Origin Energy has left investors on edge after reporting a loss for full-year 2022 and failing to provide profit guidance for the year ahead.
The gas and electricity company on Thursday reported a statutory loss of $1.429 billion for the year ended June 30, after writing off $2.196 billion associated with the hedging of high wholesale prices.
Shares in Origin fell 6.9 per cent, or 42 cents, to $5.65 in late morning trade, reflecting the company's uncertainty about 2023.
Origin CEO Frank Calabria said the "almost unparalleled year" for energy market conditions saw the underlying profit rise 30 per cent to $407 million in FY22 as gas and coal prices soared.
But solid gains from high gas prices were offset by squeezed margins on electricity generation.
Supply-chain woes during the year caused Origin's Eraring, Australia's largest power station, to run out of coal and be forced to buy more expensive fuel when supplier Centennial let them down.
"We've now locked in contracts for 4.4 million tonnes of coal supply - the majority of our needs for FY2023," Mr Calabria said.
Quizzed during a call with investors, Origin disclosed Eraring was no longer reliant on Centennial and would talk to all Hunter coal producers over longer-term supply.
In June, Origin withdrew 2023 guidance for Energy Markets EBITDA (underlying earnings before interest, taxes, depreciation, and amortisation) of $600 million to $850 million, and refused to endorse that range.
"The trajectory over the next few years is up," Mr Calabria said. "I didn't expect that reaction today in the share price."
He said highlights in FY22 included a strong performance in natural gas, growth in total customer accounts, and recent improvements in coal supply.
The risk of coal under-delivery remains, including due to rail and mine performance, the company warned.
Origin pledged to provide an update when there is less uncertainty.
Analysts expect extreme volatility in energy market prices over the next three to five years, and higher power bills for homes and businesses.
Origin said it expected "upward momentum", particularly as there was usually an 18-month to three-year lag on tariffs.
A record cash distribution from Australia Pacific LNG of $1.595 billion, on higher oil and spot LNG prices, led to a strong free cash flow position of $1.062 billion.
Origin anticipates further growth in underlying earnings in 2024.
But that remains dependent on fuel and energy prices and the extent to which these are reflected in customer tariffs, the outcome of a price review on gas supply, and delivery of targeted retail savings.
Origin said it was committed to developing more gas and is in the process of tendering for the solar project to be built on the Eraring site.
Mr Calabria said the acute tightening of gas and electricity supply in the June quarter, and escalating wholesale prices, highlighted the "urgent need" for action.
The extreme electricity prices showed the importance of gas and renewables in filling the supply gap, but the infrastructure needed to build out the new system would take time, he warned.
"We need to get on with it," he said.
"We need to be able to sustain existing system reliability and at the same time accelerate the transition to the new lower-emissions system."
Origin will take a Climate Transition Action Plan to its AGM on October 19 and plans to announce a new emissions-reduction target it says will be "consistent" with the global push to limit warming to 1.5C.
A final dividend of 16.5 cents per share was declared, for a total dividend of 29 cents per share.
