for various line items in 
the financial statements.

Strategy and climate change risks

Managing the transition to a low-carbon 
economy is a strategic priority. With an 
aim to achieve net-zero emissions by 2050, 
the Group is committed to helping lead 
the transition to a low-carbon future by 
progressively decarbonising its business.

The Group has identified certain key 
physical and transition risks relating to 
climate change. These include changes 
in market supply and demand for energy 
and fossil fuels, government policy and 
regulation in relation to climate change 
and other technological advancements 
that might occur as the decarbonisation 
transition unfolds.

The Group continues to monitor climate-
related legislation and policies that 
impact the financial report and will 
incorporate any required changes as 
they arise. We recognise that there is 
significant uncertainty around the pace of 
decarbonisation across the global economy 
and future changes to the Group’s climate 
change strategy or realisation of global 
decarbonisation ambitions quicker or more 
slowly than currently anticipated may 
impact some of the Group’s significant 
judgements and key estimates.

In preparing the financial report, the key 
judgements and estimates consider the 
range of economic conditions that are 
forecast to exist over the remaining useful 
lives of assets, including expectations about 
future operations, the current outlook for 
commodity prices, discount rates, capital 
expenditure requirements and market 
supply and demand profiles. Climate 
change will impact those areas of the 
financial statements that are subject to 
estimation uncertainties in the medium to 
long term and can also introduce more 
volatility in assets and liabilities carried at 
fair value.

The Group’s current strategy to manage 
the risks associated with climate change is 
contemplated in the significant judgements 
and estimates in the following notes to the 
financial statements:

• B2 - Investment in APLNG

• C2 - Exploration assets

• C3 - Property, plant and equipment

• C4 - Intangible assets

• C6 - Provisions - restoration

• C8 - Impairment of non-current assets

In February 2022, the Group announced 
plans to accelerate the exit from coal-fired 
power generation, bringing forward the 
closure of the Eraring Power Station by 
up to seven years to as early as 2025, 
with timing to be determined closer to 
2025. This announcement will reduce the 
exposure of the financial statements to 
climate change risks in future years.

The recoverable amount estimates used 
in the impairment assessment for the 
Energy Markets Generation CGU considers 
climate change risk through the adjustment 
of cashflows associated with the early 
closure of Eraring in 2025. In line with 
this, the useful life of the Eraring Power 
Station has been adjusted to accelerate 
the depreciation expense in future years 
reflecting the earlier closure date. Refer to 
note C3.

Similarly, the timing of restoration activities 
and associated cashflows for the Eraring 
site remediation work have been brought 
forward and are reflected in the provision 
balance at 30 June 2022. Refer to note C6.

Paris Agreement and net zero emissions 

by 2050

The Group acknowledges that there are 
a range of possible energy transition 
scenarios that are aligned with the goals 
of the Paris Agreement. One such scenario 
is the International Energy Agency (IEA) 
Net Zero Emissions (NZE) scenario which 
reflects a world where there is significantly 
strengthened government and climate 
policy in order to limit warming to 1.5°C.

At a domestic level, the Australian Energy 
Market Operator (AEMO) produces various 
climate scenarios for the gas and electricity 
sector such as the “strong electrification” 
scenario which is derived from the IEA NZE 
scenario and has also been designed to 
reflect a world where warming is limited 
to 1.5°C.

The Group considers these scenarios when 
testing the resilience of the portfolio for 
the impact of climate change. At this 
time, the Group does not utilise the key 
assumptions in these scenarios to derive the 
critical accounting estimates in the financial 
statements, as these are not viewed as the 
most likely outcome given the uncertainty 
around the pace of decarbonisation across 
the global economy. The key estimates in 
the financial statements are determined 
using the Group’s base case assumptions 
which are informed by an assessment of the 
current market outlook.

Although all potential financial reporting 
consequences under the scenarios above 
are impracticable to fully assess, the 
long-term commodity price outlook 
under the above 1.5°C scenarios would 
result in the following impact to the 
financial statements:

Energy Markets

For Energy Markets, commodity prices 
under a 1.5°C scenario are net favourable 
compared to the price outlook in the current 
base case assumptions, benefiting existing 
assets such as the peaking generation 
fleet and PPAs. Increased electrification 
of the NEM and other growth areas 
such as electric vehicle penetration and 
an increase in connected services as 
customers decarbonise their homes will 
provide further opportunities for the retail 
business. The recent announcement of the 
early closure of Eraring and the impairments 
recognised in FY2022 limit the exposure 
of the carrying value of the assets in 
the Energy Markets segment to long-term 
commodity price movements. There is 
no expected impact to the useful lives 
of the remaining assets or restoration 
and rehabilitation provisions under this 
1.5°C scenario.

Investment in APLNG

For the Group’s investment in APLNG, 
the commodity price outlook and carbon 
price assumptions under this 1.5°C scenario 
are unfavourable compared to the price 
outlooks in the current base case. A 
key input into the recoverable amount 
assessment is the long-term oil price 
assumption, with the Group’s base case 
assumption of US$60/bbl (real, 2022) 
favourable compared to the IEA NZE oil 
price assumptions of US$36 by 2030 (real, 
2022), US$30 by 2040 (real, 2022) and 
US$24 by 2050 (real, 2022).

The Group’s preliminary assessment of the 
recoverable amount using the IEA NZE 
commodity and carbon price assumptions 
indicates that there is still significant value 
in the investment in APLNG despite the 
sharp price reductions. It is noted that 
the impact of applying these prices alone 
would result in an impairment of the 
investment at 30 June 2022, however it 
is currently impracticable to fully assess 
the potential impact under such a pricing 
environment as the Group would take steps 
to mitigate any adverse cashflow impact 
by adjusting its future operational and 
investment decisions.

There are inherent limitations with scenario 
analysis, and it is difficult to predict which, 
if any, of the scenarios might eventuate. 
Scenarios do not constitute definitive 
outcomes or probabilities, and scenario 
analysis relies on assumptions that may or 
may not be, or prove to be, correct and may 
or may not eventuate. Scenarios may also 
be impacted by additional factors to the 
assumptions disclosed.

Financial Statements

91

Items excluded from the calculation of 
underlying profit are reported to the 
Managing Director as not representing the 
underlying performance of the business 
and thus are excluded from underlying 
profit or underlying EBITDA. These items 
are determined after consideration of the 
nature of the item, the significance of the 
amount and the consistency in treatment 
from period to period.

The nature of items excluded from 
underlying profit and underlying 
EBITDA are:

• Changes in the fair value of financial 
instruments not in accounting hedge 
relationships, to remove the significant 
volatility caused by timing mismatches 
in valuing financial instruments and 
the related underlying transactions. The 
valuation changes are subsequently 
recognised in underlying earnings when 
the underlying transactions are settled;

• Realised and unrealised foreign 

exchange gains/losses on debt held 
to hedge USD-denominated investment 
in APLNG;

• Significant redundancies and other costs 
in relation to business restructuring, 
transformation or integration activities;

• Gains/losses on the sale or acquisition of 

an asset/entity;

• Transaction costs incurred in relation to 

the sale or acquisition of an entity;

•

Impairments of assets;

• Significant onerous contracts;

• Deferred tax liability recognition relating 

to the APLNG investment;

• Large-scale Generation Certificates 
(LGCs) net shortfall charge; and

• Other significant non-recurring items.

A Results for the year

This section highlights the performance of 
the Group for the year, including results by 
operating segment, income and expenses, 
results of equity accounted investees, 
earnings per share and dividends.

A1 Segments

The Group's operating segments are 
presented on a basis that is consistent 
with the information provided internally to 
the Managing Director, who is the chief 
operating decision maker. This reflects the 
way the Group's businesses are managed, 
rather than the legal structure of the Group.

The reporting segments are organised 
according to the nature of the activities 
undertaken and are detailed below.

• Energy Markets: Energy retailing and 

•

wholesaling, power generation and LPG 
operations predominantly in Australia. 
Also includes Origin's investment in 
Octopus Energy Holdings Limited 
(Octopus Energy).

Integrated Gas: Origin's investment 
in APLNG, exploration interests in 
the Beetaloo, Cooper-Eromanga and 
Canning basins and costs associated 
with growth initiatives such as hydrogen. 
It also includes overhead costs (net 
of recoveries from APLNG) and costs 
incurred in managing Origin’s exposure 
to LNG pricing risk and impacts of 
its LNG trading positions. For greater 
transparency, the investment in APLNG 
is presented separately from the residual 
component of the segment.

• Corporate: Various business 

development and support activities 
that are not allocated to operating 
segments, including corporate treasury 
and tax items.

Underlying profit and underlying EBITDA 
are non-statutory (non-IFRS) measures. 
The objective of measuring and reporting 
underlying profit and underlying EBITDA 
is to provide a more meaningful and 
consistent representation of financial 
performance by removing items that distort 
performance or are non-recurring in nature.

92

Annual Report 2022

A1 Segments (continued)

Segment result for the year ended 30 June

$m

Ref.

2022

20211

2022

2021

2022

2021

2022

20211

2022

20211

Energy Markets Share of APLNG

Other

Corporate

Consolidated

Integrated Gas

External revenue

13,636

11,931

-

-

825

166

-

-

-

-

14,461

12,097

-

EBITDA

(403)

(1,205)

2,134

1,145

(689)

(389)

(200)

113

842

(336)

Depreciation and amortisation

(424)

(513)

-

-

(24)

(30)

(52)

(39)

(1,090)

(879)

(1,757)

1,044

(921)

224

4

4

(1)

-

2

-

(449)

(541)

(1,138)

(956)

(709)

(415)

(201)

115

(745)

(1,833)

48

106

13

(190)

(551)

(4)

3

(242)

(313)

(2)

61

(190)

(551)

(4)

109

(242)

(313)

(2)

(879)

(1,757)

1,044

224

(661)

(309)

(933)

(439)

(1,429)

(2,281)

Share of ITDA of equity 
accounted investees

EBIT

Interest income2

Interest expense3

Income tax expense4

Non-controlling interests (NCI)

Statutory profit/(loss) attributable to 
members of the parent entity

Reconciliation of statutory profit/(loss) 
to segment result and underlying 
profit/(loss)

Fair value and foreign 
exchange movements

Disposals, impairments, business 
restructuring and other

Tax and NCI items excluded from 
underlying profit

(a)

1,574

(444)

(b)

(2,342)

(1,740)

-

-

-

-

-

-

(331)

(556)

(112)

187

1,131

(813)

(62)

176

(3)

4 (2,407)

(1,560)

(393)

(380)

(560)

(675)

(222)

(560)

(222)

(31)

(1,836)

(2,595)

Total significant items

(768)

(2,184)

Segment underlying profit/(loss)5

Underlying EBITDA5,6

(111)

365

427

979

1,044

224

2,134

1,145

(268)

(297)

71

(258)

(408)

407

314

(10)

(88)

(78)

2,114

2,036

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2 Interest income earned on MRCPS has been allocated to the Integrated Gas - Other segment.

3 Interest expense related to general financing is allocated to the Corporate segment.

4 Income tax expense for entities in the Origin tax consolidated group is allocated to the Corporate segment.

5 Underlying profit and underlying EBITDA are non-statutory (non-IFRS) measures.

6 Underlying EBITDA equals segment result and underlying profit/(loss) adjusted for: depreciation and amortisation; share of ITDA of equity accounted investees; interest 

income/(expense); income tax expense; and NCI.

Financial Statements

93

A1 Segments (continued)

Segment result for the year ended 30 June

$m

(a) Fair value and foreign exchange movements

Increase/(decrease) in fair value of derivatives

Net gain/(loss) from financial instruments measured at fair value

Exchange (loss)/gain on foreign-denominated debt

Fair value and foreign exchange movements

(b) Disposals, impairments, business restructuring and other

Loss on sale - Horan & Bird Energy Pty Ltd

Loss on divestment - APLNG equity accounted investment

Loss on sale - other assets

Disposals

Impairment - Energy Markets

Impairments

Restructuring costs2

Transaction costs

Transformation costs

Business restructuring

Deferred tax liability recognition - APLNG

Net capital gains tax on divestment - APLNG3

Gain on dilution of investment - Octopus Energy

Provision for legal matters

LGC net shortfall charge

Onerous contracts provision4

WINconnect other income5

Other provisions

Other

2022

20211

Gross

Tax and NCI

Gross

Tax and NCI

1,155

85

(109)

1,131

-

(113)

(1)

(114)

(2,196)

(2,196)

(51)

(5)

(27)

(83)

-

-

44

(22)

(151)

48

67

-

(14)

(347)

(26)

33

(340)

-

-

-

-

-

-

15

2

8

25

(39)

(172)

-

-

-

(14)

(20)

-

(245)

(220)

(809)

(163)

159

(813)

(13)

-

-

(13)

(1,504)

(1,504)

(3)

(2)

(20)

(25)

-

-

-

-

(198)

176

-

4

(18)

(1,560)

242

49

(47)

244

-

-

-

-

250

250

1

-

6

7

(669)

-

-

-

-

(53)

-

(1)

(723)

(466)

(222)

Total disposals, impairments, business restructuring and other

(2,407)

Total significant items

(1,276)

(560)

(2,373)

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2 The amount in the current year relates to the early closure of the Eraring Power Station. Refer to note C6.

3 Includes $394 million of capital gains tax, offset by a $222 million tax benefit pertaining to carry-forward capital losses.

4 This amount represents the non-cash movement during the year relating to the Group's onerous contracts. Future realised gains or losses will be recognised within underlying 

profit. Refer to note C6.

5 Refer to note F2 for details of the WINconnect acquisition transaction.

94

Annual Report 2022

A1 Segments (continued)

Segment assets and liabilities as at 30 June

$m

Assets

Integrated Gas

Energy Markets Share of APLNG

Other

Corporate

Consolidated

2022

20211

2022

2021

2022

2021

2022

20211

2022

20211

Segment assets

15,982

11,493

-

-

972

743

155

194

17,109

12,430

Investments accounted for using the equity 
method (refer to note A5)

Cash, funding-related derivatives and tax assets

424

407

6,392

7,315

(571)

(783)

-

1,296

Total assets

16,406

11,900

6,392

7,315

401

1,256

-

666

821

-

6,245

6,939

643

666

1,939

837 24,020 21,308

Liabilities

Segment liabilities

Financial liabilities, interest-bearing liabilities, 
funding-related derivatives and tax liabilities

Total liabilities

Net assets

(6,713)

(4,534)

(6,713)

(4,534)

-

-

-

(1,763)

(1,210)

(604)

(673)

(9,080)

(6,417)

-

(1,763)

(1,210)

(5,522)

(6,089) (13,998) (11,833)

(4,918)

(5,416)

(4,918)

(5,416)

9,693

7,366

6,392

7,315

(1,362)

46

61

(4,701)

(5,252) 10,022

9,475

4

15

766

491

Additions of non-current assets

697

415

-

-

65

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

Financial Statements

A2 Revenue

2022

$m

Sale of electricity

Sale of gas

Pool revenue

Solar and batteries

Other revenue

Total revenue

2021

$m

Sale of electricity

Sale of gas

Pool revenue

Solar and batteries1

Other revenue1

Total revenue

Retail

4,196

1,185

-

-

-

5,381

4,381

1,148

-

-

35

5,564

Business and
Wholesale

2,891

1,627

2,608

-

28

7,154

2,754

1,307

1,337

-

34

5,432

LPG

-

705

-

-

-

705

-

585

-

-

4

589

Solar and
Energy
Services

Integrated
Gas

126

114

-

107

49

396

94

108

-

111

33

346

-

825

-

-

-

825

-

166

-

-

-

95

Total

7,213

4,456

2,608

107

77

14,461

7,229

3,314

1,337

111

106

166

12,097

1 Prior period amounts for Solar and Energy Services were restated to reflect a new category for solar and batteries.

The Group's primary revenue streams relate to the sale of electricity and natural gas to retail (Residential and Small to Medium Enterprises), 
business and wholesale customers, and the sale of generated electricity into the NEM.

Key judgements and estimates

The Group recognises revenue from electricity and gas sales once the energy has been consumed by the customer. When determining 
revenue for the financial period, management estimates the volume of energy supplied since a customer's last bill. The estimation of 
unbilled consumption requires judgement and is based on various assumptions including:

• volume and timing of energy consumed by customers;

• allocation of estimated electricity and gas volumes to various pricing plans;

• discounts linked to customer payment patterns; and

•

loss factors.

Management also uses unbilled consumption volumes to accrue network expenses incurred by the Group for unread customer electricity 
and gas meters.

The calculation of unbilled revenue requires significant judgement in estimating the level of energy consumption by customers during the 
unbilled period to 30 June 2022. The Group uses a backcasting model and volume-matching process to provide a reliable estimate of 
unbilled revenue as at 30 June 2022. Refer to note C1 for the Group's consideration of the COVID-19 impact on its cash collection of trade 
receivables and unbilled revenue.

Retail contracts

Retail electricity service is generally marketed through standard service offers that provide customers with discounts on published tariff rates. 
Contracts have no fixed duration, generally require no minimum consumption, and can be terminated by the customer at any time without 
significant penalty. The supply of energy is considered a single performance obligation for which revenue is recognised upon delivery to 
customers at the offered rate. Where customers are eligible to receive additional behavioural discounts, Origin considers this to be variable 
consideration, which is estimated as part of the unbilled process.

Business and wholesale contracts

Contracts with business and wholesale customers are generally medium to long-term, higher-volume arrangements with fixed or index-linked 
energy rates that have been commercially negotiated. The nature and accounting treatment of this revenue stream is largely consistent 
with retail sales. Some business and wholesale sales arrangements also include the transfer of renewable energy certificates (RECs), which 
represent an additional performance obligation. Revenue is recognised for these contracts when Origin has the 'right to invoice' the customer 
for consideration that corresponds directly with the value of units of energy delivered to the customer.

Pool revenue relates to sales by Origin generation assets into the NEM, as well as revenue associated with gross settled PPAs. Origin has 
assessed it is acting as the principal in relation to transactions with the NEM and therefore recognises pool sales on a gross basis. Revenue 
from these sales is recognised at the spot price achieved when control of the electricity passes to the grid.

96

Annual Report 2022

A2 Revenue (continued)

Solar and energy services

Solar and batteries revenue includes the sale, installation, repairs and maintenance services of solar photovoltaic systems, and battery 
solutions, to residential and business customers. Revenue is recognised at the point in time that the system is installed, or the service provided 
is complete. Community Energy Services supplies electricity and gas within embedded network sites. Similar to Retail contracts, the supply 
of energy is considered a single performance obligation for which revenue is recognised upon delivery to the customers at the offered rate.

LPG and Integrated Gas

Revenue from the sale of LPG (from Origin's Energy Markets segment) and LNG (from Origin's Integrated Gas segment) is recognised at 
the point in time that the customer takes physical possession of the commodity. Revenue is recognised at an amount that reflects the 
consideration expected to be received.

A3 Other income

Net gain on dilution of investments (refer to note B4)

Fees and services, and other income

Other income

Interest earned from other parties1

Interest earned on APLNG MRCPS (refer to note B4)

Interest income

1

Interest income is measured using an effective interest rate method and recognised as it accrues.

A4 Expenses

Cost of sales2

Employee expenses3

Depreciation and amortisation

Impairment of non-current assets4

Net loss on divestment5

Impairment of trade receivables (net of bad debts recovered)

(Increase)/decrease in fair value of derivatives

Net (gain)/loss from financial instruments measured at fair value

Net loss on sale of assets

Net foreign exchange loss/(gain)

Onerous contracts provision6

Other7

Expenses

Interest on borrowings

Interest on lease liabilities

Unwind of discounting on long-term provisions

Interest expense

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2 Includes variable lease payments of $24 million (2021: $21 million).

3 Includes contributions to defined contribution superannuation funds of $60 million (2021: $62 million).

4 Refer to note C8.

5 Relates to the divestment of 10 per cent of Origin’s investment in APLNG. Refer to note B2.1 for further details.

6 Refer to note C6.

7 Includes low-value assets and short-term leases payments of $3 million (2021: $5 million).

2022

$m

44

106

150

13

48

61

2022

$m

13,388

690

449

2,196

113

65

(1,155)

(85)

2

128

(51)

575

2021

$m

-

43

43

3

106

109

20211

$m

10,261

643

541

1,504

-

88

809

163

11

(163)

(176)

477

16,315

14,158

169

17

4

190

218

17

7

242

Financial Statements

97

A5 Results of equity accounted investees

for the year ended 30 June

2022

$m

APLNG1,2

Total joint ventures

Octopus Energy3

Gasbot Pty Limited

Gaschem Sydney

Total associates

Total

2021

$m

APLNG1,2

Total joint ventures

Octopus Energy3,4

Gasbot Pty Limited

Gaschem Sydney

Total associates

Total

Share of EBITDA

Share of ITDA

Share of net 
profit/(loss)

2,134

2,134

(36)

(1)

-

(37)

(1,086)

(1,086)

(51)

-

(1)

(52)

2,097

(1,138)

1,145

1,145

(3)

(1)

-

(4)

1,141

(917)

(917)

(39)

-

-

(39)

(956)

1,048

1,048

(87)

(1)

(1)

(89)

959

228

228

(42)

(1)

-

(43)

185

1 APLNG's summary financial information is separately disclosed in notes B2.2, B2.3 and B2.4. 

2 Included in the Group’s share of net profit is $4 million (2021: $4 million) of MRCPS interest income, in line with the depreciation of the capitalised interest in APLNG’s result. 

Refer to note B2.2. 

3 The Group holds an 18.7 per cent interest in Octopus Energy and has significant influence over the entity. The prior year interest was 20 per cent. Refer to note B4 for details 

regarding the dilution of the Group's interest during the year. Included in the Group's share of net profit is $18 million (2021: $18 million) of depreciation, relating to the fair 

value attributed to assets at the acquisition date. Refer to note B3.

4 The prior year amounts have been restated to reflect adjustments disclosed in note G11.

as at 30 June

$m

APLNG1,2

Octopus Energy3,4

Gasbot Pty Limited

Gaschem Sydney

Total

1 APLNG's summary financial information is separately disclosed in notes B2.2, B2.3 and B2.4.

2 During the year the Group divested ten per cent of its share of APLNG. Refer to note B2.1.

3 Octopus Energy's summary financial information is separately disclosed in note B3.

4 The prior year amount has been restated to reflect adjustments disclosed in note G11.

Equity accounted investment 
carrying amount

2022

5,821

413

1

10

2021

6,532

395

1

11

6,245

6,939

98

Annual Report 2022

A6 Earnings per share

Weighted average number of shares on issue-basic2

Weighted average number of shares on issue-diluted3

Statutory profit

Earnings per share based on statutory consolidated profit

Statutory loss $m

Basic earnings per share

Diluted earnings per share

Underlying profit

Earnings per share based on underlying consolidated profit

Underlying profit $m4

Underlying basic earnings per share

Underlying diluted earnings per share

2022

20211

1,753,612,216

1,759,555,663

1,762,126,506

1,764,549,534

(1,429)

(2,281)

(81.5) cents

(129.6) cents

(81.5) cents

(129.6) cents

407

23.2 cents

23.1 cents

314

17.8 cents

17.8 cents

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2 The basic earnings per share calculation uses the weighted average number of shares on issue during the period reduced by shares bought-back and excluding treasury 

shares held.

3 The diluted earnings per share calculation uses the weighted average number of shares on issue during the period reduced by shares bought-back and excluding treasury 

shares held. It is also adjusted to reflect the number of shares that would be issued if outstanding Options, Performance Share Rights, Deferred Share Rights, Restricted Shares 

and Matching Share Rights were to be exercised (2022: 8,514,290; 2021: 4,993,871).

4 Refer to note A1 for a reconciliation of statutory profit to underlying consolidated profit.

A7 Dividends

The Directors have determined to pay a final dividend of 16.5 cents per share, partially franked to 75 per cent, on ordinary shares. The dividend 
will be paid on 30 September 2022. Dividends paid during the year ended 30 June are detailed below.

Final unfranked dividend of 7.5 cents per share, in respect of FY2021, paid 1 October 2021
(2021: 10 cents per share, in respect of FY2020, unfranked, paid 2 October 2020)

Interim unfranked dividend of 12.5 cents per share, in respect of FY2022, paid 25 March 2022
(2021: 12.5 cents per share, in respect of FY2021, unfranked, paid 26 March 2021)

Total dividends provided for or paid

Dividend franking account

2022

$m

132

220

352

2021

$m

176

220

396

Franking credits available to shareholders of Origin Energy Limited for subsequent financial years are shown below.

Australian franking credits available at 30 per cent

New Zealand franking credits available at 28 per cent (in NZD)

86

304

(7)

304

Financial Statements

99

B Investment in equity accounted joint ventures and associates

This section provides information on the Group’s equity accounted investments including financial information relating to APLNG and 
Octopus Energy.

B1 Interests in equity accounted joint ventures and associates

Joint ventures and associates

APLNG1

Octopus Energy2,3

PNG Energy Developments Limited

Gasbot Pty Limited

Gaschem Sydney

KUBU Energy Resources (Pty) Limited

Reporting date

30 June

30 April

Country 
of incorporation

Australia

United Kingdom

31 December

PNG

30 June

Australia

31 December

Germany

30 June

Botswana

Ownership interest (per cent)

2022

27.5

18.7

50.0

35.0

25.0

-

2021

37.5

20.0

50.0

35.0

25.0

50.0

1 APLNG is a separate legal entity. Operating, management and funding decisions require the unanimous support of the Foundation Shareholders, which includes the Group 

and ConocoPhillips. Accordingly, joint control exists and the Group has classified the investment in APLNG as a joint venture.

2 Octopus Energy is a separate legal entity. The Group’s investment is equity accounted as a result of the Group’s active participation on the Board and the Group’s ability to 

impact decision making, leading to the assessment that significant influence exists.

3 Refer to note B4 for details of additional equity transactions after 30 June 2022.

Of all the above joint ventures and associates, only the interests in APLNG and Octopus Energy have a material impact on the Group at 
30 June 2022.

B2 Investment in APLNG

This section provides information on financial information related to the Group's investment in the equity accounted joint venture APLNG.

B2.1 Sale of share of APLNG

Subsequent to 31 December 2021, the Foreign Investment Review Board approved ConocoPhillips application to acquire an additional 10 per 
cent in APLNG from Origin, reducing Origin's interest from 37.5% to 27.5%. All conditions precedent under the share sale agreement between 
Origin and ConocoPhillips were satisfied and completion occurred on 18 February 2022.

On 8 December 2021, Origin classified the portion of the asset to be divested as held for sale and recognised an impairment of $193 million 
to reduce the carrying value of the portion sold to its estimated fair value of $1,998 million.

At completion, this impairment was partially offset by a net gain of $80 million, outlined in the table below, resulting in the final net loss on 
divestment amounting to $113 million.

Foreign currency translation reserve1

FX hedging costs2

Other completion adjustments

Total completion adjustments

2022

$m

105

(18)

(7)

80

1 An amount of $105 million was recycled to the income statement from the foreign currency translation reserve at completion.

2 On execution of the previously announced transaction, US$285 million was hedged at a forward rate of AUD/USD 0.749. The net loss on the hedge contract on closing out 

the position amounted to $18 million.

The following amounts in notes B2.2, B2.3 and B2.4 reflect this change in ownership which was effective from 8 December 2021.

100

Annual Report 2022

B2.2 Summary APLNG income statement

for the year ended 30 June

2022

2021

$m

Operating revenue

Operating expenses

EBITDA

Depreciation and amortisation expense

Interest income

Interest expense – MRCPS

Other interest expense

Income tax expense

ITDA

Statutory result for the year

Other comprehensive income

Statutory total comprehensive income2

Underlying profit for the year3

Underlying EBITDA for the year3

Total
APLNG

9,362

(2,486)

6,876

(1,563)

9

(141)

(328)

(1,456)

(3,479)

3,397

-

3,397

3,397

6,876

Origin
interest1

2,134

(495)

3

(48)

(105)

(445)

(1,090)

1,044

-

1,044

1,044

2,134

Total
APLNG

4,595

(1,544)

3,051

(1,568)

6

(282)

(357)

(255)

(2,456)

595

-

595

595

3,051

Origin
interest1

1,145

(588)

2

(106)

(134)

(95)

(921)

224

-

224

224

1,145

1 Origin's interest is 27.5 per cent. Prior to 8 December 2021 it was 37.5 per cent.

2 Excluded from the above is $4 million (2021: $4 million) (Origin share) of MRCPS interest income that has been recognised by Origin, in line with the depreciation of the 

capitalised interest in APLNG’s result above. Refer to note B2.3. This adjustment is disclosed under the Integrated Gas - Other segment on the 'share of ITDA of equity 

accounted investees' line in note A1.

3 Underlying profit and underlying EBITDA are non-statutory (non-IFRS) measures.

Income and expense amounts are converted from USD to AUD using the average exchange rate prevailing for the relevant period.

Financial Statements

B2.3 Summary APLNG statement of financial position

100 per cent APLNG
as at 30 June
$m

Cash and cash equivalents

Assets classified as held for sale

Other assets

Current assets

Receivables from shareholders

PP&E

Exploration, evaluation and development assets

Other assets

Non-current assets

Total assets

Bank loans – secured

Liabilities classified as held for sale

Other liabilities

Current liabilities

Bank loans – secured

Payable to shareholders (MRCPS)

Other liabilities

Non-current liabilities

Total liabilities

Net assets

Group's interest of 27.5 (prior to 8 Dec 2021: 37.5) per cent of APLNG net assets

Group's impairment expense

Group's own costs

MRCPS elimination1

Investment in APLNG Pty Ltd2

101

2021

905

24

647

1,576

335

31,352

486

730

32,903

34,479

681

1

588

1,270

7,179

3,417

3,107

13,703

14,973

19,506

7,315

(650)

25

(158)

6,532

2022

1,544

-

788

2,332

312

32,083

558

142

33,095

35,427

776

-

766

1,542

7,075

-

3,569

10,644

12,186

23,241

6,392

(477)

18

(112)

5,821

1 During project construction, when the Group received interest on the MRCPS from APLNG, it recorded the interest as income after eliminating a proportion of this interest 

that related to its ownership interest in APLNG. At the same time, when APLNG paid interest to the Group on MRCPS, the amount was capitalised by APLNG. Therefore, these 

capitalised interest amounts form part of the cost of APLNG's assets and these assets have been depreciated since commencement of operations. The proportion attributable 

to the Group’s own interest (37.5 per cent prior to 8 December 2021 and 27.5 per cent thereafter) is eliminated through the equity accounted investment balance.

2 Includes a movement of $631 million in foreign exchange that has been recognised in the foreign currency translation reserve. This represents the net amount after $105 million 

was recycled to the income statement on divestment. Also included is a movement of A$433 million (US$303 million) relating to unfranked dividends received from APLNG.

Reporting date balances are converted from USD to AUD using an end-of-period exchange rate of 0.6891 (2021: 0.7516).

Key judgements and estimates

The carrying amount of the Group's equity accounted investment in APLNG is reviewed at each reporting date to determine whether there 
is any indication of impairment or reversal of impairment. Where an indicator of impairment exists, a formal estimate of the recoverable 
amount is made. The Group’s assessment of the recoverable amount uses a discounted cash flow methodology and considers a range of 
macroeconomic and project assumptions, including oil and LNG price, AUD/USD exchange rates, discount rates and costs over the asset's 
life. No impairment loss or reversal of impairment was recognised during the year.

Climate change is a material risk that can affect the Group’s operations through current and future climate-related legislation and policies 
and climate related scenarios. Future climate related conditions, legislation and policies may have an impact on future commodity prices, 
foreign exchange rates, discount rates, inflation, global market supply and demand conditions and whether reserve quantities are capable 
of economic extraction.

102

Annual Report 2022

B2.4 Summary APLNG statement of cash flows

100 per cent APLNG
for the year ended 30 June
$m

Cash flow from operating activities

Receipts from customers

Payments to suppliers and employees

Net cash from operating activities

Cash flows from investing activities

Loan repaid by Origin

Acquisition of PP&E

Acquisition of exploration and development assets

Proceeds from sale of assets

Other investing activities

Net cash used in investing activities

Cash flows from financing activities

Payments relating to other financing activities

Repayment of lease principal

Payment of interest on lease liabilities

Repayment of borrowings

Payments of transaction and interest costs relating to borrowings

Payments for buy-back of MRCPS

Payments of interest on MRCPS

Payments of ordinary dividends

Net cash used in financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Effect of exchange rate changes on cash

Cash and cash equivalents at the end of the year

2022

2021

9,529

(2,459)

7,070

51

(393)

(22)

68

7

(289)

(22)

(55)

(15)

(694)

(233)

(3,544)

(145)

(1,573)

(6,281)

500

905

139

1,544

4,808

(1,494)

3,314

3

(431)

(28)

-

8

(448)

(48)

(45)

(19)

(672)

(263)

(1,598)

(293)

-

(2,938)

(72)

1,072

(95)

905

Cash flow amounts are converted from USD to AUD using the exchange rate that approximates the actual rate on the date of the cash flows.

Financial Statements

103

B3 Investment in Octopus Energy Holdings Limited

Octopus Energy is an energy retailer and technology company incorporated in the United Kingdom and is not publicly listed. During the year 
the Group's ownership was reduced from 20 per cent to 18.7 per cent following additional equity transactions undertaken by Octopus Energy. 
Refer to note B4 for further details. 

The following table summarises the financial information of Octopus Energy, as included in its financial statements, adjusted for differences 
in accounting policies. The table also reconciles the summarised financial information to the carrying amount of the Group's interest in 
Octopus Energy.

Summary Octopus Energy income statement
for the year ended 30 June
$m

Operating revenue

Statutory and underlying result for the year

Other comprehensive income

Statutory total comprehensive income3

2022

Total
Octopus
Energy

8,562

(345)

-

(345)

Origin
interest2

(69)

-

(69)

20211

Total
Octopus
Energy

3,907

(121)

-

(121)

Origin
interest2

(24)

-

(24)

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2 Origin's interest is 18.7 per cent. Prior to 1 December 2021 it was 20 per cent. Refer to note B4.

3 $18 million (2021: $18 million) (Origin share) of amortisation relating to the fair value attributed to assets at the acquisition date is not included above as it is recognised 

by Origin.

Income statement amounts are converted from GBP to AUD using the average rate prevailing for the relevant period.

Summary Octopus Energy statement of financial position
as at 30 June
$m

Current assets2

Non-current assets

Current liabilities3

Non-current liabilities3

Net assets

Group's interest of 18.7 per cent (prior to 1 Dec 2021: 20 per cent) of 
Octopus Energy net assets

Goodwill and fair value adjustments

Group's own costs

Group's carrying amount of the investment in Octopus Energy

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2 Current assets include cash and cash equivalents of $800 million (2021: $233 million).

2022

2,961

570

(2,867)

(11)

653

122

285

6

413

20211

1,317

331

(1,372)

-

276

55

334

6

395

3 Includes current financial liabilities and non-current financial liabilities of $1,732 million (2021: $703 million) and $11 million (2021: $nil) respectively.

Reporting date balances are converted from GBP to AUD using an end-of-period exchange rate of 0.5665 (2021: 0.5428).

The associate has no contingent liabilities or capital commitments as at 30 June 2022.

104

Annual Report 2022

B4 Transactions between the Group and equity accounted investees

APLNG

Service transactions
The Group provides services to APLNG including corporate services, upstream operating services related to the development and operation 
of APLNG's natural gas assets, and marketing services relating to coal seam gas (CSG). The Group incurs costs in providing these services and 
charges APLNG for them in accordance with the terms of the contracts governing those services.

Commodity transactions
Separately, the Group has entered agreements to purchase gas from APLNG (2022: $401 million; 2021: $354 million) and sell gas to APLNG 
(2022: $17 million; 2021: $7 million). At 30 June 2022, the Group's outstanding payable balance for purchases from APLNG was $25 million 
(2021: $55 million) and outstanding receivable balance for sales to APLNG was $7 million (2021: $7 million).

Funding transactions
The Group recorded cash received of A$1,162 million (2021: $709 million) and reflected a reduction in the MRCPS non-current financial asset 
during the financial year. The related MRCPS dividend of A$50 million was recognised as interest income.

As at 30 June 2022, the APLNG MRCPS were fully bought back and APLNG have commenced distributions via unfranked dividends of which 
$433 million were received during the year.

During the year, Origin repaid $51 million (2021: $3 million) of the loan from APLNG under the APLNG project finance DSRA requirements.

Octopus Energy

Initial investment - deferred consideration and BOT milestone payments

On 1 May 2020, the Group announced the acquisition of a 20 per cent equity stake in Octopus Energy for a total cash consideration of 
£215 million (A$412 million), of which £65 million was paid prior to 30 June 2020 and £150 million was deferred over two financial years. The 
Group has also entered into a licensing agreement for a total cash consideration of £25 million, of which £5 million was paid prior to 30 June 
2020 and £20 million was deferred over two financial years. During the year, the Group paid £100 million (A$189 million) to Octopus Energy 
in respect of the remaining deferred consideration payable under the equity purchase agreement. A further £15 million (A$28 million) was 
also paid to Octopus Energy during the year, representing £10 million of the remaining deferred consideration payable under the licensing 
agreement and an additional £5 million which became payable on achievement of certain milestones.

Additional equity transactions

On 27 September 2021, the Group committed an additional investment of £38 million (~A$72 million) to maintain its 20 per cent equity 
interest, following the announcement of an investment into Octopus Energy by a fund managed by Generation Investment Management 
(GIM) for approximately a seven per cent interest in Octopus Energy. This amount was paid in October 2021 and was recognised as an increase 
in the carrying amount of the Group's equity investment in Octopus Energy.

In December 2021, GIM obtained a further three per cent interest in Octopus Energy and Octopus Energy announced that the CPP 
Investment Board (CPPIB) agreed to acquire a six per cent stake in Octopus Energy for £211 million with completion of the CPPIB transaction 
occurring in two tranches. The first CPPIB tranche was completed in December 2021.

The GIM and CPPIB transactions in December 2021 resulted in a dilution of the Group’s ownership in Octopus Energy to 18.7 per cent at 
31 December 2021 and the Group has recognised a gain on dilution of $44 million in the current year.

In April 2022, £4.5 million ($8 million) was paid to Octopus Energy in respect of our equity investment. The amount represents a tranche 2 
milestone payment under the previous announced transaction between Tokyo Gas and Octopus and was required to maintain the Group’s 
18.7 per cent interest.

On 26 July 2022 Origin announced an additional investment of £94 million (approximately A$163 million) to restore its 20 per cent 
equity interest.

Financial guarantee

The Group has provided a financial guarantee to Octopus Energy’s financiers and during the year, $9 million (2021: $8 million) has been 
recognised within other income in respect of the financial guarantee income. The current financial guarantee expires in March 2023.

Financial Statements

105

C Operating assets and liabilities

This section provides information on the assets used to generate the Group's trading performance and the liabilities incurred as a result.

C1 Trade and other receivables

The following balances are amounts due from the Group's customers and other parties.

Current

Trade receivables net of allowance for impairment

Unbilled revenue net of allowance for impairment

Other receivables

Total current

Non-current

Trade receivables

Other receivables

Total non-current

2022

$m

769

2,107

540

3,416

-

-

-

2021

$m

602

1,444

252

2,298

9

5

14

Trade and other receivables are initially recorded at the amount billed to customers or other counterparties. Unbilled receivables represent 
estimated gas and electricity supplied to customers since their previous bill was issued. The carrying value of all receivables, including unbilled 
revenue, reflects the amount anticipated to be collected.

Key judgements and estimates

Recoverability of trade receivables: Judgement is required in determining the level of provisioning for customer debts. Impairment 
allowances take into account the age of the debt, historic collection trends and expectations about future economic conditions.

Unbilled revenue: Unbilled gas and electricity revenue is not collectable until customers' meters are read and invoices issued. Refer to note 
A2 for judgement applied in determining the amount of unbilled energy revenue to recognise.

Credit risk and collectability
The Group minimises the concentration of credit risk by undertaking transactions with a large number of customers from across a broad range 
of industries. Credit approval processes are in place for large customers and all customers are required to pay in accordance with agreed 
payment terms. Depending on the customer segment, settlement terms are generally 14 to 30 days from the date of the invoice. For some 
debtors, the Group may also obtain security in the form of deposits, guarantees, deeds of undertaking or letters of credit, which can be called 
upon if the counterparty defaults.

Debtor collectability is assessed on an ongoing basis and any resulting impairment losses are recognised in the income statement. The Group 
applies the simplified approach to providing for trade receivable and unbilled revenue impairment, which requires the expected lifetime credit 
losses to be recognised when the receivable is initially recognised. To measure expected lifetime credit losses, trade receivables and unbilled 
revenue balances have been grouped based on shared credit risk characteristics and ageing profiles. A debtor balance is written off when 
recovery is no longer assessed to be possible.

With the emergence of COVID-19, the government introduced lockdowns and other restrictions to combat the spread of the virus, which 
has had a wide-ranging impact on businesses and individuals, with job losses and business shutdowns in certain industries. This has placed 
increased pressure on businesses' ability to absorb these impacts, and on consumer budgets. Collectively, this impacts the Group's debt 
collection performance and any expected credit losses. At the date of this report, the Group has not experienced a significant impact on its 
debt collection as a result of COVID-19.

Despite this, there remains future credit risk associated with trade receivable amounts due to the unprecedented nature of this event, such 
that historical performance cannot be used in isolation as an indicator of the future. The impacts seen in other countries are not comparable 
due to different consumer patterns, demographics and responses to COVID-19, including the nature and quantum of government stimulus.

106

Annual Report 2022

C1 Trade and other receivables (continued)

The Group has assessed its provision for bad and doubtful debts in accordance with AASB 9 Financial Instruments considering:

• Current collection performance, including the COVID-19 period when lockdown restrictions and government stimulus measures were in 

place, and expected credit default frequencies;

• Regulatory and economic outlook, including forecast unemployment rates and the timing and quantum of government stimulus packages 

and other relief measures provided by banks and landlords; and

• Risk profile of customers and industry-specific risk assessments based on actual and forecasted volumes as a measure for credit risk.

These considerations require significant judgement. The Group models the expected credit loss by customer type and industry group. Where 
possible, publicly available information, such as expected default rates, has been applied. For residential customers, a higher allowance for 
impairment is included for those with significantly aged receivables.

As at 30 June 2022, the allowance for impairment in respect of trade receivables and unbilled revenue is $186 million (2021: $186 million).

The average age of trade receivables is 18 days (2021: 19 days). Other receivables are neither past due nor impaired, and relate principally to 
generation and hedge contract receivables. The ageing of trade receivables and unbilled revenue at the reporting date is detailed below.

$m

Unbilled revenue

Not yet due

Less than 30 days

31-60 days past due

61-90 days past due

Greater than 91 days

Total

2022

2021

Gross

2,120

539

86

49

30

238

3,062

Impairment 
allowance

(13)

(8)

(5)

(9)

(8)

(143)

(186)

Gross

1,465

380

105

45

30

207

2,232

The movement in the allowance for impairment in respect of trade receivables and unbilled revenue during the year is shown below.

Balance as at 1 July

Impairment losses recognised

Amounts written off

Balance as at 30 June

186

65

(65)

186

Impairment 
allowance

(21)

(8)

(7)

(9)

(9)

(132)

(186)

162

88

(64)

186

Financial Statements

C2 Exploration and evaluation assets

Balance as at 1 July

Additions

Exploration write-off

Balance as at 30 June1

107

2021

$m

190

55

-

245

2022

$m

245

65

(24)

286

1 The closing balance primarily relates to the Group’s 77.5 per cent share in the Beetaloo Basin joint venture with Falcon Oil & Gas (Beetaloo asset) and the Group's interests in 

several permits in the Canning Basin with Buru Energy and Rey Resources.

The Group holds a number of exploration permits that are grouped into areas of interest according to geographical and geological attributes. 
Expenditure incurred in each area of interest is accounted for using the successful efforts method. Under this method, all general exploration 
and evaluation costs are expensed as incurred except the direct costs of acquiring the rights to explore, drilling exploratory wells and 
evaluating the results of drilling. These direct costs are capitalised as exploration and evaluation assets pending the determination of the 
success of the well. If a well does not result in a successful discovery, the previously capitalised costs are immediately expensed.

The carrying amounts of exploration and evaluation assets are reviewed at each reporting date to determine whether any of the following 
indicators of impairment are present:

•

•

•

•

the right to explore has expired, or will expire in the near future, and is not expected to be renewed;

further exploration for and evaluation of resources in the specific area is not budgeted or planned for;

the Group has decided to discontinue activities in the area; or

there is sufficient data to indicate the carrying value is unlikely to be recovered in full from successful development or by sale.

Where an indicator of impairment exists, the asset's recoverable amount is estimated. If it is concluded that the carrying value of an exploration 
and evaluation asset is unlikely to be recovered by future exploitation or sale, an impairment is recognised in the income statement for 
the difference.

Key judgement

Recoverability of exploration and evaluation assets
Assessment of the recoverability of capitalised exploration and evaluation expenditure requires certain estimates and assumptions to be 
made as to future events and circumstances, particularly in relation to whether economic quantities of reserves have been discovered. 
Such estimates and assumptions may change as new information becomes available. Additionally, future climate-related conditions, 
legislation and policies may impact whether reserve quantities are capable of economic extraction. The recoverability of these assets 
continues to be monitored by the Group. Such estimates and assumptions may change as new information becomes available.

Upon approval of the commercial development of a project, the exploration and evaluation asset is classified as a development asset. Once 
production commences, development assets are transferred to PP&E.

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Annual Report 2022

C3 Property, plant and equipment

Owned

Right-of-use

Total

Plant 
and equipment

Land 
and buildings

Capital work 
in progress

Plant 
and equipment

Land 
and buildings

$m

2022

Cost

Less: Accumulated 
depreciation and 
impairment losses

Total

Balance as at 1 July 2021

Additions

Net restoration movement

Disposals

Modifications to lease terms

Depreciation/amortisation

Transfers within PP&E

Transfers to intangibles

Effect of movements in foreign 
exchange rates

Balance as at 30 June 2022

2021

Cost

Less: Accumulated 
depreciation and 
impairment losses

Total

Balance as at 1 July 2020

Additions

Disposals

Modifications to lease terms

Depreciation/amortisation

Impairment

Transfers within PP&E

Transfers from intangibles

Effect of movements in foreign 
exchange rates

5,952

194

(3,649)

2,303

2,458

41

(31)

(9)

-

(216)

60

(3)

3

2,303

5,863

(3,405)

2,458

3,443

36

-

-

(294)

(801)

71

5

(2)

(79)

115

112

6

-

-

-

(3)

-

-

-

115

194

(82)

112

143

1

-

-

(4)

(28)

-

-

-

371

-

371

317

114

-

-

-

-

(60)

-

-

371

317

-

317

278

110

-

-

-

-

(71)

-

-

317

266

397

7,180

(97)

169

84

127

-

-

12

(54)

-

-

-

169

162

(78)

84

108

29

(13)

12

(48)

(4)

-

-

-

84

(100)

297

320

1

-

(78)

85

(31)

-

-

-

(3,925)

3,255

3,291

289

(31)

(87)

97

(304)

-

(3)

3

297

3,255

408

6,944

(88)

320

359

1

(1)

1

(40)

-

-

-

-

320

(3,653)

3,291

4,331

177

(14)

13

(386)

(833)

-

5

(2)

3,291

Balance as at 30 June 2021

2,458

112

Owned PP&E
PP&E is recorded at cost less accumulated depreciation, amortisation and impairment charges. Cost includes the estimated future cost of 
required closure and rehabilitation.

The carrying amounts of assets are reviewed to determine if there is any indication of impairment. If any such indication exists, the asset's 
recoverable amount is estimated and if required, an impairment is recognised in the income statement.

Depreciation is calculated on a straight-line basis so as to write off the cost of each asset over its expected useful life. Leasehold improvements 
are amortised over the period of the relevant lease or estimated useful life, whichever is shorter. Land and capital work in progress are 
not depreciated.

The estimated useful lives used in the calculation of depreciation are shown below.

• Buildings, including leasehold improvements 10 to 50 years

• Plant and equipment 3 to 30 years

Financial Statements

109

C3 Property, plant and equipment (continued)

Leased PP&E
The Group's leased assets include commercial offices, power stations, LPG terminals and shipping vessels, motor vehicles and other items 
of equipment.

ROU assets are recognised at the commencement of a lease. ROU assets are initially valued at the corresponding lease liability amount 
adjusted for any payments already made, lease incentives received or initial direct costs incurred when entering into the lease. Where the 
Group is required to restore the ROU asset at the end of the lease, the cost of restoration is also included in the value of the ROU asset.

ROU assets are depreciated on a straight-line basis over the shorter of the lease term or the useful life of the ROU asset. The carrying amounts 
of ROU assets are reviewed to determine if there is any indication of impairment. If any such indication exists, the asset's recoverable amount 
is estimated, and if required, an impairment is recognised in the income statement.

Refer to note D2 for discussion of the recognition and measurement of associated lease liability balances.

Key judgements and estimates

Recoverability of carrying values: Estimates of recoverable amounts are based on an asset’s value-in-use or fair value less costs to sell, 
whichever is higher. The recoverable amount of these assets is sensitive to changes in key assumptions. Refer to note C8 for further details.

Estimation of useful economic lives: A technical assessment of the operating life of an asset requires significant judgement. Useful lives 
are amended prospectively when a change in the operating life is determined. The estimated useful lives of our assets align with our climate 
change strategy commitments.

Restoration provisions: An asset's carrying value includes the estimated future cost of required closure and rehabilitation activities. Refer 
to note C6 for a judgement related to restoration provisions.

Climate change risks: Future climate-related conditions, legislation and policies may have an impact on these estimates and continues to 
be monitored.

Lease term: Where lease arrangements contain options to extend the term or terminate the contract, the Group assesses whether it is 
'reasonably certain' that the option to extend or terminate will be exercised. Consideration is given to all facts and circumstances that create 
an economic incentive to extend or terminate the contract. Lease liabilities and ROU assets are measured using the reasonably certain 
contract term.

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Annual Report 2022

C4 Intangible assets

Goodwill net of impairment losses

Software and other intangible assets

Accumulated amortisation

Total

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

Reconciliations of the carrying amounts of each class of intangible asset are set out below.

$m

Balance as at 30 June 2021 restated

Additions2

Transfers from PP&E

Impairment3

Amortisation expense

Balance as at 30 June 2022

Balance as at 1 July 2020 restated

Additions4

Transfers to PP&E

Impairment3

Amortisation expense

Balance as at 30 June 2021 restated

2022

$m

1,965

1,684

(1,126)

2,523

Goodwill1

Software
and other
intangibles1

4,136

25

-

(2,196)

-

1,965

4,818

-

-

(682)

-

4,136

522

183

3

-

(150)

558

555

135

(5)

-

(163)

522

20211

$m

4,136

1,528

(1,006)

4,658

Total1

4,658

208

3

(2,196)

(150)

2,523

5,373

135

(5)

(682)

(163)

4,658

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2 Includes $77 million of software and other intangibles related to the acquisition of WINconnect Pty Ltd and $25 million of goodwill (refer to note F2). Additions also include 

$15 million related to the acquisition of Yarrabee Solar Farm and $12 million related to the acquisition of the Carisbrook Solar Farm.

3 Includes $2,196 million (2021: $671) million related to the impairment of Energy Markets segment goodwill. The remaining prior year amount of $11 million related to goodwill 

written off when Horan & Bird Energy Pty Ltd was sold.

4 Additions include amounts relating to the build of the Kraken technology platform, along with amounts relating to the implementation of a new Enterprise Resource Planning 

system for the Group.

Goodwill is stated at cost less any accumulated impairment losses and is not amortised. Software and other intangible assets are stated at cost 
less any accumulated impairment losses and accumulated amortisation. Amortisation is recognised as an expense on a straight-line basis over 
the estimated useful lives of the intangible assets.

The average amortisation rate for software and other intangibles (excluding capital work in progress) was 11 per cent (2021: 13 per cent).

Key judgements and estimates

Recoverability of carrying values: Refer to note C8 for further details.

C5 Trade and other payables

Current

Trade payables and accrued expenses

Deferred consideration1

Total

1 The prior year deferred consideration balance was settled during the year. Refer to note B4.

2022

$m

3,485

-

3,485

2021

$m

2,205

202

2,407

Financial Statements

C6 Provisions

$m

Balance as at 1 July 2021

Provisions recognised

Provisions released

Payments/utilisation

Unwinding of discounting

Effect of movements in foreign exchange rates

Balance as at 30 June 2022

Current

Non-current

Total provisions

111

Total

1,262

448

(496)

(20)

4

36

1,234

378

856

1,234

Restoration1

Onerous
contracts2

Other3

675

9

(48)

(8)

1

-

629

411

393

(446)

-

3

36

397

176

46

(2)

(12)

-

-

208

1 The closing balance includes amounts relating to the restoration of the Eraring Power Station site and other generation gas power station locations. Also included within this 

balance are rehabilitation provisions for contamination at existing and legacy operating sites.

2 All contracts in which the unavoidable costs of meeting the obligations exceed the economic benefits are deemed onerous and require a provision to be recognised up front. 

The opening balance included an onerous contract provision of $398 million (US$299 million) for the Cameron LNG purchase contract which has been released during the 

year. The closing balance relates to an onerous contract provision of $397 million (US$273 million) (30 June 2021: $13 million) for the LNG sales contract with ENN.

3 The closing balance of other provisions primarily relates to costs for compliance with safety standard requirements relating to the Eraring ash dam wall, costs associated with 

the new Myuna Bay Recreation Centre facility, costs associated with the Eraring Power Station closure and a make good provision relating to existing property leases.

Restoration provisions are initially recognised at the best estimate of the costs to be incurred in settling the obligation. Where restoration 
activities are expected to occur more than 12 months from the reporting period, the provision is discounted using a risk-free rate that reflects 
current market assessments of the time value of money. The unwinding of the discount is recognised in each period as interest expense.

At each reporting date, the restoration provision is remeasured in line with changes in discount rates, and changes to the timing or amount 
of costs to be incurred, based on current legal requirements and technology. Any changes in the estimated future costs associated with:

• Restoration and dismantling are added to or deducted from the related asset; and

• Environmental rehabilitation are expensed in the current period.

Key estimate

Restoration, rehabilitation and dismantling costs

The Group estimates the cost of future site restoration activities at the time of installation or construction of an asset, or when an obligation 
arises. Restoration often does not occur for many years and thus significant judgement is required as to the extent of work, cost and timing 
of future activities. Future climate-related conditions, legislation and policies may have an impact on these estimates and will continue to 
be monitored.

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Annual Report 2022

C7 Other financial assets and liabilities

$m

Other financial assets

Measured at fair value through profit or loss

MRCPS issued by APLNG

Settlement Residue Distribution Agreement units

Environmental scheme certificates

Investment fund units

Debt and other securities

Equity securities

Measured at fair value through other comprehensive income

Equity securities

Measured at amortised cost

Futures collateral

AEMO cash deposits

Debt instruments

Total other financial assets

Other financial liabilities

Measured at fair value through profit or loss

Environmental scheme surrender obligations

Measured at amortised cost

Futures collateral

Financial guarantees1

Total other financial liabilities

2022

2021

Current

Non-current

Current

Non-current

-

109

444

-

14

-

-

3

290

-

860

417

304

6

727

-

70

-

59

22

1

51

-

-

40

243

-

-

-

-

-

42

255

-

12

-

-

194

-

-

503

321

23

-

344

1,296

31

-

64

22

6

46

-

-

-

1,465

-

-

15

15

1 Financial guarantee contracts are initially recognised at fair value. Subsequently, they are measured at either the amount of any determined loss allowance or at the amount 

initially recognised less any cumulative income recognised, whichever is larger. This financial guarantee relates to the working capital facility entered into by Octopus Energy 

with its financiers, as referred to in note B4, for which the Group has provided a guarantee.

C8 Impairment of non-current assets

Cash-generating units

Assets are grouped together into the smallest group of individual assets that generate largely independent cash inflows (cash generating unit 
or (CGU)). The Energy Markets segment consists of the following materially distinct CGUs:

• Retail CGU: incorporates Mass Market customers, Commercial & Industrial customers and the Wholesale & Trading businesses for 

electricity and natural gas commodities. The Wholesale & Trading business includes various electricity PPAs and major wholesale gas 
supply contracts.

• Generation CGU: incorporates cash flows from Origin's power stations.

• LPG CGU: supplies and distributes LPG to residential and business locations across Australia and the Pacific.

The carrying amounts of the CGUs are reviewed at each reporting date to determine whether there is any indication of impairment. Where 
an indicator of impairment exists, or where goodwill is present, a formal estimate of the recoverable amount is made.

Only the Retail CGU contains a material goodwill balance and an impairment assessment of the recoverable amount was performed at 
June 2022. 

Impairment testing for the year ended 30 June 2022

Origin’s assessment of the carrying value of its non-current assets in the Retail CGU considers a range of macroeconomic factors, including 
market prices for wholesale electricity and gas, large-scale generation certificates (LGCs), retail market dynamics, discount rates and costs.

In order to manage risk around the volatility of its energy supply costs, the Group enters into long-term and short-term derivative contracts. 
The recent extraordinary market conditions have resulted in a significant increase in wholesale electricity and gas prices and associated 
in-the-money derivative assets at 30 June 2022 (refer note D4).

The recoverable amount of the Retail CGU is assessed independently of the derivative cashflows which results in a cost of energy that is based 
on market prices and not the contracted hedged price. Accordingly, the higher assumed market prices have resulted in a non-cash impairment 
of $2,196 million recognised as at 30 June 2022.

Financial Statements

113

C8 Impairment of non-current assets (continued)

Although the in-the-money derivative assets will unwind in future periods as the underlying contracts are settled, the impairment is allocated 
to goodwill in the Retail CGU and cannot be reversed in future periods. The impairment expense recognised by class of asset is outlined in 
the following table.

Impairment expense

Non-current assets

PP&E

Intangible assets

Total impairment expense on non-current assets

Note

C3

C4

A4

2022
$m

-

2,196

2,196

2021
$m

833

671

1,504

The carrying amount of the remaining goodwill allocated to the Retail CGU is $1,943 million after the recognition of the impairment.

Recoverable amount

The recoverable amount of the Retail CGU has been determined using value-in-use models that include an appropriate terminal value. The 
value-in-use calculations are sensitive to a number of key assumptions requiring management judgement, including future commodity prices, 
regulatory policies, and the outlook for the market supply-and-demand conditions. The key assumptions used by the Group in its impairment 
assessment are shown in the table below.

Key assumptions

Energy Markets

Commodity prices

Future commodity price assumptions impact the recoverability of carrying values and are reviewed at least twice annually. 
The Group's estimate of future commodity prices is made with reference to internally derived forecast data, current spot 
prices, external market analysts' forecasts and forward curves. Where volumes are contracted, future prices reflect the 
contracted price.

Long-term 
growth rates

Cash flows are projected for the term of electricity PPAs and major wholesale supply contracts in the Retail CGU. Other Retail 
CGU cash flows are projected for five years. The growth rate used to extrapolate Retail cash flows beyond the initial period 
projected averages 2.3 per cent, analogous to long term Consumer Price Index.

Customer numbers

This is based on a review of actual customer numbers and historical data regarding levels of customer churn. The historical 
analysis is considered against current and expected market trends and competition for customers.

Gross margin and 
operating cost

This is based on a review of actual gross margins and cost per customer, and consideration of current and expected market 
movements and impacts.

Discount rate

Discount rates used are the pre-tax equivalent of a post-tax discount rate of 7.2 per cent (2021: 6.8 per cent).

Climate risk

The Group continues to develop its assessment of the potential impacts of climate change and the transition to a low-carbon 
economy and this has been considered in the assumptions used as part of the recoverable amount assessment.

Sensitivity analysis

To the extent the Retail CGU, that includes a significant portion of goodwill, has been written down to the recoverable amount in the current 
year, any change in key assumptions on which the valuation is based would further impact asset carrying values. When modelled in isolation, 
it is estimated that changes in the key assumptions would result in the following additional impairments in FY2022.

Sensitivity

Retail

Discount rates 
increase by 1%

Long-term 
growth rates 
decrease by 1%

(728)

(540)

Changes in any of the aforementioned assumptions may be accompanied by changes in other assumptions, which may have an 
offsetting impact.

114

Annual Report 2022

D Capital, funding and risk management

This section focuses on the Group's capital structure and related financing costs. Information is also presented about how the Group manages 
capital, and the various financial risks to which the Group is exposed through its operating and financing activities.

D1 Capital management

The Group’s objective when managing capital is to make disciplined capital allocation decisions between investment in growth, distributions 
to shareholders and to maintain an optimal capital structure while maintaining access to capital. Management believes that a strong 
investment-grade credit rating (Baa2) and an appropriate level of net debt are required to meet these objectives. The Group's current credit 
rating is Baa2 (stable outlook) from Moody's.

Key factors considered in determining the Group's capital structure and funding strategy at any point in time include expected operating cash 
flows, capital expenditure plans, the maturity profile of existing debt facilities, the dividend policy, and the ability to access funding from banks, 
capital markets and other sources.

The Group monitors its capital requirements through a number of metrics including the gearing ratio (target range of approximately 20 to 
30 per cent) and an adjusted net debt to adjusted underlying EBITDA ratio (target range of 2.0x to 3.0x). These targets are consistent with 
attaining a strong investment-grade rating. Underlying EBITDA is a non-statutory (non-IFRS) measure.

The gearing ratio is calculated as adjusted net debt divided by adjusted net debt plus total equity. Net debt, which excludes cash held by 
Origin to fund APLNG-related operations, is adjusted to take into account the effect of FX hedging transactions on the Group’s foreign 
currency debt obligations. The adjusted net debt to adjusted underlying EBITDA ratio is calculated as adjusted net debt divided by adjusted 
underlying EBITDA (Origin's underlying EBITDA less Origin's share of APLNG underlying EBITDA plus net cash flow from APLNG) over the 
relevant rolling 12-month period.

The Group monitors its current and future funding requirements for at least the next five years and regularly assesses a range of funding 
alternatives to meet these requirements in advance of when the funds are required.

Borrowings

Lease liabilities

Total interest-bearing liabilities

Less: Cash and cash equivalents excluding APLNG-related cash2

Net debt

Fair value adjustments on FX hedging transactions

Adjusted net debt

Total equity

Total capital

Gearing ratio

Ratio of adjusted net debt to adjusted underlying EBITDA

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2 This balance excludes $48 million (2021: $30 million) of cash held by Origin, as upstream operator, to fund APLNG-related operations.

2022

$m

2,855

535

3,390

(572)

2,818

20

2,838

10,022

12,860

22%

1.9x

20211

$m

4,765

463

5,228

(442)

4,786

(147)

4,639

9,475

14,114

33%

2.9x

The Group has undertaken a bank debt extension during the year ended 30 June 2022. This activity has been aimed at strengthening the 
capital profile by extending the weighted average tenor of the Group’s debt portfolio.

A summary of key transactions is shown below.

Bank debt facility extension
13 December 2021 - extended the maturity dates of $2.4 billion of bank debt facilities from FY2024/FY2025 to FY2026/FY2027.

Refinance of bank guarantee facilities
13 April 2022 - extended the maturity dates of A$500 million of bank guarantee facilities from FY2023/FY2025 to FY2025/FY2026.

Debt maturity
30 September 2021 - repaid the €800 million eight-year note issued under the Euro Medium Term Note program. The notes had been 
swapped to A$1,164 million.

13 October 2021 - repaid US$500 million ten-year 144a note.

Share buy-back
1 April 2022 to 22 June 2022 - Origin incurred A$250 million on a share buy-back with 38.5 million shares bought back at an average price 
of A$6.50 per share.

Financial Statements

115

D2 Interest-bearing liabilities

Current

Bank loans - unsecured

Capital market borrowings – unsecured

Total current borrowings

Lease liabilities – secured

Total current interest-bearing liabilities

Non-current

Bank loans – unsecured

Capital market borrowings – unsecured

Total non-current borrowings

Lease liabilities – secured

Total non-current interest-bearing liabilities

2022

$m

2021

$m

29

228

257

59

316

508

2,090

2,598

476

3,074

-

1,938

1,938

66

2,004

537

2,290

2,827

397

3,224

Interest-bearing liabilities are initially recorded at the amount of proceeds received (fair value) less transaction costs. After that date, the 
liability is amortised to face value at maturity using an effective interest rate method.

Lease liabilities are initially measured at the present value of future lease payments discounted at the Group's incremental borrowing rate. 
Where a lease includes termination and/or extension options, the impact of these options on the amount of future payments is included where 
exercise of such options is considered reasonably certain to occur. Interest expense is charged on outstanding lease liabilities that reduce over 
time as periodic payments are made.

The lease liability is remeasured when certain events occur, including changes in the lease term or changes in future lease payments such as 
those resulting from inflation-linked indexation or market rate rent reviews. On remeasurement of lease liabilities, a corresponding adjustment 
is made to the ROU asset.

The contractual maturity of lease liabilities is disclosed within the liquidity table in note D4.

The contractual maturities of non-current borrowings are as set out below.

One to two years

Two to five years

Over five years

Total non-current borrowings

2022

$m

123

508

1,967

2,598

2021

$m

237

534

2,056

2,827

Some of the Group's borrowings are subject to terms that allow the lender to call on the debt in the event of a breach of covenants. As at 
30 June 2022, these terms had not been triggered.

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Annual Report 2022

D3 Contributed equity

Ordinary share capital

Opening balance

On-market share buy-back1

Less treasury shares:

Opening balance

Shares purchased on market

Utilisation of treasury shares on vesting of employee share schemes 
and DRP

Total treasury shares

Closing balance

2022

2021

2022

2021

Number of shares

$m

1,761,211,071

1,761,211,071

(38,463,400)

-

(6,046,328)

(3,212,930)

(13,748,516)

(20,903,960)

13,895,660

18,070,562

(5,899,184)

(6,046,328)

7,163

(250)

(25)

(75)

64

(36)

7,163

-

(18)

(96)

89

(25)

1,716,848,487

1,755,164,743

6,877

7,138

1 During the period, a buy-back of 38.5 million shares was completed. As at 30 June 2022, the total consideration paid for shares bought back on-market was $250 million at 

an average price of $6.50 per share.

Ordinary shares
Holders of ordinary shares are entitled to receive dividends as determined from time to time and are entitled to one vote per share at 
shareholders' meetings. In the event of the winding up of the Group, ordinary shareholders rank after creditors, and are fully entitled to any 
proceeds of liquidation. The Group does not have authorised capital or par value in respect of its issued shares.

Treasury shares
Where the Group or other members of the Group purchase shares in the Company, the consideration paid is deducted from the total 
shareholders' equity and the shares are treated as treasury shares until they are subsequently sold, reissued or cancelled. Treasury shares are 
purchased primarily for use on vesting of employee share schemes and the DRP. Shares are accounted for at a weighted average cost.

D4 Financial risk management

Overview

The Group's day-to-day operations, new investment opportunities and funding activities introduce financial risks, which are actively managed 
by the Board Risk Committee. These risks are grouped into the following categories:

• Credit: The risk that a counterparty will not fulfil its financial obligations under a contract or other arrangement.

• Market: The risk that fluctuations in commodity prices, foreign exchange rates and interest rates will adversely impact the Group's result.

• Liquidity: The risk that the Group will not be able to meet its financial obligations as they fall due.

Risk

Credit

Market

Liquidity

Sources

Risk management framework

Financial exposure

Sale of goods 
and services and 
hedging activities

The Board approves credit risk 
management policies that determine the 
level of exposures it is prepared to accept. It 
also allocates credit limits to counterparties 
based on publicly available credit 
information from recognised providers 
where available.

Notes C1, C7 and D4 disclose the carrying amounts of 
financial assets, which represent the Group's maximum 
exposure to credit risk at the reporting date. The Group 
utilises International Swaps and Derivative Association 
(ISDA) agreements to limit exposure to credit risk by 
netting amounts receivable from and payable to individual 
counterparties (refer to note G8).

Purchase and sale 
of commodities and 
funding risks

Ongoing business 
obligations and new 
investment 
opportunities

The Board approves policies that ensure 
the Group is not exposed to excess 
risk from market volatility. These policies 
include active hedging of price and volume 
exposures within prescribed cash flow at 
risk and value at risk limits.

The Group centrally manages its liquidity 
position through cash flow forecasting 
and maintenance of minimum levels of 
liquidity determined by the Board. The 
debt portfolio is periodically reviewed to 
ensure there is funding flexibility and an 
appropriate maturity profile.

See below for further discussion of market risk.

Analysis of the Group's liquidity profile as at the reporting 
date is presented at the end of this section.

Financial Statements

117

D4 Financial risk management (continued)

Market risk

The scope of the Group's operations and activities exposes it to multiple markets risks. The table below summarises these risks by nature of 
exposure and provides information about the risk mitigation strategies being applied.

Nature

Sources of financial exposure

Risk management strategy

Commodity price

Future commercial transactions and recognised assets and 
liabilities exposed to changes in electricity, oil, gas, coal or 
environmental scheme certificate prices

Foreign exchange

Foreign-denominated borrowings and investments (e.g., 
APLNG MRCPS) and future foreign currency denominated 
commercial transactions

Interest rate

Variable-rate borrowings (cash flow risk) and fixed-rate borrowings 
(fair value risk)

Due to vertical integration, a significant portion of the 
Group's spot electricity purchases from the NEM are 
naturally hedged by generation sales into the NEM at 
spot prices. The Group manages its remaining exposure 
to commodity price fluctuations beyond Board-approved 
limits using a mix of commercial contracts (such as 
fixed-price purchase contracts) and derivative instruments 
(described below).

The Group limits its exposure to changes in foreign 
exchange rates through forward foreign exchange 
contracts and cross-currency interest rate swaps. In certain 
circumstances, borrowings are left in a foreign currency, or 
swapped from one foreign currency to another, to hedge 
expected future business cash flows in that currency. 
Significant foreign-denominated transactions undertaken 
in the normal course of operations are managed on a 
case-by-case basis.

Interest rate exposures are kept within an acceptable range 
as determined by the Board. Risk limits are managed 
through a combination of fixed-rate and fixed-to-floating 
interest rate swaps.

Derivatives to manage market risks

Derivative instruments are contracts with values that are derived from an underlying price index (or other variable) that require little or no initial 
net investment, and that are settled at a future date.

The Group uses the following types of derivative instruments to mitigate market risk.

Forwards

Futures

Swaps

Options

A contract documenting the underlying reference rate (such as benchmark price or exchange rate) to be paid or received on 
a notional principal obligation at a future date.

An exchange-traded contract to buy or sell an asset for an agreed price at a future date. Futures are net-settled in cash without 
physical delivery of the underlying asset.

A contract in which two parties exchange a series of cash flows for another (such as fixed-for-floating interest rate).

A contract in which the buyer has the right, but not the obligation, to buy (a call option) or sell (a put option) an instrument at 
a fixed price in the future. The seller has the corresponding obligation to fulfil the transaction if the buyer exercises the option.

Structured 
electricity products

A non-standardised contract, generally with an energy market participant, to acquire long-term capacity. These contracts 
typically contain features similar to swaps and call options.

Derivatives are carried on the balance sheet at fair value. Movements in the price of the underlying variables, which cause the value of the 
contract to fluctuate, are reflected in the fair value of the derivative.

The method of recognising changes in fair value depends on whether the derivative is designated in an 'accounting' hedge relationship. 
Derivatives not designated as accounting hedges are referred to as 'economic' hedges.

Fair value gains and losses attributable to economic hedges are recognised in the income statement and resulted in a $1,153 million gain (2021: 
$377 million loss) for the year. Fair value gains and losses attributable to accounting hedges are discussed in the Hedge Accounting section.

118

Annual Report 2022

D4 Financial risk management (continued)

$m

2022

Economic hedges

Commodity contracts

Foreign exchange and interest rate contracts

Total economic hedges

Accounting hedges

Commodity contracts

Foreign exchange and interest rate contracts

Total accounting hedges

Total

20211

Economic hedges

Commodity contracts

Foreign exchange and interest rate contracts

Total economic hedges

Accounting hedges

Commodity contracts

Foreign exchange and interest rate contracts

Total accounting hedges

Total

Assets

Liabilities

Current

Non-current

Current

Non-current

1,112

5

1,117

2,016

41

2,057

3,174

434

10

444

218

107

325

769

1,766

-

1,766

1,309

-

1,309

3,075

201

-

201

121

44

165

366

(1,417)

(48)

(1,465)

(125)

-

(125)

(1,590)

(537)

(54)

(591)

(150)

-

(150)

(741)

(1,526)

(3)

(1,529)

(161)

(54)

(215)

(1,744)

(1,231)

(60)

(1,291)

(44)

(60)

(104)

(1,395)

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

Hedge accounting

The Group uses two types of hedge accounting relationships, as detailed below.

Fair value hedge

Cash flow hedge

Objective of 
hedging 
arrangement

To hedge our exposure to changes in the fair value of a recognised 
asset or liability or unrecognised firm commitment, caused by 
interest rate or foreign currency movements.

To hedge our exposure to variability in the cash flows of a 
recognised asset or liability, or a highly probable forecast 
transaction caused by commodity price, interest rate and 
foreign currency movements.

Effective 
hedge portion

Hedge 
ineffectiveness

All changes in the fair value of the underlying item relating to 
the hedged risk and the change in fair value of derivatives are 
recognised in profit and loss at the same time.

The effective portion of changes in the fair value of 
derivatives designated as cash flow hedges are recognised 
in the hedge reserve.

Certain determinants of fair value, such as credit charges included in derivatives, or mismatches between the timing of 
the instrument and the underlying item in the hedge relationship, can cause hedge ineffectiveness. Any ineffectiveness is 
recognised immediately in profit or loss as a change in the fair value of derivatives.

Hedged item sold 
or repaid

The unamortised fair value adjustment is recognised immediately 
in profit or loss.

Amounts accumulated in the hedge reserve are transferred 
immediately to profit or loss.

Hedging instrument 
expires, is sold, is 
terminated or no 
longer qualifies for 
hedge accounting

The unamortised fair value adjustment is recognised in profit or 
loss when the hedged item is recognised in profit or loss. This may 
occur over time if the hedged item is amortised over the period 
to maturity.

The amount previously deferred in the hedge reserve is only 
transferred to profit or loss when the hedged item is also 
recognised in profit or loss.

At 30 June 2022 all derivatives designated in hedge accounting relationships are cash flow hedges.

Financial Statements

119

D4 Financial risk management (continued)

Cash flow hedges

A number of derivative contracts have been designated as cash flow hedges of the Group's exposure to foreign exchange, interest rate and 
commodity price fluctuations. Designated derivatives include swaps, options, futures and forwards.

The Group's structured electricity products, though important to the overall risk management strategy, do not qualify for hedge accounting. 
As such, they are not represented in the summary information below.

2022

Nominal hedge volumes

Hedge rates

FX and interest

EUR 750m

AUD/EUR
0.62-0.81;
Fixed
3.2%-6.6%

Electricity

25.4 TWh

$29-$303

Crude oil

8,085k barrels

US$53-US$115 (ICE 
Brent); US$6.5-
US$30.6 (JKM)

Propane

24k mt

US$285-US$728

Timing of cash flows – up to

Sep 2029

Dec 2025

Oct 2024 (ICE Brent); 
Dec 2025 (JKM)

Dec 2023

Carrying amounts - $m

FX and interest

Electricity

Crude oil

Propane

Hedging instrument – assets1

Hedging instrument – liabilities1

Hedge reserve2

Fair value increase/(decrease) - $m

Hedging instrument

Hedged item

Hedge ineffectiveness3

Reconciliation of hedge reserve - $m

Effective portion of hedge gains/(losses)

Transfer of deferred losses/(gains) to:

– Cost of sales

– Finance costs

Tax on above items

Change in hedge reserve (post-tax)

41

(54)

(4)

3

(4)

(1)

24

-

27

(16)

35

2,386

(102)

(2,284)

2,337

(2,337)

-

930

(184)

(770)

563

(562)

1

2,304

1,065

34

-

(701)

1,637

(484)

-

(174)

407

9

-

(9)

(6)

6

-

14

(20)

-

2

(4)

1 Hedging instruments are included in the derivatives balance on the statement of financial position.

2 No hedges have been discontinued or de-designated in the current period.

3 Hedge ineffectiveness is recognised within expenses in the income statement as a change in fair value of derivatives.

Total

3,366

(340)

(3,067)

2,897

(2,897)

-

3,407

(470)

27

(889)

2,075

120

Annual Report 2022

D4 Financial risk management (continued)

Residual market risk

After hedging, the Group's financial instruments remain exposed to changes in market pricing. The following is a summary of the Group's 
residual market risk and the sensitivity of financial instrument fair values to reasonably possible changes in market pricing at the reporting date.

Risk

Residual exposure

Relationship to financial instruments value

USD exchange rate

• USD debt

• FX and commodity derivatives with USD pricing

Euro exchange rate

• Currency basis on the CCIRSs swapping euro debt 

to AUD

Interest rates

•

Interest rate swaps

• Long-term derivatives and other financial assets/
liabilities for which discounting is significant

Electricity forward price

• Electricity forward price

Oil forward price

• Commodity derivatives

Renewable Energy 
Certificates (REC) 
forward price

Liquidity risk

• REC forwards

• Environmental scheme certificates

• Environmental scheme surrender obligations

A 10 per cent increase/decrease in the USD exchange rate 
would increase/decrease fair value by $47/($48) million 
(2021: $21/($18 million).

A 10 per cent increase/decrease in the euro exchange rate 
would increase/decrease fair value by $6 million (2021: 
$11 million).

A 100 basis point increase/decrease in interest rates 
would impact fair value by ($27)/$26 million (2021: ($38)/
$39 million).

A 10 per cent increase/decrease in electricity forward 
prices would increase/decrease fair value by $355 million 
(2021: $68/($69) million).

A 10 per cent increase/decrease in oil forward prices would 
increase/decrease fair value by $139/(140) million (2021: 
$44/(40) million).

A 10 per cent increase/decrease in renewable energy 
certificate forward prices would increase/decrease fair 
value by $32 million (2021: $23 million).

The table below sets out the timing of the Group's payment obligations, as compared to the receipts expected from the Group's financial 
assets, and available undrawn facilities. Amounts are presented on an undiscounted basis and include cash flows not recorded on the 
statement of financial position, such as interest payments for borrowings.

2022

$m

Bank loans and capital markets borrowings

Lease liabilities

Net other financial assets/liabilities

Derivative liabilities

Derivative assets

Net liquidity exposure

Less than
one year

One to 
two years

Two to 
five years

(343)

(88)

(69)

(500)

(2,104)

3,975

1,871

1,371

(211)

(69)

76

(204)

(959)

1,736

777

573

(749)

(166)

52

(863)

(314)

941

627

(236)

Over
five years

(2,082)

(364)

74

(2,372)

(285)

347

62

(2,310)

The amount of cash and committed undrawn floating rate borrowing facilities expiring beyond one year is $3,274 million.

2021

$m

Bank loans and capital markets borrowings

Lease liabilities

Net other financial assets/liabilities

Derivative liabilities

Derivative assets

Net liquidity exposure

Less than
one year

(2,068)

(91)

754

(1,405)

(779)

902

123

(1,282)

One to
two years

Two to
five years

Over
five years

(313)

(74)

199

(188)

(289)

211

(78)

(266)

(754)

(147)

7

(894)

(137)

39

(98)

(992)

(2,221)

(276)

-

(2,497)

(68)

28

(40)

(2,537)

The amount of cash and committed undrawn floating rate borrowing facilities expiring beyond one year is $3,279 million.

Financial Statements

121

D5 Fair value of financial assets and liabilities

Financial assets and liabilities measured at fair value are grouped into the following categories based on the level of observable market data 
used in determining that fair value:

• Level 1: The fair value of financial instruments traded in active markets (such as exchange-traded derivatives and RECs) is the quoted market 

price at the end of the reporting period. These instruments are included in level 1.

• Level 2: The fair value of financial instruments that are not traded in an active market (such as over-the-counter derivatives) is determined 
using valuation techniques that maximise the use of observable market data. If all significant inputs required to fair value an instrument are 
observable, either directly (as prices) or indirectly (derived from prices), the instrument is included in level 2.

• Level 3: If one or more of the significant inputs required to fair value an instrument is not based on observable market data, the instrument 

is included in level 3.

2022

Derivative financial assets

Other financial assets at fair value

Financial assets carried at fair value

Derivative financial liabilities

Other financial liabilities at fair value

Financial liabilities carried at fair value

2021

Derivative financial assets

Other financial assets at fair value

Financial assets carried at fair value

Derivative financial liabilities

Other financial liabilities at fair value

Financial liabilities carried at fair value

Note

D4

C7

D4

C7

D4

C7

D4

C7

Level 1
$m

1,917

623

2,540

(471)

(417)

(888)

Level 1
$m

44

328

372

(86)

(321)

(407)

Level 2
$m

3,382

73

3,455

(2,294)

-

(2,294)

Level 2
$m

1,066

77

1,143

(1,097)

-

(1,097)

Level 3
$m

950

74

1,024

(569)

-

(569)

Level 3
$m1

25

1,369

1,394

(953)

-

(953)

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

The following table shows a reconciliation of movements in the fair value of level 3 instruments during the period.

Balance as at 30 June 2021

Prior year restatements1

Balance as at 1 July 2021 restated

New instruments recognised in the period

Instruments transferred out of level 3

Net cash settlements paid/(received)

Gains/(losses) recognised in other comprehensive income

Gains/(losses) recognised in profit or loss

Change in fair value

Cost of sales

Interest income

Balance as at 30 June 2022

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

Total
$m

6,249

770

7,019

(3,334)

(417)

(3,751)

Total
$m1

1,135

1,774

2,909

(2,136)

(321)

(2,457)

$m

1,330

(889)

441

72

(218)

(1,353)

4

1,267

196

46

455

122

Annual Report 2022

D5 Fair value of financial assets and liabilities (continued)

Valuation techniques used to determine fair values
The various techniques used to value the Group's financial instruments are summarised in the following table. To the maximum extent possible, 
valuations are based on assumptions that are supported by independent and observable market data. For instruments that settle more 
than 12 months from the reporting date, cash flows are discounted at the applicable market yield, adjusted to reflect the credit risk of the 
specific counterparty.

Instrument

Fair value methodology

Financial instruments traded in 
active markets

Interest rate swaps and CCIRS

Forward foreign 
exchange contracts

Quoted market prices at reporting date.

Present value of expected future cash flows based on observable yield curves and forward exchange rates at 
reporting date.

Present value of future cash flows based on observable forward exchange rates at reporting date.

Electricity, oil and other commodity 
derivatives (not traded in 
active markets)

Present value of expected future cash flows based on observable forward commodity price curves (where 
available). The majority of the Group's level 3 instruments are commodity contracts for which further detail on 
the significant unobservable inputs is included below.

Other financial instruments

Discounted cash flow analysis.

Long-term borrowings

Present value of future contract cash flows.

Fair value measurements using significant unobservable inputs (level 3)
The following is a summary of the Group's level 3 financial instruments, the significant inputs for which market observable data is unavailable, 
and the sensitivity of the estimated fair values to the assumptions applied by management.

Instrument1

Unobservable inputs

Relationship to fair value

Electricity 
derivatives

Forward electricity spot market price curve 
Forward electricity cap price curve
Forecast REC prices

A 10 per cent increase/decrease in the unobservable inputs would 
increase/decrease fair value by $256 million (2021: $57 million).

1 Excludes $49 million (June 2021: $47 million) of unlisted equity securities, and associated share warrants, for which management has assessed the investment cost to be a 

reasonable reflection of fair value at reporting date.

Day 1 fair value adjustments
For certain complex financial instruments, such as the structured electricity products, the fair value that is determined at inception of the 
contract using unobservable inputs does not equal the transaction price. When this occurs, the difference is deferred to the statement of 
financial position and recognised in the income statement over the life of the contract in a manner consistent with the valuation methodology 
initially applied.

Reconciliation of net deferred gain

Balance as at 30 June 2021

Prior year restatements

Balance as at 1 July 2021 restated

Value recognised in the income statement

New instruments

Balance as at 30 June 2022

Classification of net deferred gain

Derivative assets

Derivative liabilities

Balance as at 30 June 2022

$m

166

378

544

(75)

15

484

289

195

484

Financial Statements

123

D5 Fair value of financial assets and liabilities (continued)

Financial instruments measured at amortised cost
Except as noted below, the carrying amounts of non-current financial assets and liabilities measured at amortised cost are reasonable 
approximations of their fair values due to their short-term nature.

Liabilities

Bank loans – unsecured

Capital markets borrowings – unsecured

Total1

Fair value 
hierarchy level

2

2

Carrying value

Fair value

2022

2021

2022

2021

$m

$m

$m

$m

508

2,090

2,598

537

2,290

2,827

542

1,874

2,416

575

2,460

3,035

1 Non-current interest-bearing liabilities in the statement of financial position include $2,598 million (June 2021: $2,827 million) as disclosed above, and lease liabilities of 

$476 million (June 2021: $397 million).

The fair value of these financial instruments reflects the present value of expected future cash flows based on market pricing data for the 
relevant underlying interest and foreign exchange rates. Cash flows are discounted at the applicable credit-adjusted market yield.

124

Annual Report 2022

E Taxation

This section provides details of the Group's income tax expense, current tax provision, deferred tax balances and tax accounting policies.

E1 Income tax expense

Income tax

Current tax expense

Adjustments to current tax expense for previous years

Deferred tax expense

Total income tax expense

Reconciliation between tax expense and pre-tax net profit

Loss before income tax

Income tax using the domestic corporation tax rate of 30 per cent (2021: 30 per cent)

Prima facie income tax expense on pre-tax accounting profit:

– at Australian tax rate of 30 per cent

– adjustment for tax exempt charity (Origin Foundation Limited)

Income tax expense/(benefit) on pre-tax accounting profit at standard rates

Increase/(decrease) in income tax expense due to:

Share of results of equity accounted investees

Unfranked distributions received - APLNG

Impairment of carrying value of Energy Market goodwill

Loss on divestment - APLNG equity accounted investment

Net capital gains tax on divestment - APLNG

Deferred tax liability recognition - APLNG

LGC shortfall charge

Other

Under provided in prior years

Total income tax expense

Deferred tax movements recognised directly in other comprehensive income (including foreign 
currency translation)

Financial instruments at fair value

Provisions

Employee benefits

Other items

2022

$m

100

(2)

453

551

20211

$m

59

(7)

261

313

(874)

(1,966)

(262)

2

(260)

(300)

130

659

33

172

39

67

9

809

2

551

886

(10)

-

-

876

(590)

(3)

(593)

(55)

-

201

-

-

669

79

8

902

4

313

190

17

1

(1)

207

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

The Company and its wholly owned Australian resident entities that met the membership requirement formed a tax-consolidated group with 
effect from 1 July 2003. The head entity within the tax-consolidated group is Origin Energy Limited. Tax funding arrangement amounts are 
recognised as inter-entity amounts.

Income tax expense is made up of current tax expense and deferred tax expense. Current tax expense represents the expected tax payable on 
the taxable income for the year, using current tax rates and any adjustment to tax payable in respect of previous years. Deferred tax expense 
reflects the temporary differences between the accounting carrying amount of an asset or liability in the statement of financial position and 
its tax base.

Financial Statements

125

E1 Income tax expense (continued)

Key judgements and estimates

Tax balances: Tax balances reflect a current understanding and interpretation of existing tax laws. Uncertainty arises due to the possibility 
that changes in tax law or other future circumstances can impact the tax balances recognised in the financial statements. Ultimate 
outcomes may vary.

Deferred taxes: The recognition of deferred tax balances requires judgement as to whether it is probable such balances will be utilised 
and/or reversed in the foreseeable future and there will be sufficient future taxable profits against which the benefits can be utilised.

A deferred tax liability is recognised for taxable temporary differences associated with investments in joint ventures unless the Group is 
able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in 
the foreseeable future. During the year, the Group recognised a deferred tax expense of $39 million (2021: $669 million) in respect of the 
investment in APLNG, representing carried forward equity accounted earnings that are expected to be distributed to Origin via dividends 
from APLNG in the foreseeable of future. In determining the forecast distributions from APLNG, the Group’s assessment of future cash 
flows considers a range of macroeconomic and project assumptions, including oil and LNG prices, AUD/USD exchange rates, discount 
rates and costs over the asset's life.

At 30 June 2022, the Group has recognised a deferred tax liability of $708 million. The remaining unbooked balance is not expected 
to reverse in the foreseeable future through the payment of future dividends, through sale or through a capital return. The unrecognised 
portion is disclosed in note E2.

Income tax expense recognised in other comprehensive income

$m

Gross

Tax

Net

Gross

Tax

Net

2022

2021

Actuarial gain on defined benefit 
superannuation plan

Investment valuation changes

Foreign currency translation reserve:

Reclassified to income statement

Translation of foreign operations

Cash flow hedges:

Reclassified to income statement

Effective portion of change in fair value

Other comprehensive income for the year

E2 Deferred tax

1

4

(103)

584

-

(1)

-

14

(443)

3,407

3,450

133

(1,022)

(876)

1

3

(103)

598

(310)

2,385

2,574

4

(8)

-

(623)

130

509

12

(1)

2

-

(16)

(39)

(153)

(207)

3

(6)

-

(639)

91

356

(195)

Deferred tax balances arise when there are temporary differences between accounting carrying amounts and the tax bases of assets and 
liabilities, other than where:

•

•

•

the difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and affects neither 
the accounting profit nor taxable profit or loss;

temporary differences relate to investments in subsidiaries, associates and interests in joint arrangements, to the extent the Group is able 
to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

temporary differences arise on initial recognition of goodwill.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability 
is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can 
be utilised. Deferred tax assets are reduced if it is no longer probable that the related tax benefit will be realised.

126

Annual Report 2022

E2 Deferred tax (continued)

Movement in temporary differences during the year

Asset/(liability)
$m

1 July 20201

Recognised 
in income1

Recognised 
in equity

30 June 
20211

Recognised 
in income

Recognised 
in equity

Acquisition 
of subsidiary

30 June 
2022

Employee benefits

Provisions

Tax value of carry-forward 
tax losses recognised

PP&E

Exploration and 
evaluation assets

Financial instruments at 
fair value

Investment in APLNG

APLNG MRCPS elimination 
(refer to note B2.3)

Business-related costs 
(deductible under 
s.40-880 ITAA97)

ROU assets

Lease liabilities

Intangibles

Other items

79

488

46

(489)

(54)

301

-

49

27

(140)

154

-

2

2

(41)

(45)

274

(13)

236

(669)

(1)

(1)

19

(15)

1

(8)

(1)

(17)

-

-

-

(190)

-

-

-

-

-

-

1

Net deferred tax liabilities

463

(261)

(207)

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

Unrecognised deferred tax assets and liabilities

80

430

1

(215)

(67)

347

(669)

4

(17)

-

36

(13)

(397)

(39)

48

(15)

26

(121)

139

1

(5)

(5)

(20)

(18)

22

1

3

-

10

-

-

-

(886)

-

-

-

-

-

-

-

(453)

(876)

Deferred tax assets have not been recognised in respect of the following items:

Revenue losses - non-Australian

Capital losses

Petroleum resource rent tax, net of income tax

Acquisition transaction costs

Investment in joint ventures1

Intangible assets

Deferred tax liabilities have not been recognised in respect of the following items:

Investment in APLNG2

-

-

-

-

-

-

-

-

-

-

-

(25)

-

(25)

84

423

1

(179)

(80)

(936)

(708)

33

6

(139)

161

(23)

(2)

(1,359)

2022

$m

2021

$m

5

-

119

57

-

8

189

4

223

118

57

67

8

477

(685)

(685)

(810)

(810)

1 There is no longer an unrecognised deferred tax asset in the current year as the relevant joint ventures have been deregistered.

2 The deferred tax liability in respect of the investment in APLNG has not been recognised in full during the year as not all of the temporary difference is expected to reverse 

in the foreseeable future.

Financial Statements

127

F Group structure

The following section provides information on the Group's structure and how this impacts the results of the Group as a whole, including details 
of joint arrangements, associates, controlled entities, transactions with non-controlling interests, and changes made to the Group structure 
during the year.

F1 Controlled entities

The financial statements of the Group include the consolidation of Origin Energy Limited and controlled entities. Controlled entities are the 
following entities controlled by the parent entity (Origin Energy Limited).

Incorporated in

Ownership interest per cent

2022

2021

Origin Energy Limited

Origin Energy Finance Limited

Huddart Parker Pty Limited1

FRL Pty Ltd1

Origin Energy Power Limited1

Origin Energy SWC Limited1

Sun Spot 5 Pty Ltd

Yarrabee Project Co Pty Ltd

Yarrabee One Pty Ltd

Origin Energy Eraring Pty Limited1

Origin Energy Eraring Services Pty Limited1

Origin Energy Upstream Holdings Pty Ltd

Origin Energy B2 Pty Ltd

Origin Energy Browse Pty Ltd

Origin Energy West Pty Ltd

Origin Energy C6 Pty Limited

Origin Energy C5 Pty Limited

Origin Energy Future Fuels Pty Ltd

Origin Energy Upstream Operator Pty Ltd

Origin Energy Holdings Pty Limited1

Origin Energy Retail Limited1

Origin Energy (Vic) Pty Limited1

Gasmart (Vic) Pty Ltd1

Origin Energy (TM) Pty Limited1

Cogent Energy Pty Ltd

Origin Energy Retail No. 1 Pty Limited

Origin Energy Retail No. 2 Pty Limited

Origin Energy Electricity Limited1

Eraring Gentrader Depositor Pty Limited

Sun Retail Pty Ltd1

OE Power Pty Limited1

Origin Energy Uranquinty Power Pty Ltd1

OC Energy Pty Ltd1

Origin Energy Eraring Battery Pty Ltd

Ten Ants Connect Pty Ltd

WINconnect Pty Ltd

Nextgen Utilities Pty Ltd

Carbon Energy Management Technologies Pty Ltd

Carbon R&D Pty Ltd

NSW

Vic

Vic

WA

SA

WA

NSW

Vic

Vic

NSW

NSW

Vic

Vic

Vic

NSW

Vic

Vic

Vic

Vic

Vic

SA

Vic

Vic

Vic

Vic

Vic

Vic

Vic

Vic

Qld

Vic

Vic

Vic

NSW

NSW

Vic

Vic

WA

WA

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

-

-

-

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

-

-

-

-

-

1 Entered into ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 and related Deed of Cross Guarantee with Origin Energy Limited.

128

Annual Report 2022

F1 Controlled entities (continued)

Origin Energy International Holdings Pty Limited

Origin Energy PNG Ltd1

Origin Energy PNG Holdings Limited1

Origin Energy Tasmania Pty Limited2

The Fiji Gas Co Ltd

Origin Energy Contracting Limited2

Origin Energy LPG Limited2

Origin (LGC) (Aust) Pty Limited2

Origin Energy SA Pty Limited2

Hylemit Pty Limited

Origin Energy LPG Retail (NSW) Pty Limited

Origin Energy WA Pty Limited2

Origin Energy Services Limited2

OEL US Inc.

Origin Energy Asset Management Limited2

Origin Energy Pipelines Pty Limited2

Origin Energy Solomons Ltd

Origin Energy Cook Islands Ltd

Origin Energy Vanuatu Ltd

Origin Energy Samoa Ltd

Origin Energy American Samoa Inc

Origin Energy Insurance Singapore Pte Ltd

Angari Pty Limited2

Oil Investments Pty Limited2

Origin Energy Southern Africa Holdings Pty Limited

Origin Energy Vietnam Pty Limited

Origin Energy Singapore Holdings Pte Limited

Origin Energy (Song Hong) Pte Limited

Origin Future Energy Pty Limited

Origin Energy Metering Coordinator Pty Ltd

Origin Energy Resources NZ (Rimu) Limited

Origin Energy VIC Holdings Pty Limited2

OE JV Co Pty Limited2

Origin Energy LNG Holdings Pte Limited

Origin Energy LNG Portfolio Pty Ltd2

Origin Energy Australia Holding BV1

Origin Energy Mt Stuart BV1

OE Mt Stuart General Partnership1

Parbond Pty Limited

Origin Energy Foundation Ltd

Incorporated in

Ownership interest per cent

Vic

PNG

PNG

Tas

Fiji

Qld

NSW

NSW

SA

Vic

NSW

WA

SA

USA

SA

NT

Solomon Islands

Cook Islands

Vanuatu

Western Samoa

American Samoa

Singapore

SA

SA

Qld

Vic

Singapore

Singapore

NSW

NSW

NZ

Vic

Vic

Singapore

Vic

Netherlands

Netherlands

Netherlands

NSW

NSW

2022

100

66.7

2021

100

66.7

100

100

51

100

100

100

100

100

100

100

100

100

100

100

80

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

51

100

100

100

100

100

100

100

100

100

100

100

80

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

1 Controlled entity has a financial reporting period ending 31 December.

2 Entered into ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 and related Deed of Cross Guarantee with Origin Energy Limited.

Financial Statements

129

F1 Controlled entities (continued)

Origin Renewable Energy Investments No 1 Pty Ltd

Origin Renewable Energy Pty Ltd

Origin Energy Geothermal Holdings Pty Ltd

Origin Energy Geothermal Pty Ltd

Origin Energy Chile Holdings Pty Limited

Origin Energy Chile S.A.1

Origin Energy Wind Holdings Pty Ltd

Wind Power Pty Ltd

Origin Energy Hydro Bermuda Limited

1 Controlled entity has a financial reporting period ending 31 December.

Changes in controlled entities

• Ten Ants Connect Pty Ltd was incorporated on 26 October 2021.

• Sun Spot 5 Pty Ltd was acquired on 25 March 2022.

Incorporated in

Ownership interest per cent

2022

2021

Vic

Vic

Vic

Vic

Vic

Chile

Vic

Vic

Bermuda

100

100

100

100

100

-

100

100

100

100

100

100

100

100

100

100

100

100

• WINconnect Pty Ltd, Nextgen Utilities Pty Ltd, Carbon Energy Management Technologies Pty Ltd and Carbon R&D Pty Ltd were acquired 

on 1 April 2022.

• Yarrabee One Pty Ltd and Yarrabee Project Co Pty Ltd were acquired on 28 April 2022.

• Origin Energy Chile S.A. was deregistered on 10 June 2022.

130

Annual Report 2022

F2 Business combinations

Acquisition of WINconnect Pty Ltd

On 1 April 2022 the Group completed the acquisition of 100 per cent of the formerly privately held WINconnect Pty Limited under a 
Share Sale Agreement. The acquisition adds embedded electricity network and serviced hot water customers to Origin's community energy 
services business. Considering the timing of the transaction and the size of the operations, the overall impact of the acquisition to the Group's 
consolidated revenue and profit and loss since the acquisition date, is not significant.

Purchase consideration of $105 million was paid to acquire the net assets on the completion date. Considering the acquired cash balance of 
$13 million the net cash impact from the acquisition was $92 million in the current year.

The purchase consideration of $92 million has been recognised in investing cashflow.

As part of the transaction, Origin has agreed to amendments to its Master Services Agreement (MSA) with Intellihub which has included an 
increase the current meter volume commitment. Origin received a one-off payment of $67 million excluding GST ($74 million inclusive of 
GST) which has been recognised upfront as Other Income.

Purchase consideration

Cash acquired

Acquisition related cashflow

Cash and cash equivalents

Trade and other receivables

PP&E

Customer related intangible assets

Trade and other payables

Deferred tax liability

Fair value of net assets acquired

Purchase consideration

Less fair value of net assets acquired

Goodwill recognised on consolidation

2022

$m

Fair value1

105

(13)

92

13

17

24

77

(26)

(25)

80

105

(80)

25

1

In accordance with the Group's accounting policies, the fair value of assets and liabilities acquired are provisional and will be subject to further review for a period of up to 12 

months from the date of acquisition.

F3 Joint arrangements and investments in associates

Joint arrangements are entities over whose activities the Group has joint control, established by contractual agreement and requiring the 
consent of two or more parties for strategic, financial and operating decisions. The Group classifies its interests in joint arrangements as either 
joint operations or joint ventures, depending on its rights to the assets and obligations for the liabilities of the arrangements.

Associates are entities, other than partnerships, for which the Group exercises significant influence, but no control, over the financial and 
operating policies, and which are not intended for sale in the near future.

Of the Group's interests in joint arrangements and associates, only APLNG and Octopus Energy have a material impact on the Group at 
30 June 2022 (refer to Section B).

Interests in unincorporated joint operations

The Group's interests in unincorporated joint operations are brought to account on a line-by-line basis in the income statement and statement 
of financial position. These interests are held on the following assets whose principal activities are oil and/or gas exploration, development and 
production; power generation; and geothermal power technology:

• Beetaloo Basin

• Browse Basin

• Canning Basin

•

Innamincka Deeps Geothermal

• Cooper-Eromanga Basin

Financial Statements

131

G Other information

This section includes other information to assist in understanding the financial performance and position of the Group, and items required to 
be disclosed to comply with accounting standards and other pronouncements.

G1 Contingent liabilities

Discussed below are items where either it is not probable that the Group will have to make future payments or it is not possible to reliably 
measure the amount of future payments.

Joint arrangements and associates
As a participant in certain joint arrangements, the Group is liable for its share of liabilities incurred by these arrangements. In some 
circumstances, the Group may incur more than its proportionate share of such liabilities, but will have the right to recover the excess liability 
from the other joint arrangement participants.

The Group continues to provide parent company guarantees in excess of its 27.5 per cent shareholding in APLNG, in respect of certain 
historical domestic contracts.

In October 2018, Origin and the other APLNG shareholders agreed to indemnify one of APLNG’s long-term LNG customers (following that 
customer's election to defer delivery of 30 cargoes over six years (2019-24)) should APLNG fail to supply make-up cargoes to that customer 
prior to the expiry of the LNG supply contract. The customer will pay APLNG for the deferred cargoes and APLNG expects to resell the gas to 
other customers, and deliver the deferred cargoes to the long-term LNG customer between 2025 and the end of the LNG supply contract. 
The indemnity was provided severally in accordance with each shareholder’s proportionate shareholding in APLNG. At the inception of the 
agreement, any obligation or liability on the part of the shareholders will only be confirmed by the occurrence or non-occurrence of future 
events, and cannot be measured with sufficient reliability.

The Group has entered into an agreement to provide a financial guarantee to Octopus Energy’s financiers in respect of a working capital 
facility entered into by Octopus Energy. Under this agreement, the Group is required to make a payment to Octopus Energy’s financiers should 
Octopus Energy not make payments under the working capital facility. In return, Octopus Energy is required to pay a monthly fee to the 
Group in respect of the guarantee facility. The guarantee has been accounted for as a Financial Guarantee Contract under AASB 9 Financial 
Instruments and is carried at fair value (refer to note C7) with reference to the guarantee amount in the facility agreement.   

Legal and regulatory
Certain entities within the Group (and joint venture entities, such as APLNG) are subject to various lawsuits and claims as well as audits 
and reviews by government, regulatory bodies or other joint venture partners. In most instances, it is not possible to reasonably predict the 
outcome of these matters or their impact on the Group. Where outcomes can be reasonably predicted, provisions are recorded.

A number of sites owned/operated (or previously owned/operated) by the Group have been identified as potentially contaminated. For sites 
where it is likely that a present obligation exists, and it is probable that an outflow of resource will be required to settle the obligation, such 
costs have been expensed or provided for.

Warranties and indemnities have also been given and/or received by entities in the Group in relation to environmental liabilities for certain 
properties divested and/or acquired.

Capital expenditure
As part of the acquisition of Browse Basin exploration permits in 2015, the Group agreed to pay cash consideration of US$75 million 
contingent upon a project Final Investment Decision (FID), and US$75 million contingent upon first production. The Group will pay further 
contingent consideration of up to US$50 million upon first production if 2P reserves, at the time of the FID, reach certain thresholds. These 
obligations have not been provided for at the reporting date as they are dependent upon uncertain future events not wholly within the 
Group’s control.

Bank guarantees
There are no contingent liabilities arising from bank guarantees held by the Group that are required to be disclosed as at the reporting date, 
as these have either been provided for, or an outflow of economic benefits is considered remote.

The Group's share of guarantees for certain contractual commitments of its joint ventures is shown at note G2.

AEMO administered and suspended market
During the period of administered pricing and market suspension, an administered price cap was imposed.  Generators were entitled to claim 
compensation through the Australian Energy Market Commission for losses incurred as a result of the administered price cap. Origin has 
lodged a notice of its intent to claim direct costs and opportunity costs as a result of the price cap. During the period of administered pricing 
and market suspension, AEMO issued directions to generators to supply electricity as needed. Generators directed on by AEMO during this 
period were entitled to directions compensation.

Compensation to be paid to generators is still in the process of being determined.  AEMO will seek to recover these compensation costs from 
retailers. These compensation payments and costs have not been recognised for at the reporting date as they are still in the process of being 
determined and therefore not wholly within the Group’s control and cannot be measured with sufficient reliability.

132

Annual Report 2022

G2 Commitments

Detailed below are the Group's contractual commitments that are not recognised as liabilities as there is no present obligation.

Capital expenditure commitments

Joint venture commitments1

2022

$m

108

237

2021

$m

107

208

1

Includes $121 million (2021: $135 million) in relation to the Group's share of APLNG’s capital and joint venture commitments.

G3 Share-based payments

This section sets out details of the Group's share-based remuneration arrangements, including details of the Company's Equity Incentive Plan 
and Employee Share Plan (ESP).

The table below shows share-based remuneration expenses that were recognised during the year.

Equity Incentive Plan

Employee Share Plan

Total

2022

$m

29

4

33

2021

$m

24

4

28

Equity Incentive Plan
Eligible employees are granted share-based remuneration under the Origin Energy Limited Equity Incentive Plan. Participation in the plan is at 
the Board’s discretion and no individual has a contractual right to participate or to receive any guaranteed benefits. Equity incentives granted 
prior to FY2018 were offered in the form of Options and/or Share Rights. From FY2019 onwards, equity incentives are granted in the form of 
Share Rights and/or Restricted Shares (RSs). Only RSs carry dividend and voting entitlements. To the extent that Share Rights ultimately vest, 
a dividend equivalent mechanism operates.

(i) Short Term Incentive
Short Term Incentive (STI) includes the award of RSs, which are subject to trading restrictions for a set period of time (generally up to 
two years), after which they become unrestricted, provided that the employee remains employed with satisfactory performance. Once 
unrestricted, the shares are transferred into the employee's name at no cost. The face value of RSs measured at grant date is recognised as 
an employee expense over the related service period. RSs are forfeited if the service and performance conditions are not met.1

(ii) Long Term Incentive
The Long Term Incentive (LTI) awards include the award of Share Rights, which vest subject to performance conditions. Generally half of 
each LTI award is made in the form of Performance Share Rights (PSRs) and is subject to a market hurdle, namely Origin’s Total Shareholder 
Return (TSR) relative to a Reference Group of ASX-listed companies, as identified in the 2022 Remuneration Report. The remaining half of 
each LTI award is made in the form of Restricted Share Rights (RSRs), where vesting is subject to Board assessment with reference to a suite 
of underpinning conditions , as set out in the 2022 Remuneration Report.

The number of awards that may vest are considered separately for PSRs and RSRs. For the PSR awards, which are subject to the relative TSR 
hurdle, vesting only occurs if Origin’s TSR over the performance period ranks higher than the 50th percentile of the Reference Group. Half of 
the PSRs vest if that condition is satisfied. All the PSRs vest if Origin ranks at or above the 75th percentile of the Reference Group. Straight-line 
pro-rata vesting applies in between these two points. The PSR grants made in FY2022 have a performance period of three years. Vesting is 
into RSs with a trading restriction for a further two years (total deferral five years). For the RSR awards, the Board will determine the vesting 
outcome shortly before each of three progressive vesting dates at years three, four and five by reference to a broad range of performance 
indicators. Vesting is into RSs which all have trading restrictions until the end of the fifth year.

Prior to FY2021, the LTI awards include the award of PSRs, such that half of the award is subject to the TSR hurdle, and the remaining half of 
each LTI award is subject to an internal hurdle, namely Return on Capital Employed (ROCE), as set out in the relevant remuneration report.

For awards granted in FY2019 and FY2020 that are subject to the ROCE hurdle, half of the ROCE tranche is allocated to Energy Markets 
and the other half to Integrated Gas. Each tranche will be tested separately and vest separately. Vesting for each tranche only occurs if the 
average actual annual ROCE outcomes over the performance period for the relevant business meets or exceeds the average of the annual 
ROCE targets, which are reflective of delivering WACC for the relevant business. Half of the relevant PSRs will vest if the ROCE target is met. All 
the relevant PSRs will vest if the ROCE target is exceeded by two percentage points or more. Straight-line pro-rata vesting applies in between.

Vested share rights are automatically exercised upon vesting, and there is no exercise price. Upon exercise, a vested award is converted into 
one fully paid ordinary share that is subject to a post-vesting holding lock for a set period (generally up to two years) and carries voting and 
dividend entitlements.

1 The Equity Incentive Plan Rules set out exceptional circumstances, such as death, disability, redundancy or genuine retirement, (‘good leaver’ circumstances) under which 
RSs are released at cessation unless the Board determines otherwise. Prior to FY2018, the equity component of STI was awarded in the form of Deferred Share Rights (DSRs).

Financial Statements

133

G3 Share-based payments (continued)

In relation to Share Rights awarded since FY2021, upon vest, a dividend equivalent amount will be delivered in the form of additional shares 
equal in value (as determined by the Board) to the amount of dividends that would have been paid and re-invested had the participant held 
the underlying shares during the period from the grant date through to the relevant vesting date.

The fair value of the awards granted is recognised as an employee expense, with a corresponding increase in equity, over the vesting period. 
In exceptional circumstances2 , unvested Share Rights may be held ‘on foot’ subject to the specified performance hurdles and other plan 
conditions being met, or dealt with in an appropriate manner determined by the Board.

For PSRs subject to the relative TSR condition, fair value is measured at grant date using a Monte Carlo simulation model that takes into 
account the exercise price, share price at grant date, price volatility, dividend yield, risk-free interest rate for the term of the security, and the 
likelihood of meeting the TSR market condition.

The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future 
trends, which may not necessarily be the actual outcome. The amount recognised as an expense is adjusted to reflect the actual number of 
awards that vest except where due to non-achievement of the TSR market condition. Set out below are the inputs used to determine the fair 
value of the PSRs granted during the year.

For RSRs subject to the underpinning conditions, the initial fair value at grant date is the market value of an Origin share, and the recognised 
expense is trued up at each reporting period to the expected outcome as assessed at that time.

Set out below is a summary of RSRs and PSRs issued during the financial year.

Grant date

Grant date share price

Exercise price

Volatility

Risk-free rate1

RSRs

RSRs

PSRs

PSRs

06 Sep 2021

20 Oct 2021

06 Sep 2021

20 Oct 2021

$4.44

Nil

-

-

$5.14

Nil

-

-

$4.44

Nil

37%

0.15%

$2.46

$5.14

Nil

37%

0.51%

$3.58

Grant date fair value (per award)

$4.44

$5.14

1 Where the risk-free rate is nil, these RSR tranches are subject to a number of underpinning conditions to be assessed by the Board; therefore, the risk-free rate is not relevant 

to their valuation.

Equity Incentive Plan awards outstanding
Set out below is a summary of awards outstanding at the beginning and end of the financial year.

Outstanding at 1 July 2021

Granted

Exercised/released

Forfeited

Outstanding at 30 June 2022

Options

3,105,221

-

-

1,882,339

1,222,882

Weighted
average
exercise
price

PSRs

RSRs

$6.32

5,670,304

-

-

-

1,296,535

397,663

2,236,713

995,169

1,311,963

-

48,834

$7.37

4,332,463

2,258,298

DSRs

45,556

-

45,556

-

-

Exercisable at 30 June 2022

-

-

-

-

-

Outstanding at 1 July 2020

3,259,381

$6.33

Granted

Exercised/released

Forfeited

-

-

154,160

-

-

-

6,243,467

1,044,581

563,432

1,054,312

Outstanding at 30 June 2021

3,105,221

$6.32

5,670,304

Exercisable at 30 June 2021

-

-

-

-

213,038

1,056,609

-

-

167,482

61,440

995,169

-

-

45,556

6,695,155

-

-

The weighted average share price during 2022 was $5.45 (2021: $4.75). The options outstanding at 30 June 2022 have an exercise price of 
$7.37. The options outstanding at 30 June 2022 were tested on 30 June 2022; they did not satisfy the vesting conditions and will lapse on 
22 August 2022 in accordance with the Equity Incentive Plan rules.

For more information on these share plans and performance rights issued to key management personnel, refer to the Remuneration Report.

2 The Equity Incentive Plan Rules provide that Share Rights, and RSs arising from STI arrangements, are forfeited on cessation of employment, except in ‘good leaver’ 

circumstances or unless the Board determines otherwise. The offer terms provide guidance for the exercise of that discretion, specifically that the Share Rights and RSs will 
not normally be forfeited in cases of 'good leavers' (such as those ceasing employment due to death, disability, redundancy or genuine retirement).

RSs

6,695,155

4,929,061

3,156,022

467,068

8,001,126

4,523,573

4,216,362

1,758,548

286,232

134

Annual Report 2022

G3 Share-based payments (continued)

Employee Share Plan
Under the ESP, all eligible employees have a choice of either participating in the $1,000 General Employee Share Plan (GESP) or the Matching 
Share Plan (MSP).

Under the GESP, all employees of the Company who are based in Australia and have been continuously employed as at 1 March of the 
performance year, are granted up to $1,000 of fully paid Origin shares conditional on Board approval. The shares are granted for no 
consideration. Shares awarded under the GESP are purchased on market, registered in the name of the employee, and are restricted for three 
years, or until cessation of employment, whichever occurs first.

Under the MSP, all eligible employees may elect to purchase shares via a salary sacrifice arrangement, which commences on 1 October of the 
performance year. The shares under this plan are allotted quarterly and are subject to a trading restriction for a set period (generally two years) 
or until cessation of employment. The Company matches the purchased shares on a one-for-two basis with allocation of additional Matching 
Rights (MRs) which vest at the same time as the restriction is lifted for the purchased shares. Vesting of MRs is conditional on the employee 
remaining in continuous employment at that time. MRs are forfeited if the service conditions are not met.3

Details of the shares awarded under the GESP during the year are set out below. The cost per share represents the weighted average market 
price of the Company's shares on the grant date.

2022

2021

Grant
date

6 Sep 2021

28 Aug 2020

Shares
granted

813,637

813,637

703,794

703,794

Cost per
share

$4.36

$5.49

Total

Total

Set out below is a summary of MRs outstanding at the beginning and end of the financial year.

Outstanding at 1 July 2021

Granted

Exercised/released

Forfeited

Outstanding at 30 June 2022

Exercisable at 30 June 2022

Total cost
$'000

3,547

3,547

3,864

3,864

MRs

375,895

267,619

219,688

24,926

398,900

-

3 The Equity Incentive Plan Rules provide that Share Rights, and RSs arising from STI arrangements, are forfeited on cessation of employment, except in ‘good leaver’ 

circumstances or unless the Board determines otherwise. The offer terms provide guidance for the exercise of that discretion, specifically that the Share Rights and RSs will 
not normally be forfeited in cases of 'good leavers' (such as those ceasing employment due to death, disability, redundancy or genuine retirement).

Financial Statements

135

G4 Related party disclosures

The Group's interests in equity accounted entities and details of transactions with these entities are set out in notes B1 and B4.

Certain Directors of Origin Energy Limited are also directors of other companies that supply Origin Energy Limited with goods and services or 
acquire goods or services from Origin Energy Limited. Those transactions are approved by management within delegated limits of authority, 
and the Directors do not participate in the decisions to enter into such transactions. If the decision to enter into those transactions should 
require approval of the Board, the Director concerned will not vote upon that decision nor take part in the consideration of it.

G5 Key management personnel

Short-term employee benefits

Post-employment benefits

Other long-term benefits

Share-based payments

Total

2022

$

2021

$

11,222,909

10,344,127

306,469

385,726

5,554,712

289,963

225,909

4,133,424

17,469,816

14,993,423

Loans and other transactions with key management personnel
There were no loans with key management personnel during the year.

Transactions entered into during the year with key management personnel are normal employee, customer or supplier relationships 
and have terms and conditions that are no more favourable than dealings in the same circumstances on an arm’s length basis. These 
transactions include:

•

the receipt of dividends from Origin Energy Limited or participation in the DRP;

• participation in the ESP and Equity Incentive Plan;

•

•

terms and conditions of employment or directorship appointment;

reimbursement of expenses incurred in the normal course of employment; and

• purchases of goods and services.

136

Annual Report 2022

G6 Notes to the statement of cash flows

Cash includes cash on hand, at bank and in short-term deposits, net of outstanding bank overdrafts. The following table reconciles profit to 
net cash provided by operating activities.

Loss for the year

Adjustments for non-cash ITDA

Depreciation and amortisation

Net financing costs

Income tax expense

Non-cash share of ITDA of equity accounted investees

Adjustments for other non-cash items

(Increase)/decrease in fair value of derivatives

(Increase)/decrease in fair value of financial instruments

Unrealised foreign exchange loss/(gain)

Net loss on divestment

Impairment of non-current assets

Loss on sale of assets

Gain on dilution of investment

Impairment losses recognised - trade and other receivables

Non-cash share of EBITDA of equity accounted investees

Exploration expense

Share-based payment expense

Changes in assets and liabilities:

– Receivables

– Inventories

– Payables

– Provisions

– Other

– Futures collateral

Tax (paid)/received

Total adjustments

Net cash from operating activities

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

Reconciliation of movements of liabilities to cash flows arising from financing activities

$m

Balance as at 1 July 2021

Proceeds from borrowings

Repayment of borrowings/other liabilities

Changes to leases

Foreign exchange adjustments and other non-
cash movements

Reclassification

Balance as at 30 June 2022

Liabilities from financing activities

Current
borrowings

Non-current 
borrowings

1,938

-

(1,968)

-

23

264

257

2,827

2,883

(2,896)

-

48

(264)

2,598

Lease
liabilities

463

-

-

72

-

-

535

Other financial 
(assets)/ 
liabilities

(81)

13

112

-

(30)

-

14

2022

$m

20211

$m

(1,425)

(2,279)

449

129

551

1,138

(1,220)

(46)

109

113

2,196

2

(44)

65

541

133

313

956

809

163

(153)

-

1,504

11

-

88

(2,097)

(1,141)

24

29

(1,052)

(68)

1,308

16

(90)

471

(27)

1,956

531

-

24

(398)

50

450

(178)

(70)

110

31

3,243

964

Total

5,147

2,896

(4,752)

72

41

-

3,404

Financial Statements

137

G7 Auditors' remuneration

During the year, the following fees were paid or payable for services provided by the auditor of the parent entity, its related practices and 
non-related audit firms.

Amounts received or due and receivable by the auditor of the Parent Company and any other entity in the 
Group for:

Auditing the statutory financial report of the Parent Company covering the Group

2,225

1,998

2022

$'000

2021

$'000

Auditing the statutory financial reports of any controlled entities

Fees for other assurance and agreed-upon-procedures services under other legislation or 
contractual arrangements

Fees for other services

Tax compliance1

Advisory services2

Sustainability compliance

Total

Amounts received or due and receivable by affiliates of the auditor of the Parent Company for:

Auditing the statutory financial reports of any controlled entities

Total fees to overseas member firms of the Parent 
Company auditor

Total remuneration to Parent Company auditor

Auditing of statutory financial reports of any controlled entities by other auditors

Total auditors' remuneration

73

9

879

-

250

3,436

69

69

3,505

206

3,711

73

9

823

900

141

3,944

69

69

4,013

169

4,182

1 This amount relates to the Group's share of tax compliance work billed. An amount of $879,000 (2021: $800,000) was recharged to APLNG in respect of its share and is 

excluded from this amount.

2 The fees for non-audit services paid to the auditor of the Parent Company (EY) in the prior year predominantly related to a one-off occurrence due to transactional activities 

that took place in FY2020. As part of the acquisition of Octopus Energy and the associated retail transformation process, an external consulting firm was engaged by the 

Group to undertake advisory services in respect of this acquisition. In June 2020, midway through the project, the firm engaged by the Group was acquired by EY. As the 

Group decided it was in the best interest for the project to continue, the audit committee agreed to a one-off approval allowing for continuation of the work, provided the 

time period and fees were limited. This project completed in the prior year and therefore these costs will not reoccur going forward.

138

Annual Report 2022

G8 Master netting or similar agreements

The Group enters into derivative transactions under ISDA master netting agreements. In general, under such agreements the amounts owed 
by each counterparty on a single day in respect of all transactions outstanding in the same currency are aggregated into a net amount payable 
by one party to the other.

Financial assets and liabilities are offset, and the net amount reported in the statement of financial position, where the Group has a legally 
enforceable right to offset recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability 
simultaneously. The Group has also entered into arrangements that do not meet the criteria for offsetting, but still allow for the related amounts 
to be offset in certain circumstances, such as a loan default or the termination of a contract.

The following table presents the recognised financial instruments that are offset, or subject to master netting arrangements but not offset, as at 
the reporting date. The net amount column shows the impact on the Group's statement of financial position if all set-off rights were exercised.

2022

Derivative assets

Derivative liabilities

2021

Derivative assets

Derivative liabilities1

Amount offset in 
the statement of 
financial 
position
$m

Amount
in the statement 
of financial 
position
$m

Related amount
not offset
$m

Gross amount
$m

9,855

(6,940)

1,488

(2,489)

(3,606)

3,606

(353)

353

6,249

(3,334)

1,135

(2,136)

(2,070)

2,070

(867)

867

Net
amount
$m

4,179

(1,264)

268

(1,269)

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

G9 Deed of Cross Guarantee

The parent entity has entered into a Deed of Cross Guarantee through which the Group guarantees the debts of certain controlled entities in 
the event that one of those entities is wound up. The controlled entities that are party to the Deed are shown in note F1.

The following consolidated statement of comprehensive income and retained profits, and statement of financial position, cover the Company 
and its controlled entities that are party to the Deed of Cross Guarantee after eliminating all transactions between parties to the Deed.

for the year ended 30 June

Consolidated statement of comprehensive income and retained profits

Revenue

Other income

Expenses

Share of results of equity accounted investees

Impairment

Net loss on divestment

Interest income

Interest expense

Loss before income tax

Income tax expense

Loss for the year

Other comprehensive income

Total comprehensive income for the year

Retained earnings at the beginning of the year

Dividends paid

Retained earnings at the end of the year

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2022

$m

14,299

19

(13,520)

1,046

(2,196)

(113)

59

(198)

(604)

(615)

(1,219)

-

(1,219)

2,007

(352)

436

20211

$m

11,966

15

(12,747)

227

(1,783)

-

109

(261)

(2,474)

(380)

(2,854)

-

(2,854)

5,257

(396)

2,007

Financial Statements

G9 Deed of Cross Guarantee (continued)

as at 30 June

Statement of financial position

Current assets

Cash and cash equivalents

Trade and other receivables

Inventories

Derivatives

Other financial assets

Income tax receivable

Other assets

Total current assets

Non-current assets

Trade and other receivables

Derivatives

Other financial assets2

Investments accounted for using the equity method

PP&E

Intangible assets

Other assets

Total non-current assets

Total assets

Current liabilities

Trade and other payables

Payables to joint ventures

Interest-bearing liabilities

Derivatives

Other financial liabilities

Provision for income tax

Employee benefits

Provisions

Total current liabilities

Non-current liabilities

Trade and other payables

Interest-bearing liabilities

Derivatives

Deferred tax liabilities

Employee benefits

Provisions

Total non-current liabilities

Total liabilities

Net assets

Equity

Contributed equity

Reserves

Retained earnings

Total equity

1 Certain amounts have been restated to reflect adjustments disclosed in note G11.

2 Includes investment in subsidiaries relating to entities outside the Deed of Cross Guarantee.

139

20211

$m

286

3,304

102

667

491

7

117

4,974

1,537

302

1,074

6,543

3,077

4,641

47

17,221

22,195

2,443

169

72

523

311

1

221

38

3,778

5,314

926

1,291

13

44

1,177

8,765

12,543

9,652

7,138

507

2,007

9,652

2022

$m

481

4,404

170

2,901

732

-

87

8,775

1,909

3,074

93

5,832

3,052

2,419

51

16,430

25,205

3,361

133

87

1,010

688

59

240

373

5,951

3,856

977

1,740

1,394

37

814

8,818

14,769

10,436

6,877

3,123

436

10,436

140

Annual Report 2022

G10 Parent entity disclosures

The following table sets out the results and financial position of the parent entity, Origin Energy Limited.

Origin Energy Limited

Profit/(loss)

Other comprehensive income, net of income tax

Total comprehensive income for the year

Financial position of the parent entity at year end

Current assets

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Contributed equity

Share-based payments reserve

Foreign currency translation reserve

Hedge reserve

Fair value reserve

Retained earnings1

Total equity

2022

2021

$m

$m

505

512

1,017

743

17,418

18,161

4,274

3,421

7,695

6,877

236

664

3

4

2,682

10,466

(1,428)

(657)

(2,085)

271

16,771

17,042

3,364

3,626

6,990

7,138

226

189

(33)

3

2,529

10,052

1 Refer to note A7 for details of dividends provided for or paid of $352 million.

The parent entity has entered into a deed of indemnity for the cross-guarantee of liabilities of a number of controlled entities. Refer to note F1.

G11 Prior year restatements

Changes in accounting policies

Following clarifying guidance from the International Financial Reporting Interpretations Committee (IFRIC), the Group has applied changes 
in accounting policies that require restatement of previously reported amounts.

SaaS

The net intangibles assets of $40 million have been derecognised in the statement of financial position at 30 June 2021 and the associated 
retained earnings amount of $29 million (after tax) has been restated.

The associated amortisation of $9 million (before tax) for the period has been reversed in the income statement as at 30 June 2021.

PPAs

In the year ended 30 June 2021, the Group recognised an impairment of goodwill allocated to the Energy Markets Retail cash generating unit 
(CGU) amounting to $830 million, and the cash flows associated with the renewable PPAs were included in the calculation of the recoverable 
amount for the Retail CGU. This change in the Group’s accounting policy to recognise PPAs as derivatives has resulted in an adjustment of 
$324 million to reverse a portion of the impairment of goodwill recorded at 30 June 2021, relating to the renewable PPAs that were included 
in the recoverable amount.

The net electricity derivative liabilities of $889 million have been recognised as derivatives in the statement of financial position at 30 June 
2021 and the associated retained earnings amount of $298 million (after tax) have been restated.

Other restatements

Certain amounts have been restated to reflect an adjustment to the result of the equity accounted investment in Octopus Energy.

Financial Statements

141

G11 Prior year restatements (continued)

The following tables show the adjustments recognised for each individual line item.

Impact on statement of financial position

Non-current assets

Derivatives

Investments accounted for using the equity method

Intangible assets

Deferred tax assets

Non-current liabilities

Derivatives

Deferred tax liabilities

Net assets

Equity

Retained earnings

Total equity

Impact on income statement

Expenses

Results of equity accounted investees

(Loss)/profit before income tax

Income tax expense

(Loss)/profit for the period

Profit for the period attributable to:

Members of the parent entity

(Loss)/profit for the period

Restatements

Restatements

30 June
2021

PPAs

SaaS Other

Restated
30 June
2021

30 June
2020

Restated
1 July
2020

PPAs

SaaS

$m

$m

$m

$m

$m

$m

$m

$m

$m

366

6,952

4,374

-

506

283

9,815

-

-

324

-

889

(267)

(298)

2,132

9,815

(298)

(298)

-

-

(40)

-

-

(11)

(29)

(29)

(29)

-

366

528

147

(13)

6,939

7,360

4,658

5,420

-

-

-

-

675

7,360

(47)

5,373

-

315

134

13

462

1,395

749

594

5

-

-

-

-

1,343

-

-

-

-

(13)

9,475

12,701

(313)

(34) 12,354

(13)

1,792

4,819

(13)

9,475

12,701

(313)

(313)

(34)

4,472

(34) 12,354

Restatements

Restatements

30 June
2021

PPAs

SaaS Other

Restated
30 June
2021

30 June
2020

Restated
1 July
2020

PPAs

SaaS

$m

$m

$m

$m

$m

$m

$m

$m

$m

(14,048)

(119)

195

-

(1,846)

(119)

(443)

(2,289)

(2,291)

(2,289)

133

14

14

14

9

-

9

(3)

6

6

6

-

(14,158)

(13,418)

(10)

185

(10)

(1,966)

(313)

(10)

(2,279)

(10)

(2,281)

(10)

(2,279)

512

179

(93)

86

83

86

66

-

66

(20)

46

46

46

(11) (13,363)

-

(11)

3

(8)

(8)

(8)

512

234

(110)

124

121

124

Impact on note 
A4 Expenses

Expenses

Depreciation 
and amortisation

Impairment of non-
current assets

Decrease/(increase) in fair 
value of derivatives

Other

Expenses

Restatements

Restatements

30 June
2021

$m

PPAs

$m

SaaS

$m

Restated
30 June
2021

$m

30 June
2020

$m

PPAs

$m

SaaS

$m

550

-

(9)

541

1,828

(324)

366

477

14,048

443

-

119

509

668

(275)

486

-

-

-

1,504

809

477

(9)

14,158

13,418

-

-

(66)

-

(66)

(8)

-

-

19

11

Restated
1 July
2020

$m

501

668

(341)

505

13,363

142

Annual Report 2022

G11 Prior year restatements (continued)

Impact on note A6 basic and diluted earnings per share

Statutory (loss)/profit

Earnings per share based on statutory consolidated profit

Statutory profit/(loss) $m

Basic earnings per share (cents)

Diluted earnings per share (cents)

Underlying profit

Earnings per share based on underlying consolidated profit

Underlying profit $m

Underlying basic earnings per share (cents)

Underlying diluted earnings per share (cents)

Restatements

Restatements

30 June
2021

PPAs

SaaS Other

Restated
30 June
2021

30 June
2020

Restated
1 July
2020

PPAs

SaaS

(2,291)

(130.2)

(130.2)

318

18.0

18.0

14

0.8

0.8

-

0.0

0.0

6

0.3

0.3

6

0.3

0.3

(10)

(2,281)

(0.5)

(129.6)

(0.5)

(129.6)

83

4.7

4.7

(10)

(0.5)

(0.5)

314

17.8

17.8

1,023

58.1

58.0

46

2.7

2.7

-

0.0

0.0

(8)

(0.5)

(0.5)

121

6.9

6.9

(8)

1,015

(0.5)

(0.5)

57.6

57.5

Impact on note D5 Fair 
value of financial assets 
and liabilities

Non-current assets

Economic hedges

Commodity contracts

Total economic hedges

Non-current liabilities

Economic hedges

Commodity contracts

Total economic hedges

Restatements

Restatements

30 June
2021

$m

PPAs

$m

SaaS

$m

Restated
30 June
2021

$m

30 June
2020

$m

PPAs

$m

SaaS

$m

Restated
1 July
2020

$m

201

201

-

-

(342)

(402)

(889)

(889)

-

-

-

-

201

201

258

258

147

147

(1,231)

(1,291)

(173)

(297)

(594)

(594)

-

-

-

-

405

405

(767)

(891)

G12 Subsequent events

Other than the matters described below, no item, transaction or event of a material nature has arisen since 30 June 2022 that would 
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial periods.

Additional investment

On 26 July 2022 Origin announced an additional investment of £94 million (approximately A$163 million) in Octopus Energy Group Limited 
to restore its 20 per cent equity interest.

Dividends

On 18 August 2022, the Directors determined a final dividend of 16.5 cents per share, partially franked to 75 per cent, on ordinary shares. The 
dividend will be paid on 30 September 2022. The financial effect of this dividend has not been brought to account in the financial statements 
for the year ended 30 June 2022 and will be recognised in subsequent financial statements.

Financial Statements

143

Directors’ Declaration

1.

In the opinion of the Directors of Origin Energy Limited (the Company):

a. the consolidated financial statements and notes are in accordance with the Corporations Act 2001 (Cth), including:

i. giving a true and fair view of the financial position of the Group as at 30 June 2022 and of its performance, for the year ended on 

that date; and

ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations 

Regulations 2001 (Cth).

b. the consolidated financial statements also comply with International Financial Reporting Standards as disclosed in the Overview of the 

consolidated financial statements; and

c. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

2. There are reasonable grounds to believe that the Company and the controlled entities identified in note F1 will be able to meet any 

obligations or liabilities to which they are or may become subject to by virtue of the Deed of Cross Guarantee between the Company and 
those controlled entities pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785.

3. The Directors have been given the declarations required by section 295A of the Corporations Act 2001 (Cth) from the Chief Executive 

Officer and the Chief Financial Officer for the financial year ended 30 June 2022.

Signed in accordance with a resolution of the Directors:

Scott Perkins
Chairman Director

Sydney, 18 August 2022

 
144

Annual Report 2022

Independent Auditor’s Report

  Ernst & Young 200 George Street Sydney NSW  2000 Australia GPO Box 2646 Sydney NSW  2001  Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au  Independent Auditor’s Report to the Members of Origin Energy Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of Origin Energy Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated income statement, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2022 and of its consolidated financial performance for the year ended on that date; and b. Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report.    Financial Statements

145

 Carrying Value of the Energy Markets Group of Cash Generating Units (CGUs) Why significant How our audit addressed the key audit matter In accordance with the requirements of Australian Accounting Standards, the Group is required to test all CGUs annually for impairment where goodwill is present.  The Group assesses the recoverable amount of each CGU using a discounted cash flow forecast to determine value in use. As disclosed in Note C8 to the financial statements, as a result of increased forecast wholesale electricity and gas prices, the Group has recognised a $2,196 million impairment charge on its Retail CGU, which form part of the Energy Markets group of CGUs.  Assumptions used in the forecasting of cash flows are highly judgmental and inherently subjective. As disclosed in Note C8, small changes in key assumptions can lead to significant changes in the recoverable amount of these assets.  As a result, we considered the impairment testing of the Energy Markets group of CGUs and the related disclosures in the financial report to be particularly significant to our audit.       Our audit procedures included the following:  • Assessed whether the impairment testing methodology for the Energy Markets group of CGUs used by the Group met the requirements of Australian Accounting Standards. • Assessed the basis for the determination of the Group’s CGUs based on our understanding of the nature of the Group’s business, the interdependence of cash flows, and the economic environment in which it operates. • Tested the mathematical accuracy of the discounted cash flow models. • Assessed the cash flow forecasts with reference to historical budgeting accuracy and current trading performance, historical growth rates, historical operating results, market data and forecasts, ratio analysis, and discussions with management and senior executives. • Where long term supply or sales contracts are in place, agreed the forecast revenue and costs to the contract terms and rates.  • For the Generation CGU within the Energy Markets Group of CGUs, compared the useful lives of assets assumed in the impairment model to the Australian Energy Market Operator (“AEMO”) closure dates. • Involved our energy market modelling specialists to assess the conclusions reached by the Group’s internal specialists in respect of forecast energy prices, forecast generation volumes, forecast capacity prices and marginal loss factors. • Involved our valuation specialists to:  o Assess the discount rates, growth rates and terminal growth rates with reference to publicly available information on comparable companies in the industry and markets in which the Group operates; and  o Perform sensitivity analyses and evaluated whether any reasonably possible changes in assumptions could cause the carrying amount of the cash generating unit to exceed its recoverable amount. • Considered the potential impacts of climate risk on the recoverable amount by analysing the forecast energy price assumptions applied by management, asset useful lives and the possible changes to commodity prices resulting from the transition to a low carbon future.  • Evaluated the adequacy of the related disclosure in the financial report.   146

Annual Report 2022

 Carrying Value of APLNG Equity Accounted Investment  Why significant How our audit addressed the key audit matter At 30 June 2022, the Group’s equity accounted investment in Australia Pacific LNG Pty Limited (APLNG) had a carrying value of $5,821 million. The Group has concluded that no impairment or impairment reversal was required.  As disclosed in Note B2.3, the carrying amount of the Group's equity accounted investment in APLNG is reviewed at each reporting date to determine whether there is any indicators of impairment or impairment reversal. Where an indicator of impairment or impairment reversal exists, a formal estimate of the recoverable amount is made. Oil price is a significant assumption used in this assessment and is inherently subjective.  In times of economic uncertainty, including the current political and energy supply uncertainty which results from the Ukraine war, the degree of subjectivity in determining forecast pricing is higher than it might otherwise be.  Changes in this assumption can lead to significant changes in the recoverable amount.  Due to the significance of this investment relative to total assets and the inherent complexity in forecasting commodity prices and future market outlooks, we considered the carrying value of this investment to be a key audit matter. In fulfilling our responsibilities as Group auditor, we considered the work performed by the EY Component Auditor responsible for auditing APLNG.  This included: • Sending instructions to the EY Component Auditor detailing the scope to be covered for the purposes of our audit of the Group.  This included the risk associated with impairment or impairment reversal. • The Component Auditor confirmed compliance with the instructions provided and reported the results of their procedures to us.  • To ensure sufficient oversight, we, as the Group audit team: o Held frequent meetings with the Component Auditor to discuss the outcome and extent of their procedures.  o Reviewed underlying working papers and documentation of the Component Auditor for selected areas of audit focus. In addition, we undertook the following additional procedures with the assistance of our valuation’s experts: • Considered whether information existed that was contrary to the EY Component auditor’s conclusion in respect of the existence of impairment or impairment reversal for APLNG at 30 June 2022 and may represent objective evidence of a significant or prolonged change in value of the investment, including: o Compared current period results from APLNG to prior period impairment modelling. o Considered changes to market conditions during the period including changes and volatility in key macro-economic assumptions such as oil price and gas price with reference to broker and analyst data and publicly available peer company information. o Evaluated possible changes to the APLNG discount rate with reference to external market data including government bond rates and comparable company data. o Considered the impact of climate risk on the asset life and key macro-economic assumptions. o Undertook sensitivity analysis for reasonably possible changes in key assumptions which included price sensitivity analysis using scenarios developed by the International Energy Agency. • Considered available market information including trading and reserve multiples as a cross check of the carrying value of the Group’s equity accounted investment.    • Assessed the climate related disclosures in respect of APLNG for accuracy and consistency with other publicly disclosed information. Financial Statements

147

 Unbilled Revenue Why significant How our audit addressed the key audit matter At 30 June 2022, the Group recognised unbilled revenue net of an allowance for impairment of $2,107 million as disclosed in Note C1.  Unbilled revenue represents the value of energy supplied to customers between the date of the last meter read and the reporting date where no bill has been issued to the customer at the end of the reporting period. The estimation of unbilled revenue is considered a key audit matter due to the complex estimation process and significant audit effort required to address the estimation uncertainty. Key factors that require consideration impacting the complex estimation process include: • Estimation of customer demand which is impacted by weather and an individual customer’s circumstances. • Application of different customer rates across different regulated and unregulated markets. • Changes in energy consumption patterns compared to the same period in the prior year, particularly due to the ongoing impacts of COVID-19 and wholesale energy price volatility.   The Group’s disclosures in respect of the unbilled revenue estimation process are included in Note C1 of the financial report.  Our audit procedures included the following:  • Assessed whether the methodology used to recognise unbilled revenue met the requirements of Australian Accounting Standards.  • Assessed the effectiveness of the Group’s controls governing energy purchased, energy sold and the customer pricing process. • Evaluated the unbilled revenue calculation by: o With the assistance of specialists, assessing the calculation methodology and mathematical accuracy. o Comparing inputs used in the calculation to supporting data such as historical temperature data and volume data provided by the Australian Energy Market Operator (AEMO). o Compared the prices applied to customer consumption with historical and current data.  o Reviewed the Group’s reconciliation of volumes acquired from AEMO against volumes sold and volumes purchased as used by the Group in their analysis. o Compared the accuracy of the unbilled revenue accrual by comparing the historical accrual to final billing data and performing a trend analysis of the accrual year on year. o Tested the accuracy of the unbilled revenue accrual for business customers by comparing the unbilled revenue accrual to subsequent invoices.  • Evaluated the adequacy of the related disclosures in the financial report including those made with respect to judgements and estimates Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information comprises the information included in the Company’s 2022 annual report, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.  In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.   148

Annual Report 2022

 Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.  As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: ► Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ► Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.  ► Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. ► Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.  ► Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. Financial Statements

149

 ► Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated to the directors, we determine those matters that were of most significance in the audit of the financial report of the current year and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Audit of the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2022. In our opinion, the Remuneration Report of Origin Energy Limited for the year ended 30 June 2022, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.   Ernst & Young     Andrew Price Partner Sydney 18 August 2022 150

Annual Report 2022

Share and Shareholder 
Information

The information set out below was applicable as at 29 July 2022.

Corporate Governance Statement

The Company’s Corporate Governance Statement can be found on its website at originenergy.com.au/governance

Substantial shareholders

As at 29 July 2022, the Company received notice of two substantial holders: 

Shareholder

AustralianSuper Pty Ltd

Vanguard Group

Date notice
received

1 July 2022

28 April 2022

Number of 
shares in notice

218,137,581

88,061,736

Percentage of 
capital in notice

12.66%

5.00007%

Number of equity securities holders and voting rights

As at 29 July 2022 there were:

•

•

138,184 holders of 1,722,747,671 ordinary shares in the Company;

15 holders of 1,222,882 Options, 61 holders of 4,332,463 Performance Share Rights, 60 holders of 2,258,298 Restricted Share Rights; and

• 712 holders of 396,315 Matching Share Rights.

Only ordinary shares of the Company are quoted. Only holders of ordinary shares are entitled to attend and vote at a meeting of members.

Voting rights of members

At a meeting of members, each member who is entitled to attend and vote may attend and vote in person or by proxy, attorney or 
representative. On a show of hands, every person present who is a member, proxy, attorney or representative, shall have one vote; and on a 
poll, every member who is present in person or by proxy, attorney or representative shall have one vote for each fully paid ordinary share held. 
No other equity securities hold voting rights.

Analysis of holdings

Fully paid ordinary shares

Holdings ranges

Holders

Total shares

1-1,000

1,001-5,000

5,001-10,000

10,001-100,000

59,701

56,210

13,414

8,628

25,388,736

136,083,626

95,424,251

178,549,435

100,001-999,999,999

231

1,287,301,623

%

1.470

7.900

5.540

10.360

74.720

Totals

138,184

1,722,747,671

100.000

Options

Holdings ranges

Holders

Total options

1-1,000

1,001-5,000

5,001-10,000

10,001-100,000

100,001-999,999,999

Totals

0

0

0

14

1

15

0

0

0

821,594

401,288

1,222,882

100.000

%

0.000

0.000

0.000

67.190

32.810

Share and Shareholder Information

Performance share rights

Restricted Share rights

Matching Share Plan matched rights

151

%

0.000

0.000

0.350

45.310

54.340

100.000

%

0.000

0.000

0.940

50.930

48.130

100.000

Holdings ranges

Holders

Total rights

1-1,000

1,001-5,000

5,001-10,000

10,001-100,000

100,001-999,999,999

Totals

0

0

2

51

8

61

0

0

15,252

1,963,127

2,354,084

4,332,463

Holdings ranges

Holders

Total rights

1-1,000

1,001-5,000

5,001-10,000

10,001-100,000

100,001-999,999,999

Totals

0

0

3

51

6

60

0

0

21,180

1,150,242

1,086,876

2,258,298

Holdings ranges

Holders

Total rights

%

1-1,000

712

396,315

100.000

1,001-5,000

5,001-10,000

10,001-100,000

100,001-999,999,999

0

0

0

0

0

0

0

0

0.000

0.000

0.000

0.000

Totals

712

396,315

100.000

Unmarketable parcels

7,612 shareholders held less than a marketable parcel as at 29 July 2022.

Top 20 holdings

Shareholder

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

J P MORGAN NOMINEES AUSTRALIA PTY LIMITED

CITICORP NOMINEES PTY LIMITED

NATIONAL NOMINEES LIMITED

BNP PARIBAS NOMS PTY LTD 

MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED

ARGO INVESTMENTS LIMITED

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 

BNP PARIBAS NOMINEES PTY LTD 

CERTANE CT PTY LTD 

CITICORP NOMINEES PTY LIMITED 

NETWEALTH INVESTMENTS LIMITED 

CERTANE CT PTY LTD 

BNP PARIBAS NOMS PTY LTD 

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA

BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD 

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2

MUTUAL TRUST PTY LTD

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

NEWECONOMY COM AU NOMINEES PTY LIMITED <900 ACCOUNT>

Number of shares

% of Issued shares

440,271,158

437,906,585

141,870,327

68,203,964

41,301,426

27,318,193

11,351,603

9,707,307

9,119,774

8,766,570

6,965,196

6,140,797

5,923,371

4,189,056

2,939,491

2,855,269

2,255,426

2,218,988

1,881,258

1,828,570

25.56%

25.42%

8.24%

3.96%

2.40%

1.59%

0.66%

0.56%

0.53%

0.51%

0.40%

0.36%

0.34%

0.24%

0.17%

0.17%

0.13%

0.13%

0.11%

0.11%

152

Annual Report 2022

Securities exchange listing

Origin shares are traded on the AustralianSecurities Exchange Limited (ASX). The symbol under which Origin shares are traded is ‘ORG’.

Escrowed securities

There are no securities subject to voluntary escrow as at the date of this Report.

On-market buy-back

There is no current on-market buy-back of Origin shares. During FY2022, the company undertook an on-market buy-back between 1 April 
2022 and 23 June 2022.

On-market purchases for employee equity plans

During the reporting period, 5,900,000 Origin shares were purchased on-market for the purpose of Origin’s employee incentive plans. The 
average price per share purchased was $6.12.

Shareholder enquiries

For information about your shareholding, to notify a change of address, to make changes to your dividend payment instructions or for 
any other shareholder enquiries, you should contact Origin Energy’s share registry, Boardroom Pty Ltd on 1300 664 446. Please note that 
broker-sponsored holders are required to contact their broker to amend their address.

When contacting the share registry, shareholders should quote their security holder reference number, which can be found on the holding 
or dividend statements.

Shareholders with internet access can update and obtain information regarding their shareholding online at www.originenergy. com.au/
about/investors-media

Tax File Number

For resident shareholders who have not provided the share registry with their Tax File Number (TFN) or exemption category details, tax at the 
top marginal tax rate (plus Medicare levy) will be deducted from dividends to the extent they are not fully franked. For those

shareholders who have not provided their TFN or exemption category details, forms are available from the share registry. Shareholders are not 
obliged to provide this information if they do not wish to do so.

Information on Origin

The main source of information for shareholders is the Annual Report. The Annual Report will be provided to shareholders on request and 
free of charge. Shareholders not wishing to receive the Annual Report should advise the share registry in writing so that their names can be 
removed from the mailing list. Origin’s website (www.originenergy.com.au) is another source of information for shareholders.

154

Annual Report 2022

Exploration and 
Production Permits 
and Data

Origin permitAPLNG permitProduction facilityPipelinePipelineOrigin Energy InterestsOther (Non Origin)155

*

*

*

Exploration and Production Permits and Data

1 Origin's Australian interests

Origin held interests in the following permits at 30 June 2022.

Basin/Project Area

Interest

Basin/Project Area

Interest

Basin/Project Area

Interest

Queensland (continued)

Queensland (continued)

Combabula/Reedy Creek/Peat and 
Taroom East

Kenya/Kenya East/Bellevue and Anya

Queensland

Surat-Bowen basins

Angry Jungle

ATP 631; PLs 281 and 282

4.9765375% 1

Carinya and Ramyard

ATP 972; PL 469, 470 
and 471

25.50%

* 1

ATP 973

27.5%

* 1

ATP 2047

ATP 606; PLs 297, 403, 
404, 405, 406, 407, 408, 
412 and 413; PL(A) 444

PL 101

PPL 178

Condabri

13.75%

25.50%

27.5%

27.5%

1

* 1

* 1

* 1

PLs 265, 266, 267, 1011, 
1018 and 1084

PPLs 177, 185, 186, 2000 
and 2059

27.50%

* 1

27.50%

* 1

Denison Trough

ATP 1191; PLs 1082 and 
1083 (Mahalo block deeps)

13.75%

1

1

13.75%

ATP 1191; PLs 450, 451, 
457, 1012; PL(A) 1062

PLs 43, 44, 45, 183 and 
218 (Deeps)

Fairview and Arcadia

ATPs 745; PLs 420, 421 
and 440

PL 1059

ATPs 2012; 90, 91, 92, 99, 
100, 232, 233, 234, 235, 
236 and 1017

Gladstone LNG

PFL 20

PPLs 162 and 163

Ironbark

ATP 788; PL(A) 1106 
(Deeps)

ATP 788; PL(A) 1106 
(Shallows)

27.50%

27.50%

1

* 1

6.88%

* 1

27.50%

* 1

8.078125% 1

8.59375% 1

8.59375% 1

8.59375% 1

PL 247

PFL 19

PL 1025

PLs 257, 273, 274, 275, 
278, 279, 442, 466, 474 
and 503 (Shallows)

PLs 179, 180, 228, 229 
and 263

PPLs 107, 176, 2014 
and 2063

Membrance and Lonesome

ATP 804

PLs 219 and 220

8.057017% 1

27.50%

* 1

Spring Gully

ATP 592; PLs 195, 268, 414, 
415, 416, 417, 418 and 419

25.99%

* 1

Cooper-Eromanga basins

ATPs 736, 737, 738, 2025 
and 2026

75.00%

99.00%

100%

100%

*

PLs 1094, 1095, 1096, 
1097, 1098, 1099, 1100, 
1101, 1102, 1103 and 1104

ATP 784

Boree North

EPM 27973

Northern Territory

Beetaloo Basin

EP 76, 98 and 117

77.50%

*

Western Australia

11.171875% 1

Browse Basin

11.171875% 1

TR/7, TR/8, WA-90-R, 
WA-91-R, WA-92-R

40.00%

Canning Basin

EP 129, 391, 428, 431 
and 436

50.00%

EP 457 & EP 458

40.00%

South Australia

Geothermal

GRL 3

30.00%

Notes:
* Operatorship
1 Interest held through 27.5 per cent 
ownership of Australian Pacific LNG 
Joint Venture

13.75%

* 1

PL 200

PL 204

26.32%

27.42%

PPL 143, 180 and 2026

27.50%

* 1

* 1

* 1

6.558623%

6.55875% 1

6.580664% 1

Talinga and Orana

PLs 215, 216, 225, 226 
and 272

PFL 26

PPLs 171, 181 and 2032

27.50%

* 1

27.50%

27.50%

* 1

* 1

156

Annual Report 2022

Annual 
Reserves Report

For the year ended 30 June 2022

1 Reserves and resources

This Annual Reserves Report provides an update on the reserves and resources of Origin Energy Limited (Origin) and its share of Australia 
Pacific LNG Pty Limited (APLNG), as at 30 June 2022.

1.1 Highlights

APLNG (Origin 27.5 per cent share)

• Origin share reduced from 37.5 to 27.5 per cent during the financial year.

• Updated reservoir modelling to reflect strong field performance and step-out data, primarily in Combabula, resulted in an overall 1161 

per cent 2P (proved plus probable) reserves replacement in operated and non-operated areas during FY2022. A detailed breakdown of 
movements in Origin’s share of APLNG 2P reserves is as follows:

– 240 PJ (7 per cent) upward revision of operated 2P reserves before production driven by updated reservoir models reflecting strong 

field performance and new data insights;

– 37 PJ (6 per cent) increase in non-operated 2P reserves before production; and

– (220) PJ of production.

• Excluding divestment of Origin equity in APLNG, 2P reserves replacement of 99 per cent has been achieved in operated fields over the 
last five years, primarily driven by strong performance in producing fields, along with continued maturation of contingent areas shown to 
be feasible for development through appraisal activities.

• Developed 2P reserves accounted for 60 per cent of total 2P reserves as at 30 June 2022.

• Origin’s share of 1P (proved) reserves has continued to grow, with an increase of 7 per cent or 197 PJ before production due to strong 
performance in producing fields. 1P reserves represent 59 per cent of total 3P (proved plus probable plus possible) reserves as at 
30 June 2022.

1.2 2P reserves (Origin share)

2P reserves decreased by 1,104 PJ after divestment, revisions and production to a total of 3,148 PJ, compared to 30 June 2021.

Origin 2P reserves by area

(PJ)

Operated Assets

– Asset East

– Asset West

Non-Operated Assets

Total 2P

2P
30/06/2021

Acquisition/
divestment

New booking/
discovery

Revisions/
extensions

Production

2P
30/06/2022

3,587

1,463

2,124

665

4,252

(984)

(390)

(594)

(177)

(1,161)

-

-

-

-

-

240

110

130

37

277

(170)

(86)

(84)

(50)

(220)

2,673

1,097

1,576

475

3,148

• Summary of 2P reserves movement - key changes include:

– 220 PJ decrease due to production;

– 1,161 PJ decrease due to divestment, largely related to Origin’s equity decrease from 37.5% to 27.5% (-1,134 PJ) but also including 

APLNG’s divestment of the Woleebee and Mahalo fields (-27 PJ);

– 240 PJ positive revision across all operated areas, reflecting;

– Updated reservoir models reflecting strong field performance and new step-out data acquisition resulting in an increase in estimated 

recovery, notably from Combabula-Reedy Creek area this year.

– 37 PJ increase in non-operated areas.

• As at 30 June 2022, developed 2P reserves represented 60 per cent of total 2P reserves.

• As at 30 June 2022, 100 per cent of Origin’s share of 2P reserves are unconventional gas located in the Surat and Bowen Basins.

1 At 100% APLNG project level including impact of Woleebee asset sale and Mahalo divestment

Annual Reserves Report

157

Origin 2P reserves by development type

(PJ)

Operated Assets

– Asset East

– Asset West

Non-Operated Assets

Total 2P

Developed

Undeveloped

30-6-2021

Developed

Undeveloped

30-6-2022

Total 2P

Total 2P

2,173

1,031

1,142

393

2,566

1,414

432

982

273

1,686

3,587

1,463

2,124

665

4,252

1,637

793

844

267

1,903

1,036

304

732

208

1,245

2,673

1,097

1,576

475

3,148

1.3 1P reserves (Origin share)

1P reserves increased by 197 PJ or 7 per cent before production and decreased by 757 PJ after divestment and production to 1,998 PJ, 
compared to 30 June 2021.

As at 30 June 2022, developed 1P reserves represented 91 per cent of total 1P reserves. The remaining 9 per cent of 1P reserves represents 
wells that have been spudded but not connected or planned wells that are immediately adjacent to drilled wells. 100 per cent of 1P reserves 
are unconventional gas located in the Surat and Bowen Basins.

Origin 1P reserves by area

(PJ)

Operated Assets

– Asset East

– Asset West

Non-Operated Assets

Total 1P

Origin 1P reserves by development type

1P
30/06/2021

Acquisition/
divestment

New booking/
discovery

Revisions/
extensions

Production

1P
30/06/2022

2,203

1,124

1,079

553

2,755

(588)

(300)

(288)

(147)

(735)

-

-

-

-

-

179

53

126

18

197

(170)

(86)

(84)

(50)

(220)

1,624

791

833

373

1,998

(PJ)

Operated Assets

– Asset East

– Asset West

Non-Operated Assets

Total 1P

Developed

Undeveloped

30-6-2021

Developed

Undeveloped

30-6-2022

Total 1P

Total 1P

2,046

1,020

1,026

383

2,428

157

104

53

170

327

2,203

1,124

1,079

553

2,755

1,557

765

792

260

1,817

68

26

42

113

181

1,624

791

833

373

1,998

1.4 2C contingent resources for Origin Energy

Beetaloo Basin
A material contingent resource announcement of 6.6 Tscf (gross) or 2.3 Tscf (net) for the Beetaloo Basin was provided on 15 February 2017 
to the ASX:
https://www.asx.com.au/asxpdf/20170215/pdf/43g0qhh87j71bb.pdf

Origin increased its interest in the Beetaloo Joint Venture to 70 per cent in May 2017 by acquiring Sasol’s 35 per cent share:
https://www.asx.com.au/asxpdf/20170505/pdf/43j1ss71xqbxtc.pdf

During FY2020 Origin further increased its interest in the Beetaloo Joint Venture to 77.5 per cent by acquiring 7.5 per cent of the interest 
owned by Falcon Oil and Gas:
https://www.asx.com.au/asxpdf/20200407/pdf/44gs08yfdwfrjp.pdf

Refer to the Operating and Financial Review, released on the same date as this report, for details of the current status of the Beetaloo 
Basin asset.

158

Annual Report 2022

Appendix A: APLNG reserves and resources

Origin, as APLNG upstream operator, has prepared estimates of the reserves and resources held by APLNG for operated assets detailed in 
this report.

Netherland, Sewell & Associates, Inc. (NSAI) has prepared a consolidated report of the reserves and resources held by APLNG for 
non-operated assets. The reserves and resources estimates for the non-operated properties in their report have been independently estimated 
by NSAI.

The tables below provide 1P, 2P and 3P reserves and 2C resources for APLNG (100 per cent) and Origin’s 27.5 per cent interest in these APLNG 
(operated and non-operated) reserves and resources.

Reserves and resources held by APLNG (100 per cent share)

Reserves/resource classification

30/06/2021

Acquisition/
divestment

New booking/
discovery

Revisions/
extensions

Production

30/06/2022

1P (proven)

2P (proven plus probable)

3P (proven plus probable plus possible)

2C (best estimate contingent resource)

7,348

11,339

12,204

3,602

-

(100)

(151)

(115)

-

-

-

-

610

901

1,048

196

(693)

(693)

(693)

-

7,265

11,448

12,408

3,683

Reserves and resources held by Origin (27.5 per cent in APLNG)

Reserves/resource classification

30/06/2021

Acquisition/
divestment

New booking/
discovery

Revisions/
extensions

Production

30/06/2022

1P (proven)

2P (proven plus probable)

3P (proven plus probable plus possible)

2C (best estimate contingent resource)

2,755

4,252

4,576

1,351

(735)

(1,161)

(1,262)

(392)

-

-

-

-

197

277

317

54

(220)

(220)

(220)

-

1,998

3,148

3,412

1,013

See details above for movements in 1P and 2P reserves.

The 1,048 PJ increase in APLNG (100 per cent share) 3P reserves, excluding production and divestment is due to improved understanding 
of field behaviour, coupled with strong field performance which has resulted in an increase in estimated recovery from producing areas.

Annual Reserves Report

159

Appendix B: Notes 
relating to this report

for downstream transport and processing. 
This price is exposed to changes in the 
supply/demand balance in the market 
through oil price-linked LNG contracts.

a. Methodology regarding reserves 

c. Reversionary rights

and resources

The Reserves Report has been prepared 
to be consistent with the Petroleum 
Resources Management System (PRMS) 
2018 published by the Society of 
Petroleum Engineers (SPE). This document 
may be downloaded from the SPE 
website: https://www.spe.org/en/industry/
reserves/. Additionally, this Reserves Report 
has been prepared to be consistent with 
the ASX reporting guidelines. For all assets, 
Origin reports reserves and resources 
consistent with SPE guidelines as follows: 
proved reserves (1P); proved plus probable 
reserves (2P); proved plus probable plus 
possible reserves (3P) and best estimate 
contingent resource (2C). Reserves must 
be discovered, recoverable, commercial 
and remaining.

The CSG reserves and resources held 
within APLNG’s properties have either 
been independently prepared by NSAI 
or prepared by Origin. The reserves and 
resources estimates contained in this report 
have been prepared in accordance with 
the standards, definitions and guidelines 
contained within the PRMS and generally 
accepted petroleum engineering and 
evaluation principles as set out in the SPE 
Reserves Auditing Standards.

Origin does not intend to report prospective 
or undiscovered resources as defined by 
the SPE in any of its areas of interest on an 
ongoing basis.

b. Economic test for reserves

The assessment of reserves requires a 
commercial test to establish that reserves 
can be economically recovered. Within 
the commercial test, operating cost and 
capital cost estimates are combined with 
fiscal regimes and product pricing to 
confirm the economic viability of producing 
the reserves.

Gas reserves are assessed against existing 
contractual arrangements and local market 
conditions, as appropriate. In the case 
of gas reserves where contracts are not 
in place, a forward price scenario based 
on monetisation of the reserves through 
domestic markets has been used, including 
power generation opportunities, direct 
sales to LNG and other end users, and 
utilisation of Origin’s wholesale and retail 
channels to market.

For CSG reserves that are intended to 
supply the APLNG CSG to LNG project, 
the economic test is based on a weighted 
average price across domestic, spot and 
LNG contracts, less short run marginal costs 

e. Rounding

Information on reserves is quoted in this 
report rounded to the nearest whole 
number. Some totals in tables in this report 
may not add due to rounding. Items that 
round to zero are represented by the 
number 0, while items that are actually zero 
are represented with a dash "-".

f. Abbreviations

bbl

Tscf

CSG

kbbls

barrel

trillion standard cubic feet

coal seam gas

kilo barrels = 1,000 barrels

ktonnes

kilo tonnes = 1,000 tonnes

mmboe million barrels of oil equivalent

PJ

PJe

petajoule = 1 x 1015 joules

petajoule equivalent

g. Conversion factors for PJe

CSG

1.038 PJ/Bscf

The CSG interests that APLNG acquired 
from Tri-Star in 2002 are subject to 
reversionary rights. If triggered, these 
rights will require APLNG to transfer 
back to Tri-Star a 45 per cent interest 
in those CSG interests for no additional 
consideration. Origin has assessed the 
potential impact of these reversionary 
rights, based on economic tests consistent 
with the reserves and resources referable 
to the CSG interests, and based on 
that assessment does not consider that 
the existence of these reversionary rights 
impacts the reserves and resources quoted 
in this report. Tri-Star has commenced 
proceedings against APLNG claiming that 
reversion has occurred. APLNG denies that 
reversion has occurred and is defending 
the claim.2

d. Information regarding the preparation 

of this Reserves Report

h. Reference point

The CSG reserves and resources held 
within APLNG’s properties have either 
been independently prepared by NSAI or 
by Origin. All assessments are based on 
technical, commercial and operational data 
provided by Origin on behalf of APLNG.

The statements in this Report relating to 
reserves and resources as at 30 June 
2022 for APLNG’s interests in non-operated 
assets are based on information in the NSAI 
report dated 29 July 2022. The data has 
been compiled by Mr John Hattner, a full-
time employee of NSAI. Mr Hattner has 
consented to the statements based on this 
information, and to the form and context in 
which these statements appear.

The statements in this Report relating to 
reserves and resources for other assets are 
based on, and fairly represent, information 
and supporting documentation prepared 
by, or under the supervision of qualified 
petroleum reserves and resource evaluators 
who are employees of Origin.

This Reserves Statement as a whole 
has been approved by Ms Petrina 
Weatherstone CPEng NER MIEAust who is 
a full-time employee of Origin. Ms Petrina 
Weatherstone is Chief Reservoir Engineer, a 
qualified petroleum reserves and resources 
evaluator and a member of the Society 
of Petroleum Engineers, has consented 
to the form and context in which these 
statements appear.

Reference points for Origin’s petroleum 
reserves and contingent resources are 
defined points within Origin’s operations 
where normal exploration and production 
business ceases, and quantities of the 
produced product are measured under 
defined conditions prior to custody transfer. 
Fuel, flare and vent consumed to the 
reference points are excluded.

i. Preparing and aggregating 

petroleum resources

Petroleum reserves and contingent 
resources are typically prepared by 
deterministic methods with support from 
probabilistic methods. Petroleum reserves 
and contingent resources are aggregated 
by arithmetic summation by category and 
as a result, proved reserves may be a 
conservative estimate due to the portfolio 
effects of the arithmetic summation. Proved 
plus probable plus possible may be an 
optimistic estimate due to the same 
aforementioned reasons.

j. Methodology and internal controls

The reserves estimates undergo an 
assurance process to ensure that they 
are technically reasonable given the 
available data and have been prepared 
according to our reserves and resources 
process, which includes adherence to the 
PRMS Guidelines. The assurance process 
includes peer reviews of the technical 
and commercial assumptions. The annual 
reserves report is reviewed by management 
with the appropriate technical expertise, 
including the Resource Assessment Lead 
and Integrated Gas General Managers.

2 Refer to Section 7 of the Operating and Financial Review released to the ASX on 18 August 2022 for further information.

160

Annual Report 2022

Five-year
Financial History

A reconcilation between statutory and underlying profit measures can be found in note A1 of the Origin Consolidated Financial Statements.

Income statement ($m)

Total external revenue

Underlying:

EBITDA3

Depreciation and amortisation expense

Share of interest, tax, depreciation and amortisation 
of equity accounted investees4

EBIT

Net financing costs

Income tax benefit/(expense)

Non-controlling interests

Segment result and underlying consolidated profit

Impact of items excluded from segment result and 
underlying consolidated profit net of tax

Statutory:

Profit/(loss) attributable to members of the 
parent entity

Statement of financial position ($m)

Total assets

Net debt/(cash)

Shareholders' equity - members/parent 
entity interest

Adjusted net debt/(cash)5

Shareholders' equity - total

Cash flow

Key ratios

Statutory basic earnings per share (cents)

Underlying basic earnings per share (cents)

Total dividend per share (cents)6

Net debt to net debt plus equity (adjusted) (%)5

Underlying EBITDA by segment ($m)

Energy Markets7

Integrated Gas

Corporate

General Information

Number of employees

20221

20211,2

20201,2

20191

20181

14,461

12,097

13,157

14,727

14,883

2,114

(449)

(1,138)

527

(126)

10

(4)

407

2,036

(541)

(956)

539

(133)

(90)

(2)

314

(1,836)

(2,595)

3,122

(501)

(1,303)

1,318

(126)

(174)

(3)

1,015

(894)

3,232

(419)

(1,504)

1,308

(154)

(123)

(3)

1,028

183

3,217

(381)

(1,194)

1,642

(278)

(339)

(3)

1,022

(804)

(1,429)

(2,281)

121

1,211

218

24,020

2,818

9,997

2,838

10,022

21,308

4,786

9,455

4,639

9,475

(81.5)

23.2

29.0

22

365

1,837

(88)

(129.6)

17.8

20.0

33

979

1,135

(78)

25,340

5,688

12,333

5,158

12,354

1,813

6.9

57.6

25.0

29

1,450

1,741

(69)

25,743

6,084

13,129

5,417

13,149

24,257

7,289

11,804

6,496

11,828

1,914

2,645

68.8

58.4

25.0

29

1,574

1,892

(234)

12.4

58.2

-

36

1,811

1,521

(115)

Net cash from operating and investing activities - 
total operations ($m)

3,363

1,183

Weighted average number of shares

1,753,612,216

1,759,555,663

1,759,801,186

1,758,935,655

1,757,442,268

5,174

4,979

5,232

5,360

5,565

Five-year Financial History

161

Integrated Gas8

2P reserves (PJe)

Product sales volumes (PJe)

Liquified Natural Gas (Kt)

Natural gas and ethane (PJ)

Production volumes (PJe)

Energy Markets

Generation (MW) - owned

Generation dispatched (TWh)

Number of customers ('000)

Electricity

Natural gas

LPG

Broadband

Other11

Electricity (TWh)

Natural gas (PJ)

LPG (Kt)

20221

20211,2

20201,2

20191

20181

3,148

211

2,868

52

220

6,052

15

4,458

2,733

1,277

368

61

20

35

188

357

4,252

246

3,370

59

263

6,047

16

4,266

2,625

1,249

359

33

34

193

389

4,268

251

3,258

70

265

6,029

18

4,236

2,631

1,220

36510

20

34

204

417

4,599

254

3,257

73

255

6,029

20

4,2009

2,639

1,191

362

8

36

222

426

4,799

255

3,213

77

254

5,981

21

4,181

2,666

1,145

370

-

38

214

450

1

Includes discontinued operations and assets held for sale unless stated otherwise.

2 Following clarifying guidance from the International Financial Reporting Interpretations Committee, the Group has applied changes in accounting policies that require 

restatement of previously reported amounts. Refer to note G11 Prior year restatements, in the Consolidated Financial Statements.

3 Since FY2019 this includes premiums relating to certain electricity hedges within Underlying profit. The equivalent amount in FY2018 has not been restated in the above table. 

Had the amount been adjusted, the impact to underyling EBITDA would have been $(160) million.

4 Origin discloses its equity accounted results in two lines: 'share of EBITDA of equity accounted investees,' included in EBITDA; and 'share of interest, tax, depreciation and 

amortisation of equity accounted investees,' included between EBITDA and EBIT.

5 Total current and non-current interest-bearing liabilities only, less cash and cash equivalents excluding APLNG related cash, less fair value adjustments on hedged borrowings.

6 Dividends represent the interim and final dividends determined for each FY. This includes the final dividend for FY22 determined on 18 August 2022 to be paid on 

30 September 2022. The amounts paid within each FY are 20c, 22.5c, 30c ,10c and 0c respectively.

7 Since FY2019 this includes premiums relating to certain electricity hedges within Underlying profit. The equivalent amount in FY2018 has not been restated in the above table. 

Had the amount been adjusted, the impact to underlying EBITDA would have been $(160) million.

8 FY2018 excludes Lattice Energy (continuing operations basis shown).

9 Total number of customers restated to include Broadband customers

10 June 2020 LPG customer accounts restated to include ~2,500 Asia Pacific customer accounts

11 Largely relates to Origin Home Assist customers.

162

Annual Report 2022

Glossary 
and Interpretation

Glossary

Statutory financial measures

Statutory financial measures are measures included in the Financial 
Statements for the Origin Consolidated Group, which are measured 
and disclosed in accordance with applicable Australian Accounting 
Standards. Statutory financial measures also include measures that 
have been directly calculated from, or disaggregated directly from 
financial information included in the Financial Statements for the 
Origin Consolidated Group.

Term

Meaning

Cash flows from 
investing activities

Statutory cash flows from investing activities as 
disclosed in the Statement of Cash Flows in the 
Origin Consolidated Financial Statements.

Cash flows from 
operating activities

Statutory cash flows from operating activities as 
disclosed in the Statement of Cash Flows in the 
Origin Consolidated Financial Statements.

Cash flows used in 
financing activities

Statutory cash flows used in financing activities as 
disclosed in the Statement of Cash Flows in the 
Origin Consolidated Financial Statements.

Net Debt

Non-
controlling interest

Statutory 
Profit/Loss

Statutory earnings 
per share

Total current and non-current interest-bearing 
liabilities only, less cash and cash equivalents 
excluding cash to fund APLNG day-to-
day operations.

Economic interest in a controlled entity of 
the consolidated entity that is not held by 
the Parent entity or a controlled entity of the 
consolidated entity.

Net profit/loss after tax and non-controlling 
interests as disclosed in the Income Statement 
in the Origin Consolidated Financial Statements.

Statutory Profit/Loss divided by weighted 
average number of shares as disclosed in the 
Income Statement in the Origin Consolidated 
Financial Statements.

Non-IFRS financial measures

Non-IFRS financial measures are defined as financial measures that 
are presented other than in accordance with all relevant Accounting 
Standards. Non-IFRS financial measures are used internally by 
management to assess the performance of Origin’s business, and to 
make decisions on allocation of resources. The Non-IFRS financial 
measures have been derived from Statutory financial measures 
included in the Origin Consolidated Financial Statements, and are 
provided in this report, along with the Statutory financial measures 
to enable further insight and a different perspective into the financial 
performance, including profit and loss and cash flow outcomes, of 
the Origin business.

The principal Non-IFRS profit and loss measure of Underlying Profit 
has been reconciled to Statutory Profit in Section . The key Non-IFRS 
financial measures included in this report are defined below.

Term

AASB

Adjusted 
Net Debt

Adjusted 
Underlying 
EBITDA

Average 
interest rate

Meaning

Australian Accounting Standards Board

Net Debt adjusted to remove fair value adjustments 
on hedged borrowings

Origin Underlying EBITDA – Share of APLNG 
Underlying EBITDA + net cash from APLNG over the 
relevant 12 month period.

Interest expense divided by Origin’s average drawn 
debt during the period.

cps

Cents per share.

Free Cash Flow Net cash from operating and investing activities 

(excluding major growth projects), less interest paid.

FY22 
(Current period)

FY21 
(Prior period)

Gearing

Twelve months ended 30 June 2022.

Twelve months ended 30 June 2021.

Adjusted Net Debt / (Adjusted Net Debt + 
Total equity)

Gross Profit

Revenue less cost of goods sold.

Items excluded 
from Underlying 
Profit (IEUP)

Items that do not align with the manner in which 
the Chief Executive Officer reviews the financial and 
operating performance of the business which are 
excluded from Underlying Profit. See Section 5.1 
for details.

MRCPS

Mandatorily Redeemable Cumulative 
Preference Shares.

Non-cash fair 
value uplift

Reflects the impact of the accounting uplift in 
the asset base of APLNG which was recorded on 
creation of APLNG and subsequent share issues 
to Sinopec. This balance will be depreciated in 
APLNG’s Income Statement on an ongoing basis 
and, therefore, a dilution adjustment is made to 
remove this depreciation.

Share of ITDA

Origin’s share of equity accounted interest, tax, 
depreciation and amortisation.

Total Segment 
Revenue

Total revenue for the Energy Markets, Integrated Gas 
and Corporate segments, as disclosed in note A1 of 
the Origin Consolidated Financial Statements.

Underlying EPS Underlying Profit/Loss divided by weighted average 

number of shares.

Underlying 
EBITDA

Underlying earnings before underlying interest, 
underlying tax, underlying depreciation and 
amortisation (EBITDA) as disclosed in note A1 of the 
Origin Consolidated Financial Statements.

Glossary and Interpretation

163

Term

SME

TRIFR

TW

TWh

VDO

Watt

Meaning

Small Medium Enterprise

Total Recordable Incident Frequency Rate

Terawatt = 1012 watts

Terawatt hour = 109 kilowatt hours

Victorian Default Offer

A measure of power when a one ampere of current 
flows under one volt of pressure.

Interpretation

All comparable results reflect a comparison between the current 
period and the prior period, unless otherwise stated.

A reference to APLNG or Australia Pacific LNG is a reference to 
Australia Pacific LNG Pty Limited in which Origin holds a 27.5 per 
cent shareholding. A reference to Octopus Energy or Octopus is a 
reference to Octopus Energy Group Limited in which Origin holds an 
18.7% shareholding as at 30 June 2022, with subsequent investment 
to restore its 20% shareholding in FY2023. Origin’s shareholding in 
APLNG and Octopus Energy is equity accounted.

A reference to $ is a reference to Australian dollars unless specifically 
marked otherwise.

All references to debt are a reference to interest bearing debt only.

Individual items and totals are rounded to the nearest appropriate 
number or decimal. Some totals may not add due to rounding of 
individual components.

When calculating a percentage change, a positive or negative 
percentage change denotes the mathematical movement in 
the underlying metric, rather than a positive or a detrimental 
impact. Percentage changes on measures for which the numbers 
change from negative to positive, or vice versa, are labelled as 
not applicable.

Term

Meaning

Underlying 
share of ITDA

Underlying 
Profit/Loss

Underlying 
ROCE (Return 
on Capital 
Employed)

Share of interest, tax, depreciation and amortisation 
of equity accounted investees adjusted for items 
excluded from Underlying Profit.

Underlying net profit/loss after tax and non-
controlling interests as disclosed in note A1 of the 
Origin Consolidated Financial Statements.

Calculated as Adjusted EBIT / Average 
Capital Employed.

Average Capital Employed = Shareholders Equity 
+ Origin Debt + Origin’s Share of APLNG project 
finance - Non-cash fair value uplift + net derivative 
liabilities. The average is a simple average of opening 
and closing in any 12 month period.

Adjusted EBIT = Origin Underlying EBIT and 
Origin’s share of APLNG Underlying EBIT + Dilution 
Adjustment = Statutory Origin EBIT adjusted to 
remove the following items: a) Items excluded from 
underlying earnings; b) Origin’s share of APLNG 
underlying interest and tax; and c) the depreciation of 
the Non-cash fair value uplift adjustment. In contrast, 
for remuneration purposes Origin’s statutory EBIT 
is adjusted to remove Origin’s share of APLNG 
statutory interest and tax (which is included in 
Origin’s reported EBIT) and certain items excluded 
from underlying earnings. Gains and losses on 
disposals and impairments will only be excluded 
subject to Board discretion.

Non-financial terms

Term

Boe

CES

C&I

DMO

ERP

GJ

JCC

Joule

Kansai

kT

Mtpa

MW

MWh

NEM

NPS

PJ

PJe

PPA

Sinopec

Meaning

Barrel of oil equivalent

Community Energy Services

Commercial and Industrial

Default Market Offer

Enterprise resource planning

Gigajoule = 109 joules

Japan Customs-cleared Crude (JCC) is the average 
price of crude oil imported to Japan. APLNG’s long-
term LNG sales contracts are priced based on the 
JCC index.

Primary measure of energy in the metric system.

When referring to the off-taker under the LNG Sale 
and Purchase Agreement (SPA) with APLNG, means 
Kansai Electric Power Co. Inc.

kilo tonnes = 1,000 tonnes

Million tonnes per annum

Megawatt = 106 watts

Megawatt hour = 103 kilowatt hours

National Electricity Market

Net Promoter Score (NPS) is a measure of 
customers’ propensity to recommend Origin to 
friends and family

Petajoule = 1015 joules

Petajoules equivalent = an energy measurement 
used to represent the equivalent energy in different 
products so the amount of energy contained in these 
products can be compared.

Power Purchase Agreement

When referring to the off-taker under the LNG Sale 
and Purchase Agreement (SPA) with APLNG, means 
China Petroleum & Chemical Corporation which has 
appointed its subsidiary Unipec Asia Co. Ltd. to act 
on its behalf under the LNG SPA.

164

Annual Report 2022

This page has been intentionally left blankDirectoryRegistered OfficeLevel 32, Tower 1100 Barangaroo AvenueBarangaroo, NSW 2000GPO Box 5376Sydney NSW 2001T (02) 8345 5000F (02) 9252 9244originenergy.com.auenquiry@originenergy.com.auSecretaryHelen HardyShare RegistryBoardroom Pty LimitedLevel 12, 225 George StreetSydney NSW 2000GPO Box 3993Sydney NSW 2001T Australia 1300 664 446T International (+61 2) 8016 2896F (02) 9279 0664boardroomlimited.com.au origin@boardroomlimited.com.auAuditorEYFurther information about Origin’s performance can be found on our website:originenergy.com.au