Full Year 2026 Origin Energy Ltd Earnings Call

August 12, 2026

Speaker #1: Okay, good morning, everyone, and welcome to Origin Energy's results for the 2026 financial year. It's Frank Calabria here, and I'm joined by my executive leadership team.

Frank Calabria: Okay. Good morning, everyone, and welcome to Origin Energy's results for the 2026 financial year. It is Frank Calabria here, and I am joined by my executive leadership team. I want to welcome a few people. Firstly, you will all know Andrew Thornton, but welcome him in his new role of Executive General Manager, Energy Supply and Operations. We welcome Aleta Nicoll as the Executive General Manager for Integrated Gas, and also welcome Alicia Purtell, our new Executive General Manager of People and Culture. I will provide a brief overview of performance and outlooks. Tony Lucas will speak to the financial results, and this will be followed by an opportunity for all of you to ask questions. Turning to slide 2. Origin Energy delivered a good result for the 2026 financial year. The Energy Markets EBITDA of AUD 1,701 million is towards the upper end of guidance.

Frank Calabria: Okay. Good morning, everyone, and welcome to Origin Energy's Results for the 2026 Financial year. It is Frank Calabria here, and I am joined by my executive leadership team. I want to welcome a few people. Firstly, you will all know Andrew Thornton, but welcome him in his new role of Executive General Manager, Energy Supply and Operations. We welcome Aleta Nicoll as the Executive General Manager for Integrated Gas, and also welcome Alicia Purtell, our new Executive General Manager of People and Culture. I will provide a brief overview of performance and outlooks. Tony Lucas will speak to the financial results, and this will be followed by an opportunity for all of you to ask questions. Turning to slide 2. Origin Energy delivered a good result for the 2026 financial year. The Energy Markets EBITDA of AUD 1,701 million is towards the upper end of guidance.

Speaker #1: I want to welcome a few people. Firstly, you'll all know Andrew Thornton, but welcome him in his new role of executive general manager and energy supply and operations.

Speaker #1: We welcome Alida Nickell as the energy general manager for Integrated Gas, and also welcome Alicia Purteau, our new executive general manager of People and Culture.

Speaker #1: I'll provide a brief overview of performance and outlooks. Tony will speak to the financial results and this week, followed by an opportunity for all of you to ask questions.

Speaker #1: Turning to slide 2, Origin's delivered a good result for the 2026 financial year. The energy markets EBITDA are of 1.701 million EBITDA, is towards the upper end of guidance.

Speaker #1: Integrated Gas at 1.26, 1.62 million a billion EBITDA is in line with expectations for APL and GNL and G trading. And in relation to Octopus Energy and Kraken, it recorded a combined EBITDA of minus 8 million with the UK retail contributing 134 million, and that's enabled funding, investment, and growth as they scaled.

Frank Calabria: Integrated Gas at AUD 1.62 billion EBITDA is in line with expectations for APLNG and LNG trading. In relation to Octopus Energy and Kraken, it recorded a combined EBITDA of minus AUD 8 million, with UK Retail contributing AUD 134 million, and that has enabled funding investment in growth as they scale in the non-UK retail markets, energy services, and also Kraken migrations. There are a number of business highlights for the year. Customer accounts increased by 243,000. We achieved our AUD 100 million to AUD 150 million cost-out target. The batteries are on time and budget, and we now have 1.3 GW operational. Origin Energy received AUD 911 million fully franked dividends from APLNG and increased its 2P reserves at 100% there by 332 petajoules, and that is before production.

Speaker #1: And the non-UK retail markets energy services and also Kraken migrations. There are a number of business highlights for the year. Customer accounts increased by 243,000.

Speaker #1: We achieved our 100 million to 150 million cost out target. The batteries are on time, and budget, and we now have 1.3 gigawatts operational.

Speaker #1: Origin received 911 million dollars fully frank dividends from APL and G, and increased its 2P reserves at 100%. They're by 332 petajoules, and that's before production.

Speaker #1: The Octopus Energy team have grown their customer accounts by 2.2 million, 800,000 of those in the UK, but now 1.4 million of them are outside the UK.

Frank Calabria: The Octopus Energy team have grown their customer accounts by 2.2 million, 800,000 of those in the UK, but now 1.4 million of them are outside the UK. Kraken increased its revenue by 19% through the year and now has contracted accounts at 95 million at the end of June. The Kraken and Octopus Energy legal separation is complete, and as part of that, the equity raise of AUD 1 billion by Kraken was completed in July. On the back of that, the board have determined a AUD 0.30 fully franked interim dividend, and that is obviously supported by strong cash flow and balance sheet strength. Turning to the financial highlights. You can see there that the statutory profit is AUD 1.574 billion, the underlying profit is AUD 1.159 billion, and the underlying EBITDA of AUD 3.22 billion, which comprises improvements in Energy Markets and Octopus Energy and the expected lower earnings in Integrated Gas.

Speaker #1: Kraken increased its revenue by 19% through the year, and now has contracted accounts at 95 million at the end of June. The Kraken and Octopus legal separation is complete, and as part of that, the equity raise of a billion dollars by Kraken was completed in July.

Speaker #1: On the back of that, the board have determined a 30 cent fully franked interim dividend, and that's obviously supported by strong cash flow and balance sheet strength.

Speaker #1: Turning to the financial highlights, you can see there that the statutory profit is 1.574 billion. The underlying profit is 1.159 billion. And the underlying EBITDA are 3.22 billion.

Speaker #1: Which comprises improvements in energy markets and Octopus Energy and the expected lower earnings in Integrated Gas. The adjusted free cash flow was very strong.

Frank Calabria: The adjusted free cash flow was very strong. It increased by over AUD 700 million to be in excess of AUD 2 billion for the year. That strong cash flow has led to a reduction in our net debt to EBITDA metric, which now sits at 1.6x. I mentioned the final dividend, that takes the full-year dividends for the year consistent with 2025 to be AUD 0.60 fully franked. I wanted to touch on the data security incident. In July, we advised there had been an unauthorized access to customer information to 900,000 customers. Our priority right now is supporting those affected customers. Initial notifications have gone out. We are continuing to communicate with them. We are providing support through extended customer support hours, a dedicated contact number, webpage, and access to specialist identity and cyber support services. We have taken steps to secure our systems. We have been working with cybersecurity and forensic specialists.

Speaker #1: It increased by over 700 million to be 700 million to be in excess of 2 billion dollars for the year. That strong cash flow has led to a reduction in our net debt to EBITDA metric, which now sits at 1.6 times.

Speaker #1: And I mentioned the final dividend, that takes the full year dividends for the year consistent with 2025 to be 60 cents fully franked. I wanted to touch on the data security incident in July.

Speaker #1: We advised there'd been an unauthorized access to customer information to 900,000 customers. Priority right now is supporting those affected customers. Initial notifications have gone out.

Speaker #1: We're continuing to communicate with them. We're providing support through extended customer support hours, dedicated contact number, web page, and access to specialist identity and cyber support services.

Speaker #1: We've taken steps to secure our systems. We've been working with cyber security and forensic specialists. We continue our review, continue to work closely with the authorities and regulators and, as I commented, when I last spoke to this, the matter does remain subject to an ongoing criminal investigation, which does will limit some of the things I can say today.

Frank Calabria: We continue our review, continue to work closely with the authorities and regulators. As I commented when I last spoke to this, the matter does remain subject to an ongoing criminal investigation, which will limit some of the things I can say today, but I understand there will be some interest in that. Turning to our purpose on slide 5, of getting energy right for our customers, communities, and planet, and firstly for customers, our focus right now is on supporting those impacted by the data security incident. I am pleased that we were able to pass through our lower average prices in July for the 2027 financial year. We continue to support customers in hardship, spending AUD 40 million, and we have new energy plans being introduced that are tailored to customer usage patterns. We remain one of the largest East Coast gas suppliers through APLNG.

Speaker #1: But I understand there'll be some interest in that. Turning to our purpose on the next slide 5 of getting energy right for our customers' communities and planet and firstly for customers our focus right now is on supporting those impacted by the data security incident.

Speaker #1: I'm pleased that we were able to pass through a lower average prices in July for the 2027 financial year. We continue to support customers in hardship, spending 40 million dollars.

Speaker #1: And we have new energy plans being introduced that are tailored to customer usage patterns and we remain one of the largest East Coast gas suppliers through APL and G.

Speaker #1: For the communities, it's good to see that we continue to support regional procurement and First Nations suppliers in a meaningful way. And also, community benefits through our RAR and community fund and our foundation, where we contribute both dollars and also volunteer hours by our employees.

Frank Calabria: For the communities, it is good to see that we continue to support regional procurement and First Nations suppliers in a meaningful way, and also community benefits through our Eraring Community Fund and our foundation, where we contribute both dollars and also volunteer hours by our employees. It continues to be a key part for what Origin stands for. I am also pleased to advise that our recordable injury frequency rate of 2.9 is an improvement on last year. When it comes to planet, our Scope 1 to 3 equity emissions are down 2%, and included in that is a reduction of our Scope 1 emissions by 7%. Our batteries, it is good to see both Supernode 2 and Mortlake are now operational, and that is earlier than anticipated. Also pleased to see that the ash reuse at Eraring has jumped to 77%, up from 61% last year.

Speaker #1: It continues to be a key part for what Origin stands for. I'm also pleased to advise that our recordable injury frequency rate at 2.9 is an improvement on last year.

Speaker #1: When it comes to planet, our scope 1 to 3 equity emissions are down 2% and included in that is a reduction of our scope 1 emissions by 7%.

Speaker #1: Our batteries it's good to see both supernode 2 and Mortlake in our operational and that's earlier than anticipated. Also pleased to see that the ash reuse at our RARing has jumped to 77% up from 61% last year.

Speaker #1: And we continue to apply 85% of the produced water at APL and G to a beneficial use, including agriculture. And we now have 50 megawatts of community batteries under operation.

Frank Calabria: We continue to apply 85% of the produced water at APLNG to a beneficial use, including agriculture. We now have 50 megawatts of community batteries under operation. Turning to slide 6. We have established assets and capabilities that we continue to build on, but differentiate us. They span customer, energy supply, energy resource, international markets through Octopus, and also global technology through Kraken. That is something we continue to focus on as we want to deliver the best outcomes through the energy transition. Our investment proposition on slide 7 remains consistent. We have Energy Markets and APLNG, both leading Australian energy businesses generating strong cash flows, fully franked dividends, and an ability to continue to invest in the energy transition, and our dividend yield is 5.7% before franking benefit.

Speaker #1: Turning to slide 6, we have established assets and capabilities that we continue to build on, but differentiate us. They span customer energy supply, energy resource, international markets through Octopus and also global technology through Kraken.

Speaker #1: And that's something we continue to focus on as we want to deliver the best outcomes through the energy transition. Our investment proposition on slide 7 remains consistent.

Speaker #1: We have energy markets and APL and G both leading Australian energy businesses generating strong cash flows, fully frank dividends, and an ability to continue to invest in the energy transition.

Speaker #1: And our dividend yield is 5.7% before franking benefit. In addition to that, we now have significant global growth potential through two independent businesses following separation.

Frank Calabria: In addition to that, we now have significant global growth potential through two independent businesses following separation, Octopus and Kraken. I wanted to turn just to the commodity markets, because they have shifted significantly so far in 2026, and that is highlighted by the charts on slide 8. Recent electricity prices have been impacted by both cyclical and structural drivers. We have seen unseasonably mild weather, very high base load availability, and also increased renewables and battery storage. At the same time, what we are seeing is the cost of new build is rising, and that just makes it more challenging to invest at these prices. In relation to East Coast gas prices, while there has been a rise in global LNG prices, you can see the East Coast remains well-supplied and has been insulated from those rises.

Speaker #1: Octopus and Kraken. I wanted to turn just to the commodity markets because they have shifted significantly so far in 2026, and that's highlighted by the charts on slide 8.

Speaker #1: Recent electricity prices have been impacted by both cyclical and structural drivers. We've seen unseasonably mild weather, very high baseload availability, and also increased renewables and battery storage.

Speaker #1: And at the same time, what we're seeing is the cost of new build is rising, and that just makes it more challenging to invest at these prices.

Speaker #1: In the relation to East Coast gas prices, while there's been a rise in global LNG prices, you can see the East Coast remains well supplied and has been insulated from those rises.

Speaker #1: And we've seen the domestic demand be lower over the last 12 months. Particularly in relates to gas fire generation and the demand from LNG producers.

Frank Calabria: We have seen the domestic demand be lower over the last 12 months, particularly in relation to gas-fired generation and the demand from LNG producers. We also include the Japanese customs-cleared crude and for people, as most will be familiar, that is the index that actually flows through to our long-term LNG export contracts. It has obviously risen sharply since the commencement of the Middle East crisis, you can see on the right-hand chart. But given the time lag that exists in our LNG export contracts, those higher oil prices will be realized in the 2027 financial year. Based on the current forward prices, Origin expects continued strong cash flows from APLNG in FY 2027, and there will be some losses from the oil hedges in place that will partially offset this.

Speaker #1: Now, we also include the Japanese customs cleared crude and for people most will be familiar. That's the index that actually flows through to our long-term LNG export contracts.

Speaker #1: It's obviously risen sharply since the commencement of the middle East crisis. You can see on the right-hand chart. But given the time lag that exists in our LNG export contracts, those higher oil prices will be realized in the 2027 financial year.

Speaker #1: And based on the current Ford prices, Origin expects continued strong cash flows from APL and G in FY27. And there will be some losses from the oil hedges in place that will partially offset this.

Speaker #1: And then just a reminder, we've communicated this previously as part of our quarterly presentation, but it's a significant event. The separation of Octopus and Kraken has now been completed.

Frank Calabria: Just a reminder, we have communicated this previously as part of our quarterly presentation, but it is a significant event. The separation of Octopus and Kraken has now been completed. You can see there, the stake in Origin economically in both of those businesses remains at 22.7%. The graphic on the left, though, is to highlight the fact that Octopus holds a 13.7% stake in Kraken when you are calculating that. Both of those businesses are well-positioned to pursue ambitious growth, and it was pleasing that Kraken was able to raise that USD 1 billion equity, and that was completed in July at a look-through valuation of US$8.65 billion. We will talk more about those businesses later. On that note, I am going to hand over to Tony Lucas to talk through the financial review.

Speaker #1: You can see there the stake in Origin economically in both of those businesses remains at 22.7%. The graphic on the left, though, is to highlight the fact that Octopus holds a 13.7% stake in Kraken.

Speaker #1: When you calculate that. Those both of those businesses are well positioned to pursue ambitious growth. And it was pleasing that Kraken was able to raise that 1 billion dollar equity and that was completed in July at a look through valuation of US dollars 8.65 billion.

Speaker #1: We'll talk more about those businesses later. So on that note, I'm going to hand over to Tony Lucas to talk through the financial review.

Speaker #2: Thank you, Frank. Tony Lucas here, CFO of Origin. Good morning, everyone, and thank you for joining. I'll spend the next few minutes on the segment results, our cash generation, and then our balance sheet.

Tony Lucas: Thank you, Frank. Tony Lucas here, CFO of Origin. Good morning, everyone, and thank you for joining. I will spend the next few minutes on the segment results, our cash generation, and then our balance sheet. Today's strong result reflects three consistent themes. Firstly, we delivered what we said we would on earnings, on cost, and on the battery program. Second, we had strong cash conversion, and we strengthened an already strong balance sheet. Finally, we kept investing in the portfolio through the energy transition for what it needs while maintaining disciplined, sustainable returns to shareholders. Starting with the EBITDA. Group EBITDA of AUD 3.2 billion reflects strong growth in Energy Markets and an improved contribution from Octopus. As expected, a reduction from Integrated Gas. Energy Markets EBITDA of AUD 1.7 billion was up 21%, and at the upper end of guidance.

Speaker #2: Today's strong result reflects three consistent themes. Firstly, we delivered what we said we would on earnings, on cost, and on the battery program. Second, we had strong cash conversion.

Speaker #2: And we strengthened an already strong balance sheet. And finally, we kept investing in the portfolio through the energy transition for what it needs, while maintaining disciplined sustainable returns to shareholders.

Speaker #2: So starting with the EBITDA, group EBITDA of 3.2 billion reflects strong growth in energy markets and an improved contribution from Octopus. And an as expected, a reduction from integrated gas.

Frank Calabria: Lucas to talk through the financial review.

Speaker #1: Financial Review.

Tony Lucas: Thank you, Frank. Tony Lucas here, CFO of Origin. Good morning, everyone, and thank you for joining. I will spend the next few minutes on the segment results, our cash generation, and then our balance sheet. Today's strong result reflects three consistent themes. Firstly, we delivered what we said we would on earnings, on cost, and on the battery program. Second, we had strong cash conversion, and we strengthened an already strong balance sheet. Finally, we kept investing in the portfolio through the energy transition for what it needs while maintaining disciplined, sustainable returns to shareholders. Starting with the EBITDA. Group EBITDA of AUD 3.2 billion reflects strong growth in energy markets and an improved contribution from Octopus, and as expected, a reduction from integrated gas. Energy markets EBITDA of AUD 1.7 billion was up 21% and at the upper end of guidance. Electricity was AUD 179 million higher.

Speaker #2: Energy markets EBITDA of 1.7 billion was up 21%. And at the upper end of guidance. Electricity was 179 million higher. That was really three drivers.

Speaker #2: Today's strong result reflects three consistent themes. Firstly, we delivered what we said we would on earnings, on cost, and on the battery program. Secondly, we had strong cash conversion, and we strengthened an already strong balance sheet.

Tony Lucas: Electricity was AUD 179 million higher. There were really three drivers. We had higher wholesale costs flowing through to tariffs with a lag. We had a lower cost of energy, and that lower cost of energy was partially offset by last year's unusually strong wholesale portfolio benefits, which did not repeat. Gas was AUD 20 million higher as both sale and purchase contracts repriced and partially offset by lower trading volumes. Cost to serve produced a further AUD 56 million this year. That is against our financial year 2024 baseline. We delivered AUD 126 million of savings before the two retail acquisitions, and that is delivering the AUD 100 million to AUD 150 million cost out target we set two years ago. With the customer base growing, the battery fleet now operating, and cost discipline embedded, the business enters the near 2027 well-positioned. With the battery ramp up, we expect that to offset lower wholesale prices flowing through customer tariffs.

Speaker #2: We had a higher wholesale cost flowing through to tariffs with the lag. We had a lower cost of energy. And that lower cost of energy was partially offset by last year's unusually strong wholesale portfolio benefits, which didn't repeat.

Speaker #2: And finally, we kept investing in the portfolio through the energy transition for what it needs, while maintaining disciplined, sustainable returns to shareholders. So, starting with the EBITDA: Group EBITDA of $3.2 billion reflects strong growth in energy markets and an improved contribution from Octopus.

Tony Lucas: Finally, we kept investing in the portfolio through the energy transition for what it needs while maintaining disciplined, sustainable returns to shareholders. Starting with the EBITDA. Group EBITDA of AUD 3.2 billion reflects strong growth in energy markets and an improved contribution from Octopus, and as expected, a reduction from integrated gas. Energy markets EBITDA of AUD 1.7 billion was up 21% and at the upper end of guidance. Electricity was AUD 179 million higher.

Speaker #2: Gas was 20 million higher as both sale and purchase contracts repriced. Partially offset by lower trading volumes. Cost to serve reduced a further 56 million this year.

Speaker #2: That's against our fin year 24 baseline. We delivered 126 million of savings before the two retail acquisitions. And that's delivering the 100 to 150 million cost out target we set two years ago.

Speaker #2: And as expected, a reduction from Integrated Gas. Energy Markets EBITDA of $1.7 billion was up 21%, and at the upper end of guidance.

Speaker #2: Electricity was $179 million higher; that was really three drivers. We had a higher wholesale cost flowing through to tariffs with the lag. We had a lower cost of energy.

Speaker #2: With the customer base growing, the battery fleet now operating and cost discipline embedded, the business enters fin year 27 well positioned. We expect battery ramp with the battery ramp up, we expect that to offset lower wholesale prices flowing through customer tariffs.

Tony Lucas: There was really three drivers. We had higher wholesale costs flowing through to tariffs with a lag. We had a lower cost of energy, and that lower cost of energy was partially offset by last year's unusually strong wholesale portfolio benefits, which did not repeat. Gas was AUD 20 million higher as both sale and purchase contracts repriced and partially offset by lower trading volumes. Cost to serve produced a further AUD 56 million this year. That is against our financial year 2024 baseline. We delivered AUD 126 million of savings before the two retail acquisitions, and that is delivering the AUD 100 million to AUD 150 million cost out target we set two years ago. With the customer base growing, the battery fleet now operating, and cost discipline embedded, the business enters the year 2027 well-positioned. With the battery ramp-up, we expect that to offset lower wholesale prices flowing through customer tariffs.

Speaker #2: And that lower cost of energy was partially offset by last year's unusually strong wholesale portfolio benefits, which didn't repeat. Gas was $20 million higher, as both sale and purchase contracts repriced.

Speaker #2: Turning to integrated gas, APL and G delivered operationally well availability improved to 96%. 82 wells driven and 2P reserves increased 332 petajoules. Before production and that's at 100% APL and G level.

Tony Lucas: Turning to Integrated Gas, APLNG delivered operationally very well. Availability improved to 96%, 82 wells driven, and 2P reserves increased 332 petajoules before production, and that is at 100% APLNG level. Earnings were in line with expectations, reflecting a realized oil price of US$72 per barrel, the full-year effect of the Sinopec price review, and LNG trading gains of AUD 140 million. As Frank indicated, the higher oil prices we have seen since February are expected to be realized in financial year 2027, and that supports a continued strong, fully franked distribution from APLNG. Finally, Octopus and Kraken, our share of EBITDA improved AUD 80 million on financial year 2025 to a loss of AUD 8 million. UK retail contributed AUD 134 million. That is the fourth consecutive year of profitability for UK retail, inclusive of the continued investment in smart tariffs to grow connected customers. Non-UK accounts grew by more than 50%.

Speaker #2: Partially offset by lower trading volumes. Cost to serve reduced a further $56 million this year. That's against our FY24 baseline. We delivered $126 million of savings before the two retail acquisitions, and that's delivering the $100 to $150 million cost-out target we set two years ago.

Tony Lucas: We delivered AUD 126 million of savings before the two retail acquisitions, and that is delivering the AUD 100 million to AUD 150 million cost out target we set two years ago. With the customer base growing, the battery fleet now operating, and cost discipline embedded, the business enters the year 2027 well-positioned. With the battery ramp-up, we expect that to offset lower wholesale prices flowing through customer tariffs.

Speaker #2: Earnings were in line with expectations reflecting a realized oil price of US 72 per barrel. The full year effect of the Sinopec price review and LNG trading gains of 140 million.

Speaker #2: With the customer base growing, the battery fleet now operating and cost discipline embedded, the business enters financial year '27 well-positioned. With the battery ramp-up, we expect that to offset lower wholesale prices flowing through customer tariffs.

Speaker #2: As Frank indicated, the higher oil prices we've seen since February are expected to be realized in fin year 27. And that supports a continued strong fully frank distribution from APL and G.

Speaker #2: And finally, Octopus and Kraken our share of EBITDA improved 80 million on fin year 25 to a loss of 8 million. UK retail contributed 134 million.

Speaker #2: Turning to Integrated Gas: APLNG delivered operationally well, availability improved to 96%, 82 wells drilled, and 2P reserves increased by 332 petajoules before production. And that’s at the 100% APLNG level.

Tony Lucas: Turning to integrated gas, APLNG delivered operationally well, availability improved to 96%, 82 wells driven, and 2P reserves increased 332 petajoules before production, and that is at 100% APLNG level. Earnings were in line with expectations, reflecting a realized oil price of US $72 per barrel, the full-year effect of the Sinopec price review, and LNG trading gains of AUD 140 million. As Frank indicated, the higher oil prices we have seen since February are expected to be realized in financial year 2027, and that supports a continued strong fully franked distribution from APLNG. Finally, Octopus and Kraken, our share of EBITDA improved AUD 80 million on financial year 2025 to a loss of AUD 8 million. UK retail contributed AUD 134 million. That is the fourth consecutive year of profitability for UK retail, inclusive of the continued investment in smart tariffs to grow connected customers. Non-UK accounts grew by more than 50%.

Speaker #2: That's the fourth consecutive year of profitability for UK retail. Inclusive of the continued investment in smart tariffs to grow connected customers. Non-UK accounts grew by more than 50%.

Speaker #2: Earnings were in line with expectations, reflecting a realized oil price of US$72 per barrel, the full-year effect of the Sinopec price review, and LNG trading gains of $140 million.

Speaker #2: Energy services improved materially on productivity and is trending towards break even. And Kraken grew revenue 19% while investing in migration capacity or capability. And product development.

Tony Lucas: Energy services improved materially on productivity and is trending towards break even, and Kraken grew revenue 19% while investing in migration capacity or capability and product development. As Frank indicated, legal separation complete and the equity raise finalized in July. Both businesses are well set up for growth, and Origin continues to build substantial long-term value through these investments. Just turning to cash flow, which is the standout of this result. Cash from operating activities, AUD 1.9 billion. That is up almost AUD 1.5 billion on the prior year. We saw Energy Markets cash conversion above 100% with strong credit and collections activity. The warmer winter weather driving lower working capital also, and we have much lower cash tax paid. You will remember in financial year 2024, we had a large balancing payment in that year. We received AUD 911 million in fully franked dividends from APLNG.

Speaker #2: As Frank indicated, the higher oil prices we've seen since February are expected to be realized in financial year '27, and that supports a continued strong, fully franked distribution from APLNG.

Tony Lucas: As Frank indicated, the higher oil prices we have seen since February are expected to be realized in financial year 2027, and that supports a continued strong fully franked distribution from APLNG. Finally, Octopus and Kraken, our share of EBITDA improved AUD 80 million on financial year 2025 to a loss of AUD 8 million. UK retail contributed AUD 134 million. That is the fourth consecutive year of profitability for UK retail, inclusive of the continued investment in smart tariffs to grow connected customers. Non-UK accounts grew by more than 50%.

Speaker #2: As Frank indicated, legal separation complete and the equity raise finalized in July both businesses are well set up for growth. And Origin continues to build substantial long-term value through these investments.

Speaker #2: And finally, Octopus and Kraken: our share of EBITDA improved by $80 million on FY25 to a loss of $8 million. UK Retail contributed $134 million.

Speaker #2: Just turning to cash flow, which is the standout of this result, cash from operating activities 1.9 billion. That's up almost 1.5 billion on the prior year.

Speaker #2: That's the fourth consecutive year of profitability for UK retail, inclusive of the continued investment in smart tariffs to grow connected customers. Non-UK accounts grew by more than 50%.

Speaker #2: We saw energy markets cash conversion above 100% with strong credit and collections activity. The warmer winter weather driving lower working capital also. And we have much lower cash tax paid.

Speaker #2: Energy Services improved materially on productivity and is trending towards break-even. Kraken grew revenue 19% while investing in migration capacity and product development.

Tony Lucas: Energy services improved materially on productivity and is trending towards break even. Kraken grew revenue 19% while investing in migration capacity or capability and product development. As Frank indicated, legal separation complete and the equity raise finalized in July. Both businesses are well set up for growth, and Origin continues to build substantial long-term value through these investments. Just turning to cash flow, which is the standout of this result. Cash from operating activities, AUD 1.9 billion. That is up almost AUD 1.5 billion on the prior year. We saw energy markets cash conversion above 100% with strong credit and collections activity, the warmer winter weather driving lower working capital also. We have much lower cash tax paid. You will remember in financial year 2024, we had a large balancing payment in that year. We received AUD 911 million in fully franked dividends from APLNG.

Speaker #2: You'll remember in fin year 24 we had a large balancing payment in that year. We received 911 million in fully frank dividends from APL and G.

Speaker #2: As Frank indicated, with the legal separation complete and the equity raise finalized in July, both businesses are well set up for growth. Origin continues to build substantial long-term value through these investments.

Speaker #2: The capex expenditure reduced by 500 million as the battery build program passed its peak. So adjusted free cash flow of 2.1 billion which is up 867 million.

Tony Lucas: CapEx expenditure reduced by AUD 500 million as the battery build program passed its peak. Adjusted free cash flow of AUD 2.1 billion, which is up AUD 867 million. The underlying story here is two strong businesses converting those earnings to cash. Now to focus on the balance sheet. Strong operating cash flows and dividends from APLNG more than covered the CapEx program and shareholder dividends. Adjusted net debt at 30 June 2026 of AUD 4.85 billion increased slightly over the prior year, and that is once the battery tolling increases are included. Adjusted net debt to adjusted underlying EBITDA was 1.6 times. That is below our 2 to 3 times target range, again, driven by strong cash performance. Just as a reminder, the metric now includes the franked credits attached to APLNG distribution.

Speaker #2: So the underlying story here is two strong businesses converting those earnings to cash. Now to focus on the balance sheet. So strong operating cash flows and dividends from APL and G more than covered the capex program and shareholder dividends.

Speaker #2: Just turning to cash flow, which is the standout of this result: cash from operating activities was $1.9 billion. That's up almost $1.5 billion on the prior year.

Tony Lucas: Cash from operating activities, AUD 1.9 billion. That is up almost AUD 1.5 billion on the prior year. We saw energy markets cash conversion above 100% with strong credit and collections activity, the warmer winter weather driving lower working capital also. We have much lower cash tax paid. You will remember in financial year 2024, we had a large balancing payment in that year. We received AUD 911 million in fully franked dividends from APLNG.

Speaker #2: We saw energy markets cash conversion above 100%, with strong credit and collections activity. The warmer winter weather drove lower working capital as well, and we had much lower cash tax paid.

Speaker #2: Adjusted net debt at 30 June 26 of 4.85 billion increased slightly over the prior year. And that's once the battery tolling increases are included.

Speaker #2: You'll remember in financial year 2024, we had a large balancing payment in that year. We received $911 million in fully franked dividends from APLNG. The capex expenditure reduced by $500 million as the battery build program passed its peak.

Speaker #2: Adjusted net debt to adjusted underlying EBITDA was 1.6 times. That's below our 2 to 3 times target range. A gain driven by strong cash performance.

Tony Lucas: CapEx expenditure reduced by AUD 500 million as the battery build program passed its peak. Adjusted free cash flow of AUD 2.1 billion, which is up AUD 867 million. The underlying story here is two strong businesses converting those earnings to cash. Now to focus on the balance sheet. Strong operating cash flows and dividends from APLNG more than covered the CapEx program and shareholder dividends. Adjusted net debt at 30 June 2026 of AUD 4.85 billion increased slightly over the prior year, and that is once the battery tolling increases are included. Adjusted net debt to adjusted underlying EBITDA was 1.6 times. That is below our two to three times target range, again, driven by strong cash performance. Just as a reminder, the metric now includes the franked credits attached to APLNG distribution.

Speaker #2: So just as a reminder, the metric now includes the franked credits attached to APL and G distribution. We think this better reflects the pre-tax nature of that metric and better aligns with our Moody's credit rating.

Speaker #2: So, adjusted free cash flow of $2.1 billion, which is up $867 million. So, the underlying story here is two strong businesses converting those earnings to cash.

Tony Lucas: We think this better reflects the pre-tax nature of that metric and better aligns with our Moody's credit rating. Over financial year 2027, we expect to move into the lower end of the target range. This will be reflecting completion of the battery program and the remaining battery leases and the Kraken investment made in July, and we will have lower LNG trading gains in financial year 2027. The balance sheet settings remain prudent given market conditions. Overall, the balance sheet is strong and flexible with capacity to continue to fund the portfolio through the transition. Finally, capital allocation. The board has determined a fully franked dividend of AUD 0.30 per share. As Frank said, that brings financial year 2026 distributions to AUD 0.60, fully franked. That is a yield of 5.6% before the franking benefit, and this represents 50% of adjusted free cash flow.

Speaker #2: Over fin year 27, we expect to move into the lower end of the target range. This will be reflecting completion of the battery program and the remaining battery leases.

Speaker #2: Now to focus on the balance sheet. Strong operating cash flows and dividends from APLNG more than covered the capex program and shareholder dividends.

Speaker #2: Adjusted net debt at 30 June 2026 of $4.85 billion increased slightly over the prior year, and that's once the battery tolling increases are included.

Speaker #2: And the Kraken investment made in July. And we will have lower LNG trading gains in fin year 27. The balance sheet settings remain prudent given market conditions.

Tony Lucas: Adjusted net debt at 30 June 2026 of AUD 4.85 billion increased slightly over the prior year, and that is once the battery tolling increases are included. Adjusted net debt to adjusted underlying EBITDA was 1.6 times. That is below our two to three times target range, again, driven by strong cash performance. Just as a reminder, the metric now includes the franked credits attached to APLNG distribution.

Speaker #2: Overall, the balance sheet is strong and flexible with capacity to continue to fund the portfolio. Through the transition. And finally, capital allocation. The board has determined a fully frank dividend of 30 cents per share.

Speaker #2: Adjusted net debt to adjusted underlying EBITDA was 1.6 times. That’s below our 2 to 3 times target range, again driven by strong cash performance.

Speaker #2: So just as a reminder, the metric now includes the franking credits attached to APL and G distribution. We think this better reflects the pre-tax nature of that metric and better aligns with our Moody’s credit rating.

Speaker #2: As Frank said, that brings fin year 26 distributions to 60 cents. Fully franked. That's a yield of 5.6% before the franking benefit. And this represents 50% of adjusted free cash flow.

Tony Lucas: We think this better reflects the pre-tax nature of that metric and better aligns with our Moody's credit rating. Over financial year 2027, we expect to move into the lower end of the target range. This will be reflecting completion of the battery program and the remaining battery leases and the Kraken investment made in July. We will have lower LNG trading gains in financial year 2027. The balance sheet settings remain prudent given market conditions. Overall, the balance sheet is strong and flexible, with capacity to continue to fund the portfolio through the transition. Finally, capital allocation. The board has determined a fully franked dividend of AUD 0.30 per share. As Frank said, that brings financial year 2026 distributions to AUD 0.60, fully franked. That is a yield of 5.6% before the franking benefit, and this represents 50% of adjusted free cash flow.

Speaker #2: Over financial year '27, we expect to move into the lower end of the target range. This will reflect the completion of the battery program and the remaining battery leases.

Speaker #2: It was an exceptionally strong cash year. If you look at the cash the dividend payout average over fin year 24 to 26, it's more like 70% of adjusted free cash flow.

Tony Lucas: It was an exceptionally strong cash year. If you look at the dividend payout average over financial year 2024 to 2026, it is more like 70% of adjusted free cash flow. Over this period, we have used 62% of our adjusted free cash flow has been directed to major growth projects, and that is predominantly that battery fleet, which is now generating earnings. The dividend is consistent with our policy of delivering sustainable distributions through the business cycle. My reflection on the result is our consistency in delivering what we said we would, earnings at the upper end of guidance, battery program on time, on budget, and now earning and converting to cash, and a balance sheet that lets us invest through the transition while sustaining fully franked returns. I will hand back to Frank Calabria, take us through the business detail.

Speaker #2: And the Kraken investment made in July, and where we’ll have lower LNG trading gains in financial year 2027. The balance sheet settings remain prudent given market conditions.

Speaker #2: And over this period, we've been able to we've used 62% of our adjusted free cash flow has been directed to major growth projects. And that's predominantly that battery fleet which is now generating earnings.

Speaker #2: Overall, the balance sheet is strong and flexible, with capacity to continue to fund the portfolio through the transition. And finally, capital allocation—the Board has determined a fully franked dividend of 30 cents per share.

Tony Lucas: Overall, the balance sheet is strong and flexible, with capacity to continue to fund the portfolio through the transition. Finally, capital allocation. The board has determined a fully franked dividend of AUD 0.30 per share. As Frank said, that brings financial year 2026 distributions to AUD 0.60, fully franked. That is a yield of 5.6% before the franking benefit, and this represents 50% of adjusted free cash flow.

Speaker #2: The dividend is consistent with our policy of delivering sustainable distributions through the business cycle. So my reflection on the result is our consistency in delivering what we said we would.

Speaker #2: As Frank said, that brings FY26 distributions to 60 cents, fully franked. That's a yield of 5.6% before the franking benefit, and this represents 50% of adjusted free cash flow.

Speaker #2: Earnings at the upper end of guidance. Battery program on time on budget and now earning and converting to cash. And a balance sheet that lets us invest through the transition while sustaining fully franked returns.

Speaker #2: It was an exceptionally strong cash year. If you look at the cash, the dividend payout average over fiscal years 2024 to 2026 is more like 70% of adjusted free cash flow.

Speaker #2: I'll hand back to Frank. Take us through the business details.

Speaker #1: Great. Thanks very much. Tony, now turning to business performance and we're on slide 16. And in energy markets, we have delivered on our short and medium-term targets in 2026.

Frank Calabria: Thanks very much, Tony. Turning to business performance, we are on slide 16. In Energy Markets, we have delivered on our short and medium-term targets in 2026. On the left-hand side, the electricity gross profit continues to sit above the medium-term target of AUD 25 to AUD 40 a megawatt hour. In 2027, it is expected to remain above the target range with the batteries coming online, and that will be partially offset by lower wholesale prices flowing into tariffs. In 2028, we do expect a moderation of gross profit as lower forward prices flow through to tariffs. For gas earnings, they are also above the medium-term target of AUD 3 to AUD 4 a gigajoule. There were lower trading volumes in the 2026 financial year with the 35 petajoule GLNG contract ending just prior to it in May 2025.

Speaker #2: And over this period, we've been able to— we've used 62% of our adjusted free cash flow, which has been directed to major growth projects, and that's predominantly that battery fleet, which is now generating earnings.

Speaker #1: On the left-hand side, the electricity gross profit continues to sit above the medium-term target of 25 to $40 a megawatt hour. In 2027, it's expected to remain above the target range with the batteries coming online.

Speaker #2: The dividend is consistent with our policy of delivering sustainable distributions through the business cycle. So, my reflection on the result is our consistency in delivering what we said we would: earnings at the upper end of guidance, the battery program on time and on budget, and now earning and converting to cash, and a balance sheet that lets us invest through the transition while sustaining fully franked returns.

Speaker #1: And that'll be partially offset by lower wholesale prices flowing into tariffs. In 2028, we do expect a moderation of gross profit as lower forward prices flow through to tariffs.

Tony Lucas: My reflection on the result is our consistency in delivering what we said we would, earnings at the upper end of guidance, battery program on time, on budget, and now earning and converting to cash, and a balance sheet that lets us invest through the transition while sustaining fully franked returns. I will hand back to Frank, take us through the business details.

Speaker #1: For gas earnings, they're also above the medium-term target of 3 to $4 a gigajoule. They were lower trading volumes in the 2026 financial year with the 35 petajoule GL and G contract ending just prior to it in May 2025.

Speaker #2: I'll hand back to Frank. Take us through the business details.

Speaker #1: Thanks very much. Tony, now turning to business performance, and we're on slide 16. In Energy Markets, we have delivered on our short- and medium-term targets for 2026.

Frank Calabria: Thanks very much, Tony. Now turning to business performance, we are on slide 16. In energy markets, we have delivered on our short and medium-term targets in 2026. On the left-hand side, the electricity gross profit continues to sit above the medium-term target of AUD 25 to AUD 40 a megawatt hour. In 2027, it is expected to remain above the target range with the batteries coming online, and that will be partially offset by lower wholesale prices flowing into tariffs. In 2028, we do expect a moderation of gross profit as lower forward prices flow through to tariffs. For gas earnings, they are also above the medium-term target of AUD 3 to AUD 4 a gigajoule. There were lower trading volumes in the 2026 financial year, with the 35 petajoule Gladstone LNG contract ending just prior to it in May 2025.

Speaker #1: And in 2027, we do expect our oil JKM link supply costs to be lower with our current contract positions. And just a reminder, the beach Otway contract is subject to price review which hasn't yet concluded.

Frank Calabria: In 2027, we do expect our oil JKM link supply costs to be lower with our current contract positions. Just a reminder, the Beach Otway contract is subject to price review, which has not yet concluded, but on conclusion, is effective from July 2026. Lastly, the cost to serve target, as we said in 2024, has been achieved between AUD 100 million to AUD 150 million, and that also is achieved even including the two new acquisitions that were made this year. We also were able to lower our bad and doubtful debt with improved collections, through our automated credit decision engine. Turning to customer on the next slide, the growth momentum continues. We have added 243,000 customer accounts this year. That has both been organic and inorganic. The acquisitions of 1st Energy and Energy Locals added 135,000 of those accounts.

Speaker #1: On the left-hand side, the electricity gross profit continues to sit above the medium-term target of $25 to $40 a megawatt hour. In 2027, it's expected to remain above the target range with the batteries coming online, and that'll be partially offset by lower wholesale prices flowing into tariffs.

Speaker #1: But on conclusion is effective from July 2026. And then just lastly, the cost to serve target as we said in 2024 has been achieved between $100 to $150 million.

Speaker #1: In 2028, we do expect a moderation of gross profit as lower forward prices flow through to tariffs. For gas earnings, they're also above the medium-term target of $3 to $4 a gigajoule.

Speaker #1: And that also is achieved even including the two new acquisitions that were made this year. And we also were able to lower our bad and our full debt with improved collections through our automated credit decision engine.

Frank Calabria: In 2028, we do expect a moderation of gross profit as lower forward prices flow through to tariffs. For gas earnings, they are also above the medium-term target of AUD 3 to AUD 4 a gigajoule. There were lower trading volumes in the 2026 financial year, with the 35 petajoule Gladstone LNG contract ending just prior to it in May 2025.

Speaker #1: There were lower trading volumes in the 2026 financial year, with the 35 petajoule GL& G contract ending just prior to it, in May 2025.

Speaker #1: Turning to customer on the next slide, we growth momentum continues. We've added 243,000 customer accounts this year. That's both been organic and inorganic. The acquisitions of First Energy and Energy Locals added 135,000 of those accounts.

Speaker #1: And in 2027, we do expect our oil JKM-linked supply costs to be lower with our current contract positions. And just a reminder, the Beach Otway contract is subject to a price review, which hasn't yet concluded.

Frank Calabria: In 2027, we do expect our oil JKM linked supply costs to be lower with our current contract positions. Just a reminder, the Beach Otway contract is subject to price review, which has not yet concluded, but on conclusion, is effective from July 2026. Lastly, the cost to serve target, as we said in 2024, has been achieved between AUD 100 to AUD 150 million. That also is achieved even including the two new acquisitions that were made this year. We also were able to lower our bad and doubtful debt with improved collections, through our automated credit decision engine. Turning to customer on the next slide, the growth momentum continues. We have added 243,000 customer accounts this year. That has both been organic and inorganic. The acquisitions of 1st Energy and Energy Locals added 135,000 of those accounts.

Speaker #1: We have a community energy services business which may otherwise known as embedded networks in the residential space and businesses at 484,000 customers. And we've achieved a 46% compound annual growth in internet count customers over the last three years.

Frank Calabria: We have a community energy services business, which may otherwise known as embedded networks in the residential space and businesses at 484,000 customers, and we have achieved a 46% compound annual growth in internet count customers over the last three years. Our churn continues to be lowest in the market, and we continued improvement in customer experience as measured by the Customer Happiness Index. We have introduced new propositions as distributed assets increase. We have increased the number of interactions that are now being fully digital, and we continue to scale AI across our business. Our virtual power plant once again grew to 1.6 gigawatts. Just turning to what is happening in the market over the last 12 months, in particular, what has happened with batteries.

Speaker #1: But the conclusion is effective from July 2026. And then just lastly, the cost-to-serve target, as we said, in 2024 has been achieved—between $100 million to $150 million.

Speaker #1: Our churn continues to be lowest in the market and we continued improvement in customer experience as measured by the customer happiness index. We've introduced new propositions as distributed assets increase.

Speaker #1: And that is also achieved even including the two new acquisitions that were made this year. And we also were able to lower our bad and our full debt with improved collections through our automated credit decision engine.

Frank Calabria: We also were able to lower our bad and doubtful debt with improved collections, through our automated credit decision engine. Turning to customer on the next slide, the growth momentum continues. We have added 243,000 customer accounts this year. That has both been organic and inorganic. The acquisitions of 1st Energy and Energy Locals added 135,000 of those accounts.

Speaker #1: We have increased the number of interactions that are now being fully digital. And we continue to scale AI. Across our business and our virtual power plant once again grew to 1.6 gigawatts.

Speaker #1: Turning to customer on the next slide, we see the growth momentum continues. We've added 243,000 customer accounts this year. That's been both organic and inorganic.

Speaker #1: The acquisitions of First Energy and Energy Locals added 135,000 of those accounts. We have a community energy services business, which may otherwise be known as embedded networks in the residential space, and businesses at 484,000 customers.

Speaker #1: Now just turning to what's happening in the market over the last 12 months in particular what's happened with batteries. You'll see that grid scale batteries in the NEM have more than doubled in the last 12 months.

Frank Calabria: We have a community energy services business, which may otherwise known as embedded networks in the residential space and businesses at 484,000 customers, and we have achieved a 46% compound annual growth in internet count customers over the last 3 years. Our churn continues to be lowest in the market, and we continued improvement in customer experience as measured by the Customer Happiness Index. We have introduced new propositions as distributed assets increase. We have increased the number of interactions that are now being fully digital. We continue to scale AI across our business, and our virtual power plant once again grew to 1.6 gigawatts. Just turning to what is happening in the market over the last 12 months, in particular, what has happened with batteries.

Frank Calabria: You'll see that grid-scale batteries in the NEM have more than doubled in the last 12 months, and they're now able to meet about 25% of peak demand. At the same time, you can see there's greater than four times growth in behind-the-meter batteries in the last 12 months, and that's having an impact on the shape of residential grid demand. The role of batteries and gas work well together, with batteries being suited to managing those evening peaks and the short, sharp spikes. That means that we start our gas fleet less. That defers maintenance costs, and gas peakers continue to play an important role in managing extreme and long-duration volatility events. We build on that further on the next slide, which shows that batteries will solve most days, while gas peakers and hydro will firm the seasons.

Speaker #1: And they're now able to meet about 25% of peak demand. At the same time, you can see there's greater than four times growth in behind the meter batteries in the last 12 months.

Speaker #1: And we've achieved a 46% compound annual growth in internet customer count over the last three years. Our churn continues to be the lowest in the market, and we've seen continued improvement in customer experience, as measured by the Customer Happiness Index.

Speaker #1: And that's having an impact on the shape of residential grid demand. The role of batteries and gas work well together with batteries being suited to managing those evening peaks and the short sharp spikes.

Speaker #1: We've introduced new propositions as distributed assets increase. We've increased the number of interactions that are now fully digital, and we continue to scale AI.

Frank Calabria: We have introduced new propositions as distributed assets increase. We have increased the number of interactions that are now being fully digital. We continue to scale AI across our business, and our virtual power plant once again grew to 1.6 gigawatts. Just turning to what is happening in the market over the last 12 months, in particular, what has happened with batteries.

Speaker #1: That means that we're start our gas fleet less. That defers maintenance costs. And gas peakers continue to play an important role managing extreme and long duration.

Speaker #1: Across our business, and our virtual power plant once again grew to 1.6 gigawatts. Now, just turning to what's happening in the market over the last 12 months—in particular, what's happened with batteries.

Speaker #1: Volatility events. We build on that further on the next slide. Which shows that batteries will solve most days while gas peakers and hydro will firm the seasons.

Speaker #1: You'll see that grid-scale batteries in the NEM have more than doubled in the last 12 months, and they're now able to meet about 25% of peak demand.

Frank Calabria: You will see that grid-scale batteries in the NEM have more than doubled in the last 12 months, and they are now able to meet about 25% of peak demand. At the same time, you can see there is greater than 4 times growth in behind-the-meter batteries in the last 12 months, and that is having an impact on the shape of residential grid demand. The role of batteries and gas work well together, with batteries being suited to managing those evening peaks and the short, sharp spikes. That means that we start our gas fleet less. That defers maintenance costs, and gas peakers continue to play an important role in managing extreme and long-duration volatility events. We build on that further on the next slide, which shows that batteries will solve most days while gas peakers and hydro will firm the seasons.

Speaker #1: And in the context of a market with the growing renewable energy, there'll be more variability meaning there'll be both daily and seasonal periods of both over and under supply.

Frank Calabria: In the context of a market with the growing renewable energy, there'll be more variability, meaning there'll be both daily and seasonal periods of both over and under supply. Batteries will solve most days in summer and spring, where we have an abundance of renewable energy. However, they cannot shift energy between seasons. Then if you turn to winter and autumn, the renewable output is less, meaning batteries are more often depleted before the demand is met. The long-duration firming of gas peakers and hydro will be required to solve those seasonal swings. I just note that in winter, the month we're going through now, it's been very mild conditions, and we've also had very high coal availability, the highest in the last five years.

Speaker #1: At the same time, you can see there's greater than four times growth in behind-the-meter batteries in the last 12 months, and that's having an impact on the shape of residential grid demand.

Speaker #1: So batteries will solve most days in summer and spring where we have an abundance of renewable energy. However, they cannot shift energy between seasons.

Speaker #1: The role of batteries and gas work well together, with batteries being suited to managing those evening peaks and the short, sharp spikes. That means that we start our gas fleet less.

Speaker #1: And then if you turn to winter and autumn, the renewable output is less. Meaning batteries are more often depleted before the demand is met.

Frank Calabria: That means that we start our gas fleet less. That defers maintenance costs, and gas peakers continue to play an important role in managing extreme and long-duration volatility events. We build on that further on the next slide, which shows that batteries will solve most days while gas peakers and hydro will firm the seasons.

Speaker #1: The long duration firming of gas peakers and hydro will be required to solve those seasonal swings. And I just note that in winter the warmth we're going through now it's been very mild conditions.

Speaker #1: That defers maintenance costs. And gas peakers continue to play an important role managing extreme and long-duration volatility events. We build on that further on the next slide, which shows that batteries will solve most days, while gas peakers and hydro will firm the seasons.

Speaker #1: And we've also had very high coal availability the highest in the last five years. So origin holds the battery and gas peaking portfolio that positions it well to manage both daily and seasonal variability in a changing energy market.

Frank Calabria: Origin holds the battery and gas peaking portfolio that positions it well to manage both daily and seasonal variability in a changing energy market. Turning to APLNG, and some of this information was provided in the quarterly. APLNG revenue has declined in line with expectations. We've had lower sales volumes and realized prices. As I stated earlier, the recent high oil prices will be realized in the 2027 financial year. Costs have increased by 5% to AUD 3 billion, as we've continued to drive increased investment in our well optimization projects, development infrastructure, and exploration program. They were partially offset by some lower power costs. We've stated before that the cash distribution was AUD 911 million. Just worth noting that AUD 335 million of those dividends related to the cash generated in the 2025 financial year.

Speaker #1: And in the context of a market with growing renewable energy, there'll be more variability, meaning there will be both daily and seasonal periods of over- and under-supply.

Frank Calabria: In the context of a market with the growing renewable energy, there will be more variability, meaning there will be both daily and seasonal periods of both over and under supply. Batteries will solve most days in summer and spring, where we have an abundance of renewable energy. However, they cannot shift energy between seasons. If you turn to winter and autumn, the renewable output is less, meaning batteries are more often depleted before the demand is met. The long-duration firming of gas peakers and hydro will be required to solve those seasonal swings. I just note that in winter, the months we are going through now, it has been very mild conditions, and we have also had very high coal availability, the highest in the last 5 years.

Speaker #1: Turning to APL and G and some of this information was provided in the quarterly. But APL and G revenue has declined in line with expectations.

Speaker #1: So, batteries will solve most days in summer and spring, where we have an abundance of renewable energy. However, they cannot shift energy between seasons.

Speaker #1: We've had lower sales volumes and realized prices. As I stated earlier, the recent high oil prices will be realized in the 2027 financial year.

Speaker #1: And then if you turn to winter and autumn, the renewable output is less, meaning batteries are more often depleted before the demand is met.

Speaker #1: And costs have increased to by 5% to 3 billion as we've continued to drive increased investment in our well optimization projects development infrastructure and exploration program.

Speaker #1: The long-duration firming of gas peakers and hydro will be required to solve those seasonal swings. I’d just note that in the winter we’re going through now, it’s been very mild conditions, and we’ve also had very high coal availability—the highest in the last five years.

Frank Calabria: The long-duration firming of gas peakers and hydro will be required to solve those seasonal swings. I just note that in winter, the months we are going through now, it has been very mild conditions, and we have also had very high coal availability, the highest in the last 5 years. Origin holds the battery and gas peaking portfolio that positions it well to manage both daily and seasonal variability in a changing energy market.

Speaker #1: And they were partially offset by some lower power costs. We've stated before that the cash distribution was 911 million dollars. Just worth noting that 335 million of those dividends related to the cash generated in the 2025 financial year.

Speaker #1: So Origin holds the battery and gas peaking portfolio that positions it well to manage both daily and seasonal variability in a changing energy market.

Frank Calabria: Origin holds the battery and gas peaking portfolio that positions it well to manage both daily and seasonal variability in a changing energy market. Turning to APLNG, some of this information was provided in the quarterly. APLNG revenue has declined in line with expectations. We have had lower sales volumes and realized prices. As I stated earlier, the recent high oil prices will be realized in the 2027 financial year. Costs have increased by 5% to AUD 3 billion, as we have continued to drive increased investment in our well optimization projects, development infrastructure, and exploration program. They were partially offset by some lower power costs. We have stated before that the cash distribution was AUD 911 million. Just worth noting that AUD 335 million of those dividends related to the cash generated in the 2025 financial year.

Speaker #1: Turning to APLNG, and as some of this information was provided in the quarterly, APLNG revenue has declined in line with expectations. We've had lower sales volumes and realized prices.

Frank Calabria: Turning to APLNG, some of this information was provided in the quarterly. APLNG revenue has declined in line with expectations. We have had lower sales volumes and realized prices. As I stated earlier, the recent high oil prices will be realized in the 2027 financial year. Costs have increased by 5% to AUD 3 billion, as we have continued to drive increased investment in our well optimization projects, development infrastructure, and exploration program.

Speaker #1: And based on about a week or so ago, 40% of APL and G's JCC oil exposure for the next financial year or the 27 financial year I should say has been priced at $100 US a barrel.

Frank Calabria: Based on about a week or so ago, 40% of APLNG's JCC oil exposure for the next financial year, or the 2027 financial year, I should say, has been priced at $100 US a barrel, and that's before any Origin hedging. Turning to slide 21. APLNG has 2P reserves of 9,619 petajoules, 61% operated 2P reserves replacement in the financial year 2026. As you can see on the left-hand chart, greater than 50% of our reserves and resources extend beyond the existing export contracts, and we also have further reserves growth potential through exploration success. On the right-hand side, you can see production of 668 petajoules for the year. The team have done a very good job delivering their program through the year. You can see that base optimization which we set out to achieve has now improved well availability to 96%.

Speaker #1: As I stated earlier, the recent high oil prices will be realized in the 2027 financial year. Costs have increased by 5% to $3 billion as we've continued to drive increased investment in our well-optimization projects, development infrastructure, and exploration program.

Speaker #1: And that's before any origin hedging. Turning to slide 21, APL and G has 2P reserves of 9,619 petajoules. 61% operated 2P reserves replacement in the financial year 26.

Speaker #1: And they were partially offset by some lower power costs. We've stated before that the cash distribution was $911 million. Just worth noting that $335 million of those dividends related to the cash generated in the 2025 financial year.

Frank Calabria: They were partially offset by some lower power costs. We have stated before that the cash distribution was AUD 911 million. Just worth noting that AUD 335 million of those dividends related to the cash generated in the 2025 financial year. Based on about a week or so ago, 40% of APLNG's JCC oil exposure for the next financial year, or the 2027 financial year, I should say, has been priced at $100 US a barrel, and that is before any Origin hedging.

Speaker #1: And as you can see on the left hand chart, greater than 50% of our reserves and resources extend beyond the existing export contracts and we also have further reserves growth potential through exploration success.

Speaker #1: And based on about a week or so ago, 40% of APLNG's JCC oil exposure for the next financial year, or the '27 financial year, I should say, has been priced at $100 US a barrel. And that's before any Origin hedging.

Speaker #1: On the right hand side, you can see production of 668 petajoules for the year. The team have done a very good job delivering their program through the year.

Frank Calabria: Based on about a week or so ago, 40% of APLNG's JCC oil exposure for the next financial year, or the 2027 financial year, I should say, has been priced at $100 US a barrel, and that is before any Origin hedging. Turning to slide 21. APLNG has 2P reserves of 9,619 petajoules, 61% operated 2P reserves replacement in the financial year 2026. As you can see on the left-hand chart, greater than 50% of our reserves and resources extend beyond the existing export contracts, and we also have further reserves growth potential through exploration success. On the right-hand side, you can see production of 668 petajoules for the year. The team have done a very good job delivering their program through the year. You can see that base optimization which we set out to achieve has now improved well availability to 96%.

Speaker #1: And you can see that base optimization which we set out to achieve has now improved well availability to 96%. We now have our work over inventory to optimal levels and we've completed a number of infrastructure projects that have had benefits to debottleneck to enable that production.

Frank Calabria: We now have our workover inventory to optimal levels, and we have completed a number of infrastructure projects that have had benefits to debottleneck to enable that production. We drilled 82 operated wells during the year. We commissioned 92 wells. To note that in 2027 financial year, we will be ramping up our drilling. Slide 22 just highlights the way we think about our production levers, and the first three of those blocks really do talk about more of that optimization activity as we focus for the 2027 financial year. Probably just want to make note of the ramp-up of new well development. Our increased drilling that I just noted before will include new Asset West fields. Just to note that it takes approximately two years for new wells to reach peak production.

Speaker #1: Turning to slide 21, APLNG has 2P reserves of 9,619 petajoules. There was a 61% operated 2P reserves replacement in the financial year '26. As you can see on the left-hand chart, more than 50% of our reserves and resources extend beyond the existing export contracts, and we also have further reserves growth potential through exploration success.

Frank Calabria: Turning to slide 21. APLNG has 2P reserves of 9,619 petajoules, 61% operated 2P reserves replacement in the financial year 2026. As you can see on the left-hand chart, greater than 50% of our reserves and resources extend beyond the existing export contracts, and we also have further reserves growth potential through exploration success. On the right-hand side, you can see production of 668 petajoules for the year. The team have done a very good job delivering their program through the year. You can see that base optimization which we set out to achieve has now improved well availability to 96%.

Speaker #1: We drilled 82 operated wells during the year. We commissioned 92 wells. And really to note that in 2027 financial year we'll be ramping up our drilling.

Speaker #1: Slide 22 just highlights the way we think about our production leaders. And the first three of those blocks really just do talk about more of that optimization activity as we focus for the 2027 financial year.

Speaker #1: On the right-hand side, you can see production of 668 petajoules for the year. The team have done a very good job delivering their program through the year.

Speaker #1: Probably just want to make note of the ramp up of new well development. Our increased drilling that I just noted before will include new asset east fields.

Speaker #1: And you can see that base optimization, which we set out to achieve, has now improved well availability to 96%. We now have our workover inventory at optimal levels, and we've completed a number of infrastructure projects that have helped to debottleneck and enable that production.

Speaker #1: And just to note that it takes approximately two years for new wells to reach peak production. In the midterm investment, we do continue to evaluate opportunities to unlock reserves in the asset west.

Frank Calabria: We now have our workover inventory to optimal levels, and we have completed a number of infrastructure projects that have had benefits to de-bottleneck to enable that production. We drilled 82 operated wells during the year. We commissioned 92 wells. Really to note that in 2027 financial year, we will be ramping up our drilling. Slide 22 just highlights the way we think about our production levers, and the first three of those blocks really do talk about more of that optimization activity as we focus for the 2027 financial year. Probably just want to make note of the ramp-up of new well development. Our increased drilling that I just noted before will include new Asset East fields. Just to note that it takes approximately 2 years for new wells to reach peak production.

Frank Calabria: In relation to midterm investment, we do continue to evaluate opportunities to unlock reserves in the Asset West. Joint venture approval would be required for those, and that will be informed by both market and regulatory outlook. In terms of midterm investment, we do also remain very focused on growing reserves and resources through exploration and appraisal opportunities, including the Taroom Trough. We are very excited by the Taroom Trough, and APLNG holds a large tenure footprint across both operated and non-operated holdings. Just to note that most of that is near existing gas infrastructure. Turning to Octopus Energy, and you can really see that the Octopus brand and service just underpins impressive growth.

Speaker #1: Joint venture approval would be required for those and that will be informed by both Margaret and regulatory outlook. In terms of midterm investment, we do also remain very focused on growing reserves and resources through exploration and appraisal opportunities.

Speaker #1: We drilled 82 operated wells during the year. We commissioned 92 wells. And really, to note that in the 2027 financial year, we'll be ramping up our drilling.

Speaker #1: Slide 22 just highlights the way we think about our production levers, and the first three of those blocks really just do talk about more of that optimization activity as we focus for the 2027 financial year.

Speaker #1: Including the trim trough. We're excited by the and APL and G holds a large 10-year footprint across both operated and not operated holdings. And just to note that most of that is near existing gas infrastructure.

Speaker #1: I just want to make note of the ramp-up in new well development. Our increased drilling, as I mentioned earlier, will include new asset east fields.

Frank Calabria: Probably just want to make note of the ramp-up of new well development. Our increased drilling that I just noted before will include new Asset East fields. Just to note that it takes approximately 2 years for new wells to reach peak production. In relation to midterm investment, we do continue to evaluate opportunities to unlock reserves in the Asset West. Joint venture approval would be required for those, and that will be informed by both market and regulatory outlook.

Speaker #1: Turning to Octopus Energy and you can really see that the Octopus brand and service just underpins impressive growth. The brand in the UK is a standout market leader as you can see in that top left.

Speaker #1: And just to note that it takes approximately two years for new wells to reach peak production. In relation to mid-term investment, we do continue to evaluate opportunities to unlock reserves in the Asset West.

Frank Calabria: In relation to midterm investment, we do continue to evaluate opportunities to unlock reserves in the Asset West. Joint venture approval would be required for those, and that will be informed by both market and regulatory outlook. In terms of midterm investment, we do also remain very focused on growing reserves and resources through exploration and appraisal opportunities, including the Taroom Trough. We are very excited by the Taroom Trough, and APLNG holds a large tenure footprint across both operated and non-operated holdings. Just to note that most of that is near existing gas infrastructure. Turning to Octopus Energy, you can really see that the Octopus brand and service just underpins impressive growth.

Frank Calabria: The brand in the UK is a standout market leader, as you can see in that top left, and that is driving their continued growth in the UK market on the top right where it really is leading the market and has grown another 800,000 customers to have 26% market share. You can see that replicating now through to the non-UK markets, where they now have 4.1 million customer accounts. When we think about energy services, what they are doing there is building an ecosystem of assets and platform, that enables them to meet all those customer needs, and that really extends across scaling installations. It is an electric vehicle leasing fleet, and they have grown their VPP to 3.2 gigawatts. The development of that business then links back into, continuing to grow value, and customers in the UK retail business and other markets, in the markets that are rapidly transitioning.

Speaker #1: And that's driving their continued growth in the UK market on the top right where it really is leading the market and has grown another 800,000 customers to have 26% market share.

Speaker #1: Joint venture approval would be required for those, and that will be informed by both market and regulatory outlook. In terms of mid-term investment, we also remain very focused on growing reserves and resources through exploration and appraisal opportunities.

Frank Calabria: In terms of midterm investment, we do also remain very focused on growing reserves and resources through exploration and appraisal opportunities, including the Taroom Trough. We are very excited by the Taroom Trough, and APLNG holds a large tenure footprint across both operated and non-operated holdings. Just to note that most of that is near existing gas infrastructure. Turning to Octopus Energy, you can really see that the Octopus brand and service just underpins impressive growth.

Speaker #1: You can see that replicating now through to the non-UK markets where they now have 4.1 million customer accounts. And when we think about energy services, what they're doing there is building an ecosystem of assets and platform that enables them to meet all those customer needs.

Speaker #1: Including the Trim Trough, we're very excited by the Trim Trough. And APLNG holds a large 10-year footprint across both operated and non-operated holdings. And just to note that most of that is near existing gas infrastructure.

Speaker #1: And that really extends across scaling installations. It's an electric vehicle leasing fleet. And they've grown their VPP to 3.2 gigawatts. The development of that business then links back into continuing to grow value and customers in the UK retail business and other markets.

Speaker #1: Turning to Octopus Energy, you can really see that the Octopus brand and service underpin impressive growth. The brand in the UK is a standout market leader, as you can see in that top left.

Frank Calabria: The brand in the UK is a standout market leader, as you can see in that top left, and that is driving their continued growth in the UK market on the top right, where it really is leading the market and has grown another 800,000 customers to have 26% market share. You can see that replicating now through to the non-UK markets, where they now have 4.1 million customer accounts. When we think about energy services, what they are doing there is building an ecosystem of assets and platform that enables them to meet all those customer needs, and that really extends across scaling installations. It is an extra vehicle leasing fleet, and they have grown their VPP to 3.2 gigawatts. The development of that business then links back into continuing to grow value and customers in the UK retail business and other markets, in the markets that are rapidly transitioning.

Speaker #1: And that's driving their continued growth in the UK market, shown on the top right, where it really is leading the market and has gained another 800,000 customers to achieve 26% market share.

Speaker #1: In a markets that are rapidly transitioning. On the next slide for UK retail, really just highlights how we and they think about the business with the UK retail strength.

Frank Calabria: On the next slide for UK retail, really just highlights how we and they think about the business with the UK retail strength, and as Tony said earlier, they have reported their fourth consecutive year of profitability. This year, they earn GBP 39 per customer on that 7.8 million average customers, and that is enabling them to invest in growth. It is funding customer growth that you can see on the dark color on the right-hand bar chart in the non-UK markets. They have invested in smart retail tariffs in the UK, and they have also then invested in their energy services business. Each of these businesses have a strong growth outlook. The brand and service drives customer growth in the UK. When you think about the large addressable market they are now going for across non-UK markets, that represents another significant growth opportunity.

Speaker #1: You can see that replicating now through to the non-UK markets, where they now have 4.1 million customer accounts. And when we think about energy services, what they're doing there is building an ecosystem of assets and a platform that enables them to meet all those customer needs.

Speaker #1: And as Tony said earlier, they've reported their fourth consecutive year of profitability and this year they earned 39 pounds per customer on that 7.8 million average customers.

Speaker #1: And that's enabling them to invest in growth. It's funding customer growth that you can see on the dark color on the right the right hand bar chart in the non-UK markets.

Speaker #1: And that really extends across scaling installations. It's an electric vehicle leasing fleet, and they've grown their VPP to 3.2 gigawatts. The development of that business then links back into continuing to grow value and customers in the UK retail business and other markets.

Frank Calabria: It is an extra vehicle leasing fleet, and they have grown their VPP to 3.2 gigawatts. The development of that business then links back into continuing to grow value and customers in the UK retail business and other markets, in the markets that are rapidly transitioning.

Speaker #1: They've invested in smart retail tariffs in the UK. And they've also then invested in their energy services business. Each of these businesses have a strong growth outlook.

Speaker #1: In markets that are rapidly transitioning, on the next slide for UK retail, it really just highlights how we—and they—think about the business with the UK retail strength.

Speaker #1: The brand and service drives customer growth in the UK. And when you think about the large addressable market, they're now going for across non-UK markets.

Frank Calabria: On the next slide for UK retail, it really just highlights how we and they think about the business with the UK retail strength. As Tony Lucas said earlier, they have reported their fourth consecutive year of profitability. This year, they earn GBP 39 per customer on that 7.8 million average customers, and that is enabling them to invest in growth. It is funding customer growth that you can see on the dark color on the right-hand bar chart in the non-UK markets. They have invested in smart retail tariffs in the UK, and they have also then invested in their energy services business. Each of these businesses have a strong growth outlook. The brand and service drives customer growth in the UK. When you think about the large addressable market they are now going for across non-UK markets, that represents another significant growth opportunity.

Speaker #1: That represents another significant growth opportunity. And what we're seeing now is it's only firmed in fact over the last six months is strong government and customer support for electrification and increased adoption of distributed assets.

Speaker #1: And as Tony said earlier, they've reported their fourth consecutive year of profitability. This year, they earned £39 per customer on an average of 7.8 million customers.

Frank Calabria: What we are seeing now is it is only firmed, in fact, over the last six months, is strong government and customer support for electrification and increased adoption of distributed assets. In the UK, that is in particular electric vehicles. They are catalysts for ongoing growth in the energy services business. Turning to the Kraken business on slide 25. I said earlier, they have got 95 million contracted customer accounts. That growth of 21 million includes the entry into the Saudi market through Saudi Energy Partnership that has added 10 million accounts. Of that 95 million accounts, 52 million are live, and what that means is that they are what is generating revenue, and that translates into the revenue growth you can see on the right-hand chart that has grown by 19% to GBP 300 million.

Speaker #1: And in the UK, that's in particular electric vehicles. They are catalysts for ongoing growth in the energy services business. Now turning to the Kraken business on slide 25, said earlier they've got 95 million contracted to customer accounts.

Speaker #1: And that's enabling them to invest in growth. It's funding customer growth that you can see in the dark color on the right, the right-hand bar chart in the non-UK markets.

Speaker #1: They've invested in smart retail tariffs in the UK, and they've also invested in their energy services business. Each of these businesses has a strong growth outlook.

Frank Calabria: They have invested in smart retail tariffs in the UK, and they have also then invested in their energy services business. Each of these businesses have a strong growth outlook. The brand and service drives customer growth in the UK. When you think about the large addressable market they are now going for across non-UK markets, that represents another significant growth opportunity.

Speaker #1: That growth of 21 million includes the entry into the Saudi market through Saudi Energy Partnership that's added 10 million accounts. And of that 95 million accounts, 52 million alive and what that means is that they're what's generating revenue.

Speaker #1: The brand and service drives customer growth in the UK. And when you think about the large addressable market, they're now going for across non-UK markets.

Speaker #1: And that translates into the revenue growth you can see on the right hand chart that's grown by 19% to 300 million pounds. Clearly they continue to get contract annual revenue growth and the pull throughs of the P&L is really driven by that live revenue.

Speaker #1: That represents another significant growth opportunity. And what we're seeing now is that it's only firmed—in fact, over the last six months, there's been strong government and customer support for electrification and increased adoption of distributed assets.

Frank Calabria: What we are seeing now is it has only firmed, in fact, over the last six months, is strong government and customer support for electrification and increased adoption of distributed assets. In the UK, that is in particular electric vehicles. They are catalysts for ongoing growth in the energy services business. Turning to the Kraken business on Slide 25. As said earlier, they have got 95 million contracted to customer accounts. That growth of 21 million includes the entry into the Saudi market through Saudi Energy partnership that has added 10 million accounts. Of that 95 million accounts, 52 million are live, and what that means is that they are what is generating revenue, and that translates into the revenue growth you can see on the right-hand chart that has grown by 19% to GBP 300 million.

Frank Calabria: Clearly, they continue to get contract annual revenue growth, and the pull-throughs of the P&L is really driven by that live revenue. They are expanding products now. They are really working across now C&I markets, water, telecoms, flexibility, and field services. So that continues to widen their addressable market. In terms of financial results for the Kraken in FY2026, they certainly invested more heavily to accelerate customer migrations. That particularly plays out when you are going into a new market, but also when you are accelerating migration of large accounts that they are bringing on live for live revenue. So those costs, around GBP 64 million, have been incurred ahead of the revenue. What we have done is highlight the EBITDA, with and without those accelerated migration investment costs that you can see on the left-hand chart. There are a number of achievements in FY2026, so I will just draw out a couple.

Speaker #1: And they're expanding products now. They're really working across now CNI markets, water, telecoms, flexibility, and field services. So that continues to widen their addressable market.

Speaker #1: And in the UK, that's in particular the electric vehicles. They are catalysts for ongoing growth in the energy services business. Now, turning to the Kraken business on slide 25, as said earlier, they've got 9.5 million contracted customer accounts.

Speaker #1: In terms of financial results for the Kraken in FY26, they certainly invested more heavily to accelerate customer migrations. That particularly plays out when you are going into a new markets but also when you're accelerating migration of large accounts that they're bringing on live for a live revenue.

Speaker #1: That growth of 21 million includes the entry into the Saudi market through the Saudi Energy Partnership, which has added 10 million accounts. And of that 95 million accounts, 52 million are alive.

Frank Calabria: That growth of 21 million includes the entry into the Saudi market through Saudi Energy partnership that has added 10 million accounts. Of that 95 million accounts, 52 million are live, and what that means is that they are what is generating revenue, and that translates into the revenue growth you can see on the right-hand chart that has grown by 19% to GBP 300 million. Clearly, they continue to get contract annual revenue growth, and the pull-throughs of the P&L is really driven by that live revenue. They are expanding products now.

Speaker #1: And what that means is that they're what's generating revenue. That translates into the revenue growth you can see on the right-hand chart, which has grown by 19% to £300 million.

Speaker #1: And so those costs incurred ahead of the revenue. And what we've done is highlight the EBITDA with and without those accelerated migration investment costs that you can see on the left hand chart.

Speaker #1: Clearly, they continue to get contract annual revenue growth, and the pull-throughs of the P&L are really driven by that live revenue. And they're expanding products now.

Frank Calabria: Clearly, they continue to get contract annual revenue growth, and the pull-throughs of the P&L is really driven by that live revenue. They are expanding products now. They are really working across C&I markets, water, telecoms, flexibility, and field services. So that continues to widen their addressable market. In terms of financial results for the Kraken in FY26, they certainly invested more heavily to accelerate customer migrations. That particularly plays out when you are going into a new market, but also when you are accelerating migration of large accounts that they are bringing on live for live revenue. Those costs, around GBP 64 million, have been incurred ahead of the revenue. What we have done is highlight the EBITDA with and without those accelerated migration investment costs that you can see on the left-hand chart. There are a number of achievements in FY26, so I will just draw out a couple.

Speaker #1: There are a number of achievements in FY26 that I'll just draw out a couple. They grew the contracted annual recurring revenue by 44%. And the average EBITDA margin since 23 even including all of that delivery investment has been 35%.

Speaker #1: They're really working across, now, CNI markets—water, telecoms, flexibility, and field services. So that continues to widen their addressable market. In terms of financial results for Kraken in FY26, they certainly invested more heavily to accelerate customer migrations.

Frank Calabria: They are really working across C&I markets, water, telecoms, flexibility, and field services. So that continues to widen their addressable market. In terms of financial results for the Kraken in FY26, they certainly invested more heavily to accelerate customer migrations. That particularly plays out when you are going into a new market, but also when you are accelerating migration of large accounts that they are bringing on live for live revenue. Those costs, around GBP 64 million, have been incurred ahead of the revenue.

Frank Calabria: They grew the contracted annual recurring revenue by 44%, and the average EBITDA margin since 2023, even including all of that delivery investment, has been 35%. You can see then we have also highlighted what the underlying subscription gross margin is for that business, which is very strong as well. So I will now go to guidance. I am now on slide 28. Energy Markets EBITDA for the 2027 financial year is between AUD 1.55 billion and AUD 1.85 billion. The total CapEx you will see is reduced since this financial year as we complete more of the batteries, and that is between AUD 450 million and AUD 650 million.

Speaker #1: You can see then we've also highlighted what the underlying subscription gross margin is for that business which is very strong as well. So I'll now go to guidance.

Speaker #1: That particularly plays out when you are going into new markets, but also when you're accelerating migration of large accounts that they're bringing on live for live revenue.

Speaker #1: So I'm now on slide 28. Energy markets EBITDA for the 2027 financial year is between 1.55 billion and 1.85 billion. The total capex you'll see is reduced since this financial year as we complete more of the batteries.

Speaker #1: And so, those costs—around £64 million—have been incurred ahead of the revenue. What we've done is highlight the EBITDA with and without those accelerated migration investment costs, which you can see on the left-hand chart.

Frank Calabria: What we have done is highlight the EBITDA with and without those accelerated migration investment costs that you can see on the left-hand chart. There are a number of achievements in FY26, so I will just draw out a couple. They grew the contracted annual recurring revenue by 44%, and the average EBITDA margin since 2023, even including all of that delivery investment, has been 35%. You can see we have also highlighted what the underlying subscription gross margin is for that business, which is very strong as well.

Speaker #1: And that's between 450 and 650 million. We provided the APL and G guidance in our quarterly results but for completeness you can see the guidance on production is between 625 and 670 petajoules.

Speaker #1: There are a number of achievements in FY26. I'll just draw out a couple. They grew the contracted annual recurring revenue by 44%. And the average EBITDA margin since '23, even including all of that delivery investment, has been 35%.

Frank Calabria: We provided the APLNG guidance in our quarterly results, but for completeness, you can see the guidance on production is between 625 and 670 petajoules, and the CapEx and OpEx guidance excluding purchases is between AUD 3 billion and AUD 3.3 billion. We provided guidance here for both Octopus and Kraken. On Octopus, we have guided the UK retail EBITDA per customer, and that is a guidance of between GBP 25 and GBP 50 a customer. I will just make a couple of comments as to why we have chosen that. You would have seen on the earlier slide that really Octopus Energy comprises a number of businesses. One, the ongoing operations and growth of the UK retail business, but then it is making choices as to how fast it invests in non-UK retail and energy services.

Frank Calabria: They grew the contracted annual recurring revenue by 44%, and the average EBITDA margin since 2023, even including all of that delivery investment, has been 35%. You can see we have also highlighted what the underlying subscription gross margin is for that business, which is very strong as well. I will now go to guidance. I am now on slide 28. Energy markets EBITDA for the 2027 financial year is between AUD 1.55 billion and AUD 1.85 billion. The total CapEx you will see is reduced since this financial year as we complete more of the batteries, and that is between AUD 450 million and AUD 650 million.

Speaker #1: And the capex and opex guidance excluding purchases is between 3 and 3.3 billion. We provided guidance here for both Octopus and Kraken on Octopus we've guided the UK retail EBITDA per customer.

Speaker #1: You can see then we've also highlighted what the underlying subscription gross margin is for that business, which is very strong as well. So, I'll now go to guidance.

Speaker #1: And that's a guidance of between 25 and 50 pounds a customer. And I'll just make a couple of comments as to why we've chosen that.

Frank Calabria: I will now go to guidance. I am now on slide 28. Energy markets EBITDA for the 2027 financial year is between AUD 1.55 billion and AUD 1.85 billion. The total CapEx you will see is reduced since this financial year as we complete more of the batteries, and that is between AUD 450 million and AUD 650 million. We provided the APLNG guidance in our quarterly results, but for completeness, you can see the guidance on production is between 625 and 670 petajoules, and the CapEx and OpEx guidance excluding purchases is between AUD 3 billion and AUD 3.3 billion.

Speaker #1: So, I'm now on slide 28. Energy Markets EBITDA for the 2027 financial year is between $1.55 billion and $1.85 billion. The total capex, you'll see, is reduced since this financial year as we complete more of the batteries.

Speaker #1: You would have seen on the earlier side that really Octopus Energy comprises a number of businesses. One, the ongoing operations and growth of the UK retail business.

Speaker #1: But then it's making choices as to how far it how fast it invests in non-UK retail and energy services. And because they do drive a lot of that growth through organic means it goes through the P&L.

Speaker #1: And that's between $450 million and $650 million. We provided the APLNG guidance in our quarterly results, but for completeness, you can see the guidance on production is between 625 and 670 petajoules.

Frank Calabria: Because they do drive a lot of that growth through organic means, it goes through the P&L. So we think it is more meaningful for you to understand the ongoing profitability for UK retail EBITDA, and they will continue to make decisions, based on the way they want to grow those other businesses.

Frank Calabria: We provided the APLNG guidance in our quarterly results, but for completeness, you can see the guidance on production is between 625 and 670 petajoules, and the CapEx and OpEx guidance excluding purchases is between AUD 3 billion and AUD 3.3 billion. We provided guidance here for both Octopus and Kraken. On Octopus, we have guided the UK retail EBITDA per customer, and that is a guidance of between GBP 25 and GBP 50 a customer. I will just make a couple of comments as to why we have chosen that. You would have seen on the earlier slide that Octopus Energy comprises a number of businesses. One, the ongoing operations and growth of the UK retail business, but then it is making choices as to how fast it invests in non-UK retail and energy services. Because they do drive a lot of that growth through organic means, it goes through the P&L.

Speaker #1: So we think it's more meaningful for you to understand the ongoing profitability for UK retail EBITDA and they will continue to make decisions based on the way they want to grow those other businesses.

Speaker #1: And the capex and opex guidance, excluding purchases, is between $3.0 and $3.3 billion. We provided guidance here for both Octopus and Kraken. On Octopus, we've guided the UK retail EBITDA per customer.

Speaker #1: And as more of that information unfolds we're happy to share that but we think this is a more meaningful way of understanding the profitability of the core business.

Tony Lucas: As more of that information unfolds, we are happy to share that, but we think this is a more meaningful way of understanding the profitability of the core business. Secondly, we have now provided guidance on Kraken Revenue, which is growing at greater than 20%, is the guidance for FY27. Just to wrap up, continue to believe we have advantaged assets and capabilities for the energy transition. We have got strong cash flows and returns from Energy Markets and Integrated Gas. We have got global growth potential from two now independent businesses. Pleased with the balance sheet strength. We have declared stable dividends at a good yield, and that continues to position us well to allocate capital to the right opportunities for shareholders over the coming years. On that note, I will now open up the discussion for questions.

Frank Calabria: As more of that information unfolds, we are happy to share that, but we think this is a more meaningful way of understanding the profitability of the core business. Secondly, we have now provided guidance on Kraken Revenue, which is growing at greater than 20%, is the guidance for FY27. Just to wrap up, continue to believe we have advantaged assets and capabilities for the energy transition. We have got strong cash flows and returns from Energy Markets and Integrated Gas. We have got global growth potential from two now independent businesses. Pleased with the balance sheet strength. We have declared stable dividends at a good yield, and that continues to position us well to allocate capital to the right opportunities for shareholders over the coming years. On that note, I will now open up the discussion for questions.

Frank Calabria: We provided guidance here for both Octopus and Kraken. On Octopus, we have guided the UK retail EBITDA per customer, and that is a guidance of between GBP 25 and GBP 50 a customer. I will just make a couple of comments as to why we have chosen that. You would have seen on the earlier slide that Octopus Energy comprises a number of businesses. One, the ongoing operations and growth of the UK retail business, but then it is making choices as to how fast it invests in non-UK retail and energy services.

Speaker #1: And secondly, we've now provided guidance on Kraken revenue which has growing at greater than 20% is the guidance for FY27. And just to wrap up, continue to believe we have advantaged assets and capabilities for the energy transition.

Speaker #1: And that's a guidance of between £25 and £50 per customer. And I'll just make a couple of comments as to why we've chosen that.

Speaker #1: You would have seen on the earlier slide that, really, Octopus Energy comprises a number of businesses. One, the ongoing operations and growth of the UK retail business.

Speaker #1: But then it's making choices as to how far and how fast it invests in non-UK retail and energy services. And because they do drive a lot of that growth through organic means, it goes through the P&L.

Speaker #1: We've got strong cash flows and returns from energy markets and integrated gas. We've got global growth potential between from two now independent businesses. Pleased with the balance sheet strength.

Frank Calabria: Because they do drive a lot of that growth through organic means, it goes through the P&L. We think it is more meaningful for you to understand the ongoing profitability for UK retail EBITDA, and they will continue to make decisions based on the way they want to grow those other businesses. As more of that information unfolds, we are happy to share that, but we think this is a more meaningful way of understanding the profitability of the core business.

Speaker #1: We've declared stable dividends at a good yield. And that continues to position us well to allocate capital to the right opportunities for shareholders over the coming years.

Speaker #1: So, we think it's more meaningful for you to understand the ongoing profitability for UK retail EBITDA, and they will continue to make decisions based on the way they want to grow those other businesses.

Frank Calabria: We think it is more meaningful for you to understand the ongoing profitability for UK retail EBITDA, and they will continue to make decisions based on the way they want to grow those other businesses. As more of that information unfolds, we are happy to share that, but we think this is a more meaningful way of understanding the profitability of the core business. Secondly, we have now provided guidance on Kraken revenue, which is growing at greater than 20%, is the guidance for FY27. Just to wrap up, we continue to believe we have advantaged assets and capabilities for the energy transition. We have strong cash flows and returns from energy markets and integrated gas. We have global growth potential from two now independent businesses. We are pleased with the balance sheet strength.

Speaker #1: So on that note, I will now open up the discussion for questions.

Speaker #1: And as more of that information unfolds, we're happy to share that, but we think this is a more meaningful way of understanding the profitability of the core business.

Speaker #2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Speaker #1: And secondly, we've now provided guidance on Kraken revenue, which is growing at greater than 20%—that's the guidance for FY27. And just to wrap up, we continue to believe we have advantaged assets and capabilities for the energy transition.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two, and if you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Tom Allen from UBS. Please go ahead.

Frank Calabria: Secondly, we have now provided guidance on Kraken revenue, which is growing at greater than 20%, is the guidance for FY27. Just to wrap up, we continue to believe we have advantaged assets and capabilities for the energy transition. We have strong cash flows and returns from energy markets and integrated gas. We have global growth potential from two now independent businesses. We are pleased with the balance sheet strength.

Speaker #2: And if you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Tom Allen from UBS. Please go ahead.

Speaker #3: Good morning. Frank Tony in the board of team. You've noted the strength of the balance sheet and free cash flow in this result. And FY27 group capex looks to be guided materially lower than market expectations.

Speaker #1: We've got strong cash flows and returns from energy markets and integrated gas. We've got global growth potential from two now independent businesses. We're pleased with the balance sheet strength.

Tom Allen: Good morning, Frank, Tony, and the broader team. You have noted the strength of the balance sheet and free cash flow in this result, and FY27 group CapEx looks to be guided materially lower than market expectations. Considering this, the board appears to have erred on the side of conservatism in the final dividend for FY26. Given the strength of the balance sheet, the tailwinds in APLNG cash flows coming through, at least in the H1 this year that you have called out, what are the main upside and downside drivers we should be focused on with respect to the board's discretion on dividends this year? Particularly keen to understand if there are key headwinds that the board is cautious of or whether there is scale growth that Origin wants to pursue.

Speaker #3: So considering this, the board appears to have heard on the side of conservatism in the final dividend for FY26. So given the strength of the balance sheet, the tailwinds in APL and G cash flows, coming through at least in the first half this year that you've called out, what are the main upside and downside drivers we should be focused on with respect to the board's discretion on dividends this year?

Speaker #1: We've declared stable dividends at a good yield, and that continues to position us well to allocate capital to the right opportunities for shareholders over the coming years.

Frank Calabria: We have declared stable dividends at a good yield, and that continues to position us well to allocate capital to the right opportunities for shareholders over the coming years. On that note, I will now open up the discussion for questions.

Speaker #1: So, on that note, I will now open up the discussion for questions.

Speaker #2: Thank you. If you wish to ask a question, please press *1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press *2.

Operator: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2, and if you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Tom Allen from UBS. Please go ahead.

Speaker #3: So particularly keen to understand if there are key headwinds that the board's cautious of or whether there's scale growth at origin wants to pursue.

Speaker #2: And if you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Tom Allen from UBS. Please go ahead.

Speaker #1: Well, thanks. Thanks, Tom. Yeah, we looked quite hard at the dividend this year. I think you'll see that the cash flow is very strong this year on much higher than 100% cash conversion out of energy markets.

Tony Lucas: Thanks, Tom. We looked quite hard at the dividend this year. I think you will see that the cash flow is very strong this year on much higher than 100% cash conversion out of Energy Markets. Really, we wanted to, and we have always stated that we want to keep the dividend, not swing the absolute cents per share around. When we look at the three-year average of the dividend, it is about 70% of adjusted free cash flow. It is about 80% of NPAT. Just given where the cash flow was for the year, we know we will probably end up with some of that working capital swing coming back into next year. We chose to leave the dividend where it is.

Speaker #3: Good morning, Frank. Tony in the broader team. You’ve noted the strength of the balance sheet and free cash flow in its results, and FY27 group capex looks to be guided materially lower than market expectations.

Tom Allen: Good morning, Frank, Tony, and the broader team. You have noted the strength of the balance sheet and free cash flow in this result. FY2027 group CapEx looks to be guided materially lower than market expectations. Considering this, the board appears to have erred on the side of conservatism in the final dividend for FY2026. Given the strength of the balance sheet, the tailwinds in APLNG cash flows coming through, at least in the H1 this year that you have called out, what are the main upside and downside drivers we should be focused on with respect to the board's discretion on dividends this year? Particularly keen to understand if there are key headwinds that the board is cautious of or whether there is scale growth that Origin wants to pursue.

Speaker #1: And really we wanted to and we've always stated that we want to keep the dividend not swing the absolute cents per share around. So when we look at the sort of three-year average of that dividend, it is about 70% of free adjusted free cash flow.

Speaker #3: So, considering this, the Board appears to have erred on the side of conservatism on the final dividend for FY26. Given the strength of the balance sheet, and the tailwinds in APLNG cash flows coming through—at least in the first half this year, as you've called out—what are the main upside and downside drivers we should be focused on with respect to the Board's discretion on dividends this year?

Tom Allen: Given the strength of the balance sheet, the tailwinds in APLNG cash flows coming through, at least in the H1 this year that you have called out, what are the main upside and downside drivers we should be focused on with respect to the board's discretion on dividends this year? Particularly keen to understand if there are key headwinds that the board is cautious of or whether there is scale growth that Origin wants to pursue.

Speaker #1: It's about 80% of NPAT. And so just given where the cash flow was for the year, we know we'll probably end up with some of that working capital swing coming back into next year, we chose to leave the dividend where it is.

Speaker #3: So, particularly keen to understand if there are any key headwinds that the Board's cautious of, or whether there's scale growth that Origin wants to pursue.

Speaker #1: Well, thanks. Thanks, Tom. Yeah, we looked quite hard at the dividend this year. I think you'll see that the cash flow is very strong this year, much higher than 100% cash conversion out of Energy Markets.

Frank Calabria: Thanks, Tom. We looked quite hard at the dividend this year. I think you will see that the cash flow is very strong this year on much higher than 100% cash conversion out of energy markets. Really we wanted to, and we have always stated that we want to keep the dividend, not swing the absolute cents per share around. When we look at the three-year average of the dividend, it is about 70% of adjusted free cash flow. It is about 80% of NPAT. Just given where the cash flow was for the year, we know we will probably end up with some of that working capital swing coming back into next year. We chose to leave the dividend where it is.

Tony Lucas: Thanks, Tom. We looked quite hard at the dividend this year. I think you will see that the cash flow is very strong this year on much higher than 100% cash conversion out of energy markets. Really we wanted to, and we have always stated that we want to keep the dividend, not swing the absolute cents per share around. When we look at the three-year average of the dividend, it is about 70% of adjusted free cash flow. It is about 80% of NPAT.

Speaker #1: I did highlight that we do capex and the lower LNG trading gains in the year 27 and into the year 28 that we expect to move into the lower range of our sort of target range.

Tony Lucas: I did highlight that we do expect with the tail of the CapEx and the lower LNG trading gains into 2027 and into 2028, that we expect to move into the lower range of our target range. Just given where the environment is at the moment, we are probably preferring to be at the lower end of our target range.

Speaker #1: And really, we wanted to, and we've always stated that we want to keep the dividend— not swing the absolute cents per share around. So when we look at the sort of three-year average of the dividend, it is about 70% of adjusted free cash flow.

Speaker #1: And just given where the environment is at the moment, we're probably preferring to be at the lower end of our target range.

Speaker #3: Okay. Thanks, Tony. And then on the outlook for the energy markets division, so you're noting likely moderation in electricity gross profit into FY28 as lower current futures prices flow into regulated pricing.

Tom Allen: Okay. Thanks, Tony. On the outlook for the Energy Markets division, you are noting likely moderation in electricity gross profit into FY28 as lower current futures prices flow into regulated pricing. I would estimate there is about 30% of the FY28 DMO and VDO prices already factored in. Can you comment on how to frame the spread of outcomes for Energy Markets on a two-year view, like the key updrivers and potential downdrivers?

Speaker #1: It's about 80% of impact. And so, just given where the cash flow was for the year, we know we'll probably end up with some of that working capital swing coming back into next year. We chose to leave the dividend where it is.

Tony Lucas: Just given where the cash flow was for the year, we know we will probably end up with some of that working capital swing coming back into next year. We chose to leave the dividend where it is. I did highlight that we do expect with the tail of the CapEx and the lower LNG trading gains into 2027 and into 2028, that we expect to move into the lower range of our target range. Just given where the environment is at the moment, we are probably preferring to be at the lower end of our target range.

Speaker #3: So I'd estimate there's about 30% of the FY28 DMO and video prices already factored in. So can you comment on how to frame the spread of outcomes for energy markets on a two-year view?

Speaker #1: I did highlight that we do expect, with the tail of the capex and the lower LNG trading gains in FY27 and into FY28, that we expect to move into the lower range of our sort of target range.

Frank Calabria: I did highlight that we do expect with the tail of the CapEx and the lower LNG trading gains into 2027 and into 2028, that we expect to move into the lower range of our target range.

Speaker #3: The key updrivers and potential downdrivers.

Speaker #1: Yeah. I think there's probably more like 40% priced into the DMO. But so you'll have a fair indication from the curves of what that number is.

Tony Lucas: Yeah. I think there is probably more like 40% priced into the DMO. You will have a fair indication from the curves of what that number is and then an indication of where the curves are for the balance. The way to think about it is our fixed energy supply cost, so that is really Eraring and the renewables PPAs has been exposed to that absolute price. We buy a lot of the cover for C&I from the market, from swap contracts, so I do not expect that to be flowing through. You could probably broadly use the best market sales number times those deltas on the forward curves to get an indication of where that is heading. There is still 60% to go, and we are looking at the market, and it can obviously move around. People are predicting maybe an El Niño over the summer.

Speaker #1: And just given where the environment is at the moment, we're probably preferring to be at the lower end of our target range.

Tony Lucas: Just given where the environment is at the moment, we are probably preferring to be at the lower end of our target range.

Speaker #1: And then an indication of where the curves are for the balance. And the way to think about it is our sort of fixed energy supply costs.

Speaker #3: Okay, thanks, Tony. And then on the outlook for the Energy Markets division, you're noting likely moderation in electricity gross profit into FY28, as lower current futures prices flow into regulated pricing.

Tom Allen: Okay, thanks, Tony. On the outlook for the energy markets division, you are noting likely moderation in electricity gross profit into FY28, as lower current futures prices flow into regulated pricing. I would estimate there is about 30% of the FY28 DMO and VDO prices already factored in. Can you comment on how to frame the spread of outcomes for energy markets on a two-year view, like the key updrivers and potential downdrivers?

Speaker #1: So that's really a roaring and the renewables PPAs has been exposed to sort of the absolute price. We buy a lot of the cover for CNI from the market from swap contracts.

Speaker #3: So, I'd estimate there's about 30% of the FY28 DMO and video prices already factored in. Can you comment on how to frame the spread of outcomes for energy markets on a two-year view?

Speaker #1: So I don't expect that to be flowing through. So you could probably broadly use the best market sort of sales number times those sort of deltas on the Ford curves to get a sort of indication of where that's heading.

Speaker #3: The key updrivers and potential downdrivers.

Speaker #1: Yeah, I think that's probably more like 40% priced into the DMO, but you'll have a fair indication from the curves of what that number is.

Tony Lucas: Yeah. I think there is probably more like 40% priced into the DMO, but you will have a fair indication from the curves of what that number is, and then an indication of where the curves are for the balance. The way to think about is our fixed energy supply costs, so that is really Eraring and the renewables PPAs has been exposed to that absolute price. We buy a lot of the cover for C&I from the market from swap contracts, so I do not expect that to be flowing through. You could probably broadly use the best market sales number times those deltas on the forward curves to get an indication of where that is heading. Yeah, there is still 60% to go and, we are looking at the market and, it can obviously move around.

Speaker #1: Yeah, there's still 60% to go and we're sort of looking at looking at the market and I can obviously move around people are predicting maybe an El Niño over the summer.

Speaker #1: And then an indication of where the curves are for the balance. And the way to think about it is our sort of fixed energy supply cost.

Speaker #1: So it's still a fair bit to run but you could use those numbers as an indication at the moment.

Tony Lucas: So it's still a fair bit to run, but you could use those numbers as an indication at the moment.

Speaker #1: So, that's really around the renewables PPAs having been exposed to that absolute price. We buy a lot of the cover for C&I from the market from swap contracts.

Speaker #3: Okay. That's clear. And can you just comment on a roaring in particular? Do you expect to undertake the typical annual engine change out that you've done in the third quarter of the calendar year in years gone by?

Tom Allen: Okay. That's clear. Can you just comment on Eraring in particular? Do you expect to undertake the typical annual engine change-out that you've done in the Q3 of the calendar year in years gone by? Now that the government are going to support the ongoing operation of Tomago Smelter, there's a big source of power demand in New South Wales that will now extend beyond December 2028. There's still an uncertain timeline for the commissioning of Snowy 2.0. Keen to understand the potential for Eraring to operate longer than the scheduled exit date at April 2029.

Speaker #1: So I don't expect that to be flowing through. So you could probably broadly use the best market sort of sales number times those sort of deltas on the forward curves to get a sort of indication of where that's heading.

Speaker #3: And now that the government are going to support the ongoing operation of Tomago smelter, there's a big source of power demand in New South Wales that will now extend beyond December 28th.

Tony Lucas: You could probably broadly use the best market sales number times those deltas on the forward curves to get an indication of where that is heading. Yeah, there is still 60% to go and, we are looking at the market and, it can obviously move around. People are predicting maybe an El Niño over the summer, so it's still a fair bit to run, but you could use those numbers as an indication at the moment.

Speaker #3: There's still an uncertain timeline for the commissioning of Snow 2.0. Keen to understand the potential for a roaring to operate longer than the scheduled exit date at April 29th.

Speaker #3: Okay.

Speaker #1: Yeah, there's still 60% to go, and we're sort of looking at the market. It can obviously move around; people are predicting maybe an El Niño over the summer.

Speaker #4: Sure. So look, firstly, our plans aren't any different to the April 29th. That remains the case today. I'll get Andrew to talk a little bit about a roaring and then we can talk a little bit further about the market because you're right to point out there's a few dynamics going on including the announcement today.

Tony Lucas: People are predicting maybe an El Niño over the summer, so it's still a fair bit to run, but you could use those numbers as an indication at the moment.

Frank Calabria: Sure. Look, firstly, our plans aren't any different to the April 2029. That remains the case today. I'll get Andrew to talk a little bit about Eraring, and then we can talk a little bit further about the market, because you're right to point out there's a few dynamics going on, including the announcement today. That's worth reflecting on. So firstly, just to you, Andrew.

Speaker #1: So, it's still a fair bit to run, but you could use those numbers as an indication at the moment.

Speaker #3: Okay, that's cool. And can you just comment on Eraring in particular? Do you expect to undertake the typical annual engine changeout that you've done in the third quarter of the calendar year in years gone by?

Tom Allen: Okay, that's clear. Can you just comment on Eraring in particular? Do you expect to undertake the typical annual engine change-out that you've done in the Q3 of the calendar year in years gone by? Now that the government are going to support the ongoing operation of Tomago Aluminium, that's a big source of power demand in New South Wales that will now extend beyond December 2028. There's still an uncertain timeline for the commissioning of Snowy 2.0. Keen to understand the potential for Eraring to operate longer than the scheduled exit date at April 2029.

Speaker #4: But yeah, that's worth reflecting on. So firstly, just to you, Andrew.

Speaker #3: Yeah. Hi, Tom. So I mean, proved

Speaker #1: for a while that we can flex a roaring pretty well from the 720 megawatt nameplate down to about 180 megawatts. And that's been the way of operating for a while.

Andrew Thornton: Yeah, hi, Tom. I mean, we've proved for a while that we can flex Eraring pretty well from the 720-megawatt nameplate down to about 180 megawatts and-

Speaker #3: And now that the government are going to support the ongoing operation of the Tomago smelter, there's a big source of power demand in New South Wales that will now extend beyond December 28.

Speaker #1: We've actually been having to do less of that recently with the batteries coming in and the mild weather that we've been talking about. We're not going to do any major maintenance.

Andrew Thornton: That's been the way of operating for a while. We've actually been having to do less of that recently with the batteries coming in and the mild weather that we've been talking about. We're not going to do any major maintenance, so the large turnarounds that we've done in the past, that's where every five years or so, but we're still continuing to do all the maintenance you'd want us and you'd expect around to continue reliability through for the next few years. Nothing's really changed from that perspective.

Speaker #3: There's still an uncertain timeline for the commissioning of Snow 2.0. Keen to understand the potential for Eraring to operate longer than the scheduled exit date of April 29th?

Speaker #1: So the large turnarounds that we've done in the past that sort of were every five years or so. But we're still continuing to do all the maintenance you'd want us and you'd expect around to continue reliability through for the next few years.

Speaker #1: Sure. So, look, firstly, our plans aren't any different to April 29th—that remains the case today. I'll get Andrew to talk a little bit about Eraring, and then we can talk a little bit further about the market, because you're right to point out there's a few dynamics going on, including the announcement today.

Speaker #1: So nothing's really changed from that perspective.

Speaker #4: I mean, Tom, you opened up on a broader question about demand growth and clearly see recent announcements, around the additionality or really driven by data centers and that flowing through over time.

Frank Calabria: Tom, you opened up on a broader question about demand growth, and clearly there's a bit playing out. You can see recent announcements around the additionality all really driven by data centers and that flowing through over time. You've got the announcement today, which is really an announcement for government around ongoing support for the Tomago. Clearly we think a bit about that demand growth and how we meet that over time and have to respond to that. We've got the ability to respond to the way we operate Eraring today, and then we have to think a bit about the decisions we make in terms of how we supply the portfolio going forward. But they all go into the mix, Tom. I don't know if you had anything else, Tony.

Speaker #1: But yeah, that's worth reflecting on. So firstly, just to you, Andrew.

Speaker #3: Yeah, hi Tom. So, we've proven for a while that we can flex Eraring pretty well from the 720 megawatt nameplate down to about 180 megawatts.

Andrew Thornton: Yeah. Hi, Tom. I mean, we've proved for a while that we can flex Eraring pretty well from the 720-megawatt nameplate down to about 180 megawatts, and that's been the way of operating for a while. We've actually been having to do less of that recently with the batteries coming in and the mild weather that we've been talking about. We're not going to do any major maintenance, so the large turnarounds that we've done in the past that sort of were every five years or so, but we're still continuing to do all the maintenance you'd want us and you'd expect around to continue reliability through for the next few years. So nothing's really changed from that perspective.

Speaker #4: You've got the announcement today, which is really an announcement for government around ongoing support for the Tomago so clearly we think a bit about that demand growth and how we meet that over time.

Speaker #3: And that's been the way of operating for a while. We've actually been having to do less of that recently, with the batteries coming in and the mild weather that we've been talking about.

Speaker #4: And have to respond to that. We've got the ability to respond to the way we operate a roaring today and then we have to think a bit about the decisions we make in terms of how we supply the portfolio going forward.

Speaker #3: We're not going to do any major maintenance, so the large turnarounds that we've done in the past—that sort of were every five years or so—we won't be doing those. But we're still continuing to do all the maintenance you'd want us and you'd expect, to continue reliability through for the next few years.

Andrew Thornton: We're not going to do any major maintenance, so the large turnarounds that we've done in the past that sort of were every five years or so, but we're still continuing to do all the maintenance you'd want us and you'd expect around to continue reliability through for the next few years. So nothing's really changed from that perspective.

Speaker #4: But they all go into the mix, Tom. I don't know if you had anything else, Tony.

Speaker #1: No, I don't think that covers it.

Tony Lucas: No, I think that covers it.

Speaker #4: That's really the way we think about it. You're right. There's likely to be electricity demand growth and therefore our job is to capture that and create value.

Speaker #3: So, nothing's really changed from that perspective.

Frank Calabria: That's really the way we think about it. You're right, there's likely to be electricity demand growth, and therefore our job is to capture that and create value.

Speaker #1: I mean, Tom, you opened up on a broader question about demand growth, and clearly there's a bit playing out. You can see recent announcements around additionality, really driven by data centers, and that is flowing through over time.

Frank Calabria: I mean, Tom, you opened up on a broader question about demand growth, and clearly there's a bit playing out. You can see recent announcements around the additionality all really driven by data centers and that flowing through over time. You've got the announcement today, which is really an announcement for government around ongoing support for the Tomago. Clearly we think a bit about that demand growth and how we meet that over time and have to respond to that. We've got the ability to respond to the way we operate Eraring today, and then we have to think a bit about the decisions we make in terms of how we supply the portfolio going forward. But they all go into the mix, Tom. I don't know if you had anything else, Tony.

Speaker #3: Okay. Thanks. Tony and Andrew.

Speaker #4: Thanks, Tom.

Tom Allen: Okay. Thanks, Tony and Andrew.

Speaker #2: Thank you. Your next question comes from Robco from Morgan Stanley. Please go ahead.

[Company Representative] (Origin Energy): Thanks, Tom.

Frank Calabria: Thanks, Tom.

Operator: Thank you. Your next question comes from Rob Koh from Morgan Stanley. Please go ahead.

Speaker #1: You've got the announcement today, which is really an announcement from government around ongoing support for Tomago. So clearly, we think a bit about that demand growth and how we meet that over time.

Speaker #5: Good morning. Congratulations on the result. And can I I guess just ask a question about Australian electricity retail? We've had, I guess, a number of regulatory proposals and in Victoria, inevitably there's more requirements for customers on older offers.

Rob Koh: Good morning. Congratulations on the result. Can I guess, just ask a question about Australian electricity retail? We have had, I guess, a number of regulatory proposals in Victoria. Inevitably, there is more requirements for customers on older offers. Is it still the case in your intention to maintain VDO and DMO as a general ceiling on your customer book?

Speaker #1: And we have to respond to that. We've got the ability to respond to the way we operate Origin today, and then we have to think a bit about the decisions we make in terms of how we support the portfolio going forward.

Frank Calabria: We've got the ability to respond to the way we operate Eraring today, and then we have to think a bit about the decisions we make in terms of how we supply the portfolio going forward. But they all go into the mix, Tom. I don't know if you had anything else, Tony.

Speaker #5: Is it still the case and your intention to maintain video and DMO as a general ceiling on your customer book?

Speaker #1: But they all go into the mix, Tom. I don't know if you had anything else, Tony.

Speaker #3: No, I don't think that covers it.

Tony Lucas: No, I don't think it covers it.

Speaker #1: That's really the way we're thinking about it. You're right. There's likely to be electricity demand growth, and therefore our job is to capture that and create value.

Frank Calabria: That's really the way we think about it. You're right, there's likely to be electricity demand growth, and therefore our job is to capture that and create value.

Speaker #6: Yeah. Good day, Rob. It's John here. We've got a broad spectrum of products and customers sitting across those different products. And we will continue to have that.

Jon Briskin: Yeah. Good day, Rob. It's Jon here. We've got a broad spectrum of products and customers sitting across those different products, and we will continue to have that. We may, in fact, have customers that achieve other types of benefits like, for example, higher solar feed-in tariffs that may actually sit above those tariffs. We look at that as we sort of think through all of our products. As you know, we also let customers know, across each of the bills, whether they can be on a better offer. What we're trying to do over time is just continue to offer them value-add multiproduct services. Yeah, don't think about that as an absolute ceiling, but it's absolutely a guide.

Speaker #3: Okay, thanks. Tony and Andrew.

Tom Allen: Okay. Thanks. Thanks, Tony and Andrew.

Speaker #1: Thanks, Tom.

Frank Calabria: Thanks, Tom.

Speaker #2: Thank you. Your next question comes from Robco at Morgan Stanley. Please go ahead.

Speaker #6: We may, in fact, have customers that achieve other types of benefits like, for example, higher solar feed-in tariffs that may actually sit above those tariffs.

Operator: Thank you. Your next question comes from Rob Koh from Morgan Stanley. Please go ahead.

Speaker #4: Good morning. Congratulations on the result. Can I just ask a question about Australian electricity retail? We've had, I guess, a number of regulatory proposals, and in Victoria, inevitably, there are more requirements for customers on older offers.

Rob Koh: Good morning. Congratulations on the result. Can I guess, just ask a question about Australian electricity retail? We've had, I guess, a number of regulatory proposals in Victoria. Inevitably, there's more requirements for customers on older offers. Is it still the case in your intention to maintain VDO and DMO as a general ceiling on your customer book?

Speaker #6: So we look at that as we sort of think through all of our products. As you know, we also let customers know across each of the bills whether they could be on a better offer and what we're trying to do over time is just continue to offer them value-add multi-product services.

Speaker #6: So yeah, I don't think about that as an absolute ceiling, but it's absolutely a guide.

Speaker #4: Is it still the case, and your intention, to maintain video and DMO as a general ceiling on your customer book?

Speaker #5: Okay. Thanks, Mr. Briskin. I guess the ACCC is going to be focused a lot more on this and something like 38% of top three customers were above DMO at their last review.

Speaker #5: Yeah, good day, Rob. It's John here. We've got a broad spectrum of products, and customers sitting across those different products, and we will continue to have that.

Rob Koh: Okay. Thanks, Mr. Briskin. I guess the ACCC is going to be focused a lot more on this and something like 38% of top three customers were above DMO at their last review. Yeah, just wondering specifically if you're changing your settings against that backdrop.

Jon Briskin: Yeah. Good day, Rob. It's Jon here. We've got a broad spectrum of products and customers sitting across those different products, and we will continue to have that. We may, in fact, have customers that achieve other types of benefits like, for example, higher solar feed-in tariffs that may actually sit above those tariffs. We look at that as we sort of think through all of our products. As you know, we also let customers know, across each of the bills, whether they could be on a better offer. What we're trying to do over time is just continue to offer them value-add multi-product services. Don't think about that as an absolute ceiling, but it's absolutely a guide.

Speaker #5: So yeah, just wondering specifically if you're changing your settings against that backdrop.

Speaker #5: We may, in fact, have customers achieve other types of benefits, like, for example, higher solar feed-in tariffs that may actually sit above those tariffs.

Speaker #6: Oh, I mean, Rob, we're always mindful about it is a competitive market and we continue to make sure we're passing through all the sort of lower costs that we can and particular as we lower the cost of the retail business.

Speaker #5: So we look at that as we sort of think through all of our products. As you know, we also let customers know across each of the bills whether they can be offered an offer.

Jon Briskin: Rob, we're always mindful about, it is a competitive market, and we continue to make sure we're passing through all the sort of lower costs that we can, and particularly as we lower the cost of the retail business. I don't think I can sort of add more, to be honest, around where regulation may go other than to say that I think we're in a good position being a lowest cost provider, having a great brand, and continuing to offer good products.

Speaker #5: What we're trying to do over time is to continue to offer them value-added, multiple products and services. So, yeah, I don't think about that as an absolute ceiling, but it's absolutely a guide.

Jon Briskin: What we're trying to do over time is just continue to offer them value-add multi-product services. Don't think about that as an absolute ceiling, but it's absolutely a guide.

Speaker #6: Yeah, I don't think I can sort of add more to be honest around where regulation may go other than to say that I think we're in a good position being a low-cost, lowest cost provider, having a great brand and continuing to offer good products.

Speaker #4: Okay, thanks, Mr. Briskin. I guess the HCCC is going to be focused a lot more on this and something like 38% of top three customers that were above DMO at their last review.

Rob Koh: Okay. Thanks, Mr. Briskin. I guess the ACCC is going to be focused a lot more on this and something like 38% of top three customers were above DMO at their last review. Just wondering, specifically if you are changing your settings against that backdrop.

Speaker #5: Yeah. Yeah. We're doing something right with the customer growth. So moving to the Kraken just wondering how we think about the Kraken technologies kind of revenue and EBITDA in the past.

Rob Koh: Well, you're doing something right with the customer growth. Moving to the Kraken. Just wondering how we think about the Kraken Technologies kind of revenue and EBITDA. In the past, we've talked about kind of GBP 6 per live sub. I think we've done 6.19, and rule of 40. I know those were only ever rules of thumb, but any extra color you could provide on thinking about that?

Speaker #4: So, yeah, just wondering specifically if you're changing your settings against that backdrop.

Speaker #5: Oh, I mean, Rob, we're always mindful about— it is a competitive market and we continue to make sure we're passing through all the sort of lower costs that we can, and particularly as we lower the cost of the retail business.

Jon Briskin: Rob, we are always mindful about it is a competitive market, and we continue to make sure we are passing through all the lower costs that we can, and particularly as we lower the cost of the retail business. I do not think I can add more, to be honest, around where regulation may go other than to say that, I think we are in a good position being a lowest cost provider, having a great brand and continuing to offer good products.

Speaker #5: We've talked about kind of £6 per live sub. I think you've done £6.19. And Rule of 40. Are those and I know those were only ever rules of thumb, but any extra color you could provide on thinking about that?

Speaker #5: Yeah, I don't think I can add much more, to be honest, around where regulation may go, other than to say that I think we're in a good position: being a low-cost, lowest-cost provider, having a great brand, and continuing to offer good products.

Speaker #4: Well, I think those rules of thumb remain appropriate. Rob, what you can see now is just as they move into more growth and more migrations you've got a bit of lumpiness as they implement those and they'll come in because you don't generate the revenue till you migrate the customers.

Frank Calabria: Well, I think those rules of thumb remain appropriate, Rob Koh. What you can see now is just as they move into more growth and more in migrations, you have a bit of lumpiness as they implement those, and they will come in because you do not generate the revenue until you migrate the customers. That was the only idea of just trying to guide that last 6 months. But in terms of the contracted, you would look at a couple of things. You look at contracted revenue growing, pull-through, and timing of live revenue will probably drive that. But the underlying margin and pricing for those customers, I think still remains appropriate. I do not think anything has shifted in terms of how they think about the business.

Speaker #4: Yeah, yeah. We're doing something right with the customer. So, moving to Kraken, just wondering how we think about the Kraken Technologies’ kind of revenue and EBITDA in the past.

Speaker #4: And I'd really that was the only idea of just sort of trying to guide that last six months. But in terms of the contracted you'd look at a couple of things, you look at contracted revenue growing pull through and timing of live revenue will probably drive that.

Rob Koh: Well, you are doing something right with the customer growth. Moving to the Kraken. Just wondering how we think about the Kraken Technologies kind of revenue and EBITDA. In the past, we have talked about kind of GBP 6 per live sub. I think we have done GBP 6.19, and rule of 40. I know those were only ever rules of thumb, but any extra color you could provide on thinking about that?

Speaker #4: But the underlying margin and pricing for those customers I think still remains appropriate. And so I don't think anything shifted in terms of how they think about the business.

Speaker #4: We've talked about $6,000 per live sub and $6,900, and rural $40. Are those—and I know those were—any of the rules of thumb, but are any of your colleagues providing thinking about that?

Speaker #5: Okay. Okay. That's super helpful. And then just within the Octopus Energy side, there's that energy services team. And I think correct me if I'm wrong.

Speaker #1: Those rules of thumb remain appropriate. Rob, what you can see now is, just as they move into more growth and more migrations, you've got a bit of lumpiness as they implement those, and they'll come in because you don't generate the revenue till you migrate the customers.

Rob Koh: Okay. That is super helpful. Then just within the Octopus Energy side, there is that energy services team, and I think you. Correct me if I am wrong, I think you said they were kind of heading towards breakeven.

Jon Briskin: Well, I think those rules of thumb remain appropriate, Rob. What you can see now is just as they move into more growth and more in migrations, you have got a bit of lumpiness, as they implement those and they will come in because you do not generate the revenue till you migrate the customers, and that was the only idea of just trying to guide that last six months. But in terms of the contracted, you would look at a couple of things. You look at contracted revenue growing, pull-through, and timing of live revenue will probably drive that. But the underlying margin and pricing for those customers, I think still remains appropriate. I do not think anything has shifted in terms of how they think about the business.

Speaker #5: I think you said they were kind of heading towards break even. Should we be thinking that that's just a function of a heat pump installs or I'm sure it's more complicated than that, but just to draw out the underlying trend?

Speaker #1: And really, that was the only idea—just sort of trying to guide that last six months. But in terms of the contracted, you'd look at a couple of things: you'd look at contracted revenue growing, pull-through, and timing of live revenue will probably drive that.

Jon Briskin: Yeah.

Frank Calabria: Yeah.

Rob Koh: Should we be thinking that that is just a function of heat pump installs? I am sure it is more complicated than that, but just to draw out the underlying trend.

Speaker #4: They made quite a bit of improvement this year and we'd expect further improvement. It's both scale and operational efficiency. And they've been it's both those leaders.

Jon Briskin: They made quite a bit of improvement this year, and we would expect further improvement. It is both scale and operational efficiency, and it is both those levers. They have certainly achieved benefits as more smart meters and installation of assets has occurred over time, and that has pulled through unit economics benefits. But also they have really worked hard on the operating model in an installation business, and they made a lot of improvements there. So it is going to be through both of those.

Frank Calabria: They made quite a bit of improvement this year, and we would expect further improvement. It is both scale and operational efficiency, and it is both those levers. They have certainly achieved benefits as more smart meters and installation of assets has occurred over time, and that has pulled through unit economics benefits. But also they have really worked hard on the operating model in an installation business, and they made a lot of improvements there. So it is going to be through both of those.

Jon Briskin: You look at contracted revenue growing, pull-through, and timing of live revenue will probably drive that. But the underlying margin and pricing for those customers, I think still remains appropriate. I do not think anything has shifted in terms of how they think about the business.

Speaker #1: But the underlying margin and pricing for those customers, I think, still remains appropriate. And so I don't think anything has shifted in terms of how they think about the business.

Speaker #4: They've certainly achieved benefits as more smart meters and installation of assets has occurred over time. And that's pulled through unit economics benefits. But also they've really worked hard on the operating model in an installation business and they made a lot of improvements there.

Speaker #4: Okay, that's super helpful. And then, just within the Octopus Energy side, there's that energy services team. And if I'm not wrong, I think you said they were kind of heading towards break-even.

Rob Koh: Okay. That is super helpful. Just within the Octopus Energy side, there is that energy services team, and correct me if I am wrong, I think you said they were kind of heading towards breakeven.

Speaker #4: So it's going to be through both of those. And pleasingly, you continue to see good support for that electrification agenda and the growth of those distributed assets.

Frank Calabria: And pleasingly, you continue to see good support for that electrification agenda, and the growth of those distributed assets. So those market signals, if anything, over time have only strengthened. But they are the two levers that are really got to go into it. You have got to do both to get the improvements they want, and that is what they are working on.

Speaker #4: Should we be thinking that that's just a function of heat pump installs, or—I'm sure it's more complicated than that—but just to draw out the underlying trend?

Speaker #4: So those market signals, if anything, over time have only strengthened. But they're the two levers that are really going to go into it. You've got to do both to get the improvements they want and that's what they're working on.

Jon Briskin: Yeah.

Rob Koh: Should we be thinking that that is just a function of heat pump installs? I am sure it is more complicated than that, but just to draw out the underlying trend.

Speaker #1: They made quite a bit of improvement this year, and we'd expect further improvement. It's both scale and operational efficiency, and it's both those levers.

Jon Briskin: Well, they made quite a bit of improvement this year, and we would expect further improvement. It is both scale and operational efficiency, and it is both those levers. They have certainly achieved benefits as more smart meters and installation of assets has occurred over time, and that has pulled through unit economics benefits. They have really worked hard on the operating model in an installation business, and they made a lot of improvements there. So it is going to be through both of those. Pleasingly, you continue to see good support for that electrification agenda, and the growth of those distributed assets. So those market signals, if anything, over time, have only strengthened. But they are the two levers that have really got to go into it. You have got to do both to get the improvements they want, and that is what they are working on.

Speaker #5: Great. Thank you so much.

Rob Koh: Great. Thank you so much.

Speaker #1: They've certainly achieved benefits as more smart meters and installation of assets have occurred over time, and that's pulled through unit economics benefits. But also, they've really worked hard on the operating model in an installation business, and they've made a lot of improvements there.

Speaker #2: Thank you. Your next question comes from Ian Miles from Macquarie. Please go ahead.

Operator: Thank you. Your next question comes from Ian Myles from Macquarie. Please go ahead.

Speaker #7: Hi, guys. Thanks for the questions. Look, just on the energy market side, can we just talk a little bit more about the gas side of the business?

Ian Myles: Hi, guys. Thanks for the questions. Look, just on the Energy Markets side, can we just talk a little bit more about the gas side of the business? You did really well this period, but we are seeing gas pricing falling, the government reservation scheme potentially pushes the market into oversupply. Are you resilient to that or do you face pressures on the gas side as well?

Speaker #7: You did really well this period, but we're seeing gas pricing falling. The government reservation scheme potentially pushes the market into oversupply. How do you or are you resilient to that or do you face pressures on the gas side as well?

Speaker #1: So, it's going to be through both of those. And, pleasingly, you continue to see good support for that electrification agenda and the growth of those distributed assets.

Jon Briskin: Pleasingly, you continue to see good support for that electrification agenda, and the growth of those distributed assets. So those market signals, if anything, over time, have only strengthened. But they are the two levers that have really got to go into it. You have got to do both to get the improvements they want, and that is what they are working on.

Speaker #1: So those market signals, if anything, over time have only strengthened. But they're the two levers that are really going to go into it. You've got to do both to get the improvements they want, and that's what they're working on.

Speaker #4: I wanted, Tony, you talk a little bit about gas outlook.

Speaker #8: I'll sort of give you a bit of the sort of energy markets, I guess, gas outlook. We've sort of been to 27 versus AL.

Frank Calabria: Why don't you, Tony, you talk a little bit about gas outlook.

Tony Lucas: Yeah. Maybe I'll sort of give you a bit of the Energy Markets, I guess, gas outlook. We're sort of into 2027, versus our 2026 result, we'd expect it to be maybe broadly the same, maybe just sort of slightly lower. In terms of margin, we're finding that there's sort of maybe a slight rotation out of, say, domestic gas use into power, but it's very low at the moment. What we're tending to find is we're just getting lower volumes really through power generation probably at the moment that have not much of a margin impact in the Energy Markets gas book, because we don't put a lot of margin into the gas book from power sales. At the moment, that's proving to be pretty resilient. Maybe I'll hand to Frank for the reservation.

Speaker #4: Yeah, great. Thank you so much.

Speaker #2: Thank you. Your next question comes from Ian Miles from Macquarie. Please go ahead.

Speaker #8: 26 result. We'd expect it to be maybe broadly the same sort of maybe just sort of slightly lower. In terms of margin, we're finding that there's sort of maybe a slight rotation out of, say, domestic gas use into power, but it's very low at the moment.

Rob Koh: Great. Thank you so much.

Operator: Thank you. Your next question comes from Ian Myles from Macquarie. Please go ahead.

Speaker #6: Hi, guys. Thanks for the questions. Look, just on the energy market side—can we just talk a little bit more about the gas side of the business?

Ian Myles: Hi, guys. Thanks for the questions. Look, just on the energy market side, can we just talk a little bit more about the gas side of the business? You did really well this period, but we are seeing gas pricing falling. The government reservation scheme potentially pushes the market into oversupply. Are you resilient to that, or do you face pressures on the gas side as well?

Speaker #6: You did really well this period, but we're seeing gas pricing fall. The government reservation scheme potentially pushes the market into oversupply. How do you, or are you, resilient to that, or do you face pressures on the gas side as well?

Speaker #8: What we're tending to find is we're just getting lower volumes really through power generation, probably at the moment that have not much of a margin impact in the energy markets gas book because we don't put a lot of margin into the gas book from power sales.

Speaker #1: I want to turn to you to talk a little bit about the gas outlook.

Speaker #7: I'll give you a bit of that sort of energy markets, I guess, gas outlook. We've sort of been to 2027 versus AL.

Frank Calabria: Why don't you, Tony, you talk a little bit about gas outlook and-

Tony Lucas: Yeah, maybe, Ian, I will sort of give you a bit of the sort of energy markets, I guess, gas outlook. We sort of into 2027, versus our 2026 result. We would expect it to be maybe broadly the same, maybe just sort of slightly lower. In terms of margin, we are finding that there is sort of maybe a slight rotation out of, say, domestic gas use into power, but it is very low at the moment. What we are tending to find is we are just getting lower volumes really through power generation probably at the moment that have not much of a margin impact in the energy markets gas book, because we put a lot of margin into the gas book from power sales. So yeah, at the moment, that is proving to be pretty resilient. Maybe I will hand to Frank for the reservation.

Speaker #8: So at the moment, that's proving to be pretty resilient. Maybe I'll hand to Frank for the reservation.

Speaker #7: 2026 result, we'd expect it to be maybe broadly the same sort of maybe just sort of slightly lower. In terms of margin, we're finding that there's sort of maybe a slight rotation out of, say, domestic gas use into power, but it's very low at the moment.

Speaker #4: Yeah, just on the gas market review, we've been supportive for a well-designed one. And that really means that it needs to operate in a fashion that gives certainty over a bit longer time rather than an annual discretion.

Frank Calabria: Yeah, just on the gas market review, we've been supportive for a well-designed one. That really means that it needs to operate in a fashion that gives certainty over a bit longer time rather than an annual discretion. So that's where we really are focused, and it should be calibrated to demand, which has got a lot of independent data, as you'd know, Ian, through AER, AEMO, everyone, they sort of know everything about the gas market. So those would be good features that we think, if it's to achieve the objective of modest oversupply. So we're really focused on that and equitable contribution between players, but really that ability to actually not be subject to an annual discretion that creates uncertainty, because that's not going to drive certainty for investment, but it also won't drive certainty for contracting by the large customers.

Speaker #4: So that's where we really are focused and it should be calibrated to demand. Which has got a lot of independent data, as you'd know, Ian, through AAR, AIMO, everyone.

Speaker #7: What we're tending to find is we're just getting lower volumes really through power generation, probably at the moment. That has not much of a margin impact in the Energy Markets Gas book, because we don't put a lot of margin into the Gas book from power sales.

Speaker #4: They sort of know everything about the gas market. So those would be good features that we think. If it's to achieve the objective of modest oversupply, so we're really focused on that and equitable contribution between players.

Tony Lucas: What we are tending to find is we are just getting lower volumes really through power generation probably at the moment that have not much of a margin impact in the energy markets gas book, because we put a lot of margin into the gas book from power sales. So yeah, at the moment, that is proving to be pretty resilient. Maybe I will hand to Frank for the reservation.

Speaker #7: So, at the moment, that's proving to be pretty resilient. Maybe I'll hand to Frank for the reservation.

Speaker #4: But really that ability to actually not be subject to an annual discretion that creates uncertainty because that's not going to drive certainty for investment, but it also won't drive certainty for contracting by the large customers.

Speaker #1: Yeah, just on the gas market review, we've been supportive of a well-designed one. And that really means that it needs to operate in a fashion that gives certainty over a bit longer time, rather than on an annual discretion.

Frank Calabria: Yeah, just on the gas market review, we have been supportive for a well-designed one. That really means that it needs to operate in a fashion that gives certainty over a bit longer time rather than an annual discretion. So that is where we really are focused, and it should be calibrated to demand, which has got a lot of independent data as you would know, Ian, through AER, AEMO, everyone, they sort of know everything about the gas market. So those would be good features that we think, if it is to achieve the objective of modest oversupply. We are really focused on that and equitable contribution between players, but really that ability to actually not be subject to an annual discretion that creates uncertainty, because that is not going to drive certainty for investment, but it also will not drive certainty for contracting by the large customers.

Speaker #4: So that's where we're focused on. And we're just continuing to advocate for it. Clearly, there's yeah.

Frank Calabria: That's where we're focused on, and we just continue to advocate for it. Clearly there's

Speaker #7: Just see there's risk to the downside there in terms of the profitability out of that business. Given the way the government's pushing it.

Speaker #1: So that's where we really are focused, and it should be calibrated to demand, which has got a lot of independent data, as you'd know, Ian, through AER, AEMO, everyone.

Ian Myles: Do you see there is risk to the downside there in terms of the profitability out of that business, given the way the government is pushing it?

Speaker #4: Well, gas prices, effectively, gas prices, and Tony can talk to that, they've been pretty modest over the last year in the domestic market. So reasonably resilient, but we should add some color to that.

Frank Calabria: Well, gas prices, effectively gas prices, and Tony can talk to that, they have been pretty modest over the last year in the domestic market, so reasonably resilient, but we should add some color to that.

Speaker #1: They sort of know everything about the gas market, so those would be good features that we think. If it's to achieve the objective of modest oversupply, we're really focused on that and equitable contribution between players.

Frank Calabria: So those would be good features that we think, if it is to achieve the objective of modest oversupply. We are really focused on that and equitable contribution between players, but really that ability to actually not be subject to an annual discretion that creates uncertainty, because that is not going to drive certainty for investment, but it also will not drive certainty for contracting by the large customers. That is where we are focused on, and we just continue to advocate for it. Clearly there is

Speaker #5: Yeah. I mean, I think it's sort of a fine balance, I think, for the government to put supply into the domestic market and then get the right sort of gas price.

Tony Lucas: Yeah, I think it is sort of a fine balance, I think, for the government to put supply into the domestic market and then get the right sort of gas price. If you think about the sort of level of coal that is coming out of the market and sort of the price of renewables, the last thing you do is want to incentivize base load running a gas, because that price sort of differential heads in that direction. So I think it is sort of finely balanced. The gas book in the short-term is a bit resilient to it. Ultimately, the Energy Markets gas book does benefit from long-term fixed pricing, so that does have a benefit from sort of slightly higher pricing, but then a reasonable amount of it is margin driven.

Speaker #1: But really, that ability to actually not be subject to an annual discretion, that creates uncertainty, because that's not going to drive certainty for investment— but it also won't drive certainty for contracting by the large customers.

Speaker #5: If you think about the sort of level of coal that's coming out of the market and sort of the price of renewables, it's not the last thing you do is want to incentivize base load running a gas.

Speaker #1: So that's where we're focused on, and we just continue to advocate for it. Clearly, there's—yeah.

Jon Briskin: That is where we are focused on, and we just continue to advocate for it. Clearly there is

Speaker #6: I just see there's risk to the downside there in terms of the profitability out of that business, given the way the government's pushing it.

Speaker #5: Because that price sort of differential heads in that direction. So I think it is sort of finally balanced. The gas book in the short term's a bit resilient to it.

Ian Myles: Do you see there is risk to the downside there in terms of the profitability out of that business, given the way the government is pushing it?

Speaker #1: Well, gas prices—effectively, gas prices, and Tony can speak to that—they've been pretty modest over the last year in the domestic market. So, reasonably resilient, but we should add some color to that.

Speaker #5: Ultimately, the energy markets gas book does benefit from long-term fixed pricing. So that does have a benefit from sort of slightly higher pricing. But then a lot of a reasonable amount of it is margin-driven.

Frank Calabria: Well, effectively gas prices, and Tony Lucas can talk to that, they have been pretty modest over the last year in the domestic market, so reasonably resilient, but we should add some color to that.

Speaker #7: Yeah, I mean, I think it's sort of a fine balance, I think, for the government to put supply into the domestic market and then get the right sort of gas price.

Tony Lucas: Yeah. I think it is a fine balance for the government to put supply into the domestic market and then get the right gas price. If you think about the level of coal that is coming out of the market and the price of renewables, the last thing you do is want to incentivize base load running a gas, because that price differential heads in that direction. I think it is finely balanced. The gas book in the short term is a bit resilient to it. Ultimately, the energy markets gas book does benefit from long-term fixed pricing, so that does have a benefit from slightly higher pricing. A reasonable amount of it is margin-driven. I think there is still a lot to play in gas reservation and how indigenous supply can be also incentivized to come into the market over the medium and long term.

Speaker #5: So I think there's still a lot to play in gas reservation. And how, I guess, indigenous supply can be also incentivized to come into the market over the medium and long term.

Tony Lucas: I think there is still a lot to play in gas reservation and how, I guess, indigenous supply can be also incentivized to come into the market over the medium and long term.

Speaker #7: If you think about the sort of level of coal that's coming out of the market, and sort of the price of renewables, the last thing you want to do is incentivize baseload running on gas.

Speaker #4: Ian, I'd just add one other and obviously getting the designer, that's right. And that's an important. Outcome to the a well-functioning market. So whilst it remains that outstanding, that's a key look through as to when we get the design for that, which will be out in the coming weeks and months.

Speaker #7: Because that price differential heads in that direction. So I think it is finely balanced. The gas book, in the short term, is a bit resilient to it.

Frank Calabria: Ian, I would just add one other thing, and obviously getting the designer that is right, and that is an important outcome to a well-functioning market. So whilst remains that outstanding, that is a key look-through as to when we get the design for that, which will be out in the coming weeks and months.

Speaker #7: Ultimately, the Energy Markets gas book does benefit from long-term fixed pricing, so that does have a benefit from slightly higher pricing. But then, a reasonable amount of it is margin-driven.

Speaker #7: Okay. Let's see, Rosa, other interesting issue. With the rowing, is there a decision date or is there a point where there's no going back?

Ian Myles: Okay. Actually raise the other interesting issue. With Eraring, is there a decision date or is there a point where there is no going back, that you have reached a stage in its life cycle that you cannot actually extend the life?

Tony Lucas: Ultimately, the energy markets gas book does benefit from long-term fixed pricing, so that does have a benefit from slightly higher pricing. A reasonable amount of it is margin-driven. I think there is still a lot to play in gas reservation and how indigenous supply can be also incentivized to come into the market over the medium and long term.

Speaker #7: That you reach a stage and it's life cycle that you can't actually extend the life?

Speaker #7: So, I think there's still a lot to play out in gas reservation and how, I guess, indigenous supply can also be incentivized to come into the market over the medium and long term.

Speaker #4: I think there will always be a date because you'll be making forward-looking decisions. We haven't reached that date. And just further the comment, a question earlier, I think it came from Tom or someone else that asked about, "Are you doing large overhauls and when do you get to that point?" So we've indicated we're not going to do one this year.

Frank Calabria: Well, I think there will always be a date because you will be making forward-looking decisions. We have not reached that date. And just further the comment, a question earlier, I think it came from Tom or someone else that asked about, are you doing large overhauls and when do you get to that point? So we have indicated we are not going to do one this year. We are continuing to maintain. But we have to assess that in an ongoing way and to make sure that we. There will need to be forward-looking, and so I think there will be a time in advance of 29 April where we will have to make a call. But at the moment, the plan really is the one we had articulated previously. We will continue to maintain no large overhauls, but we will have to assess that through time.

Speaker #1: Ian, I'd just add one other—and obviously getting the design of that right is important. That's an important outcome to a well-functioning market. So, whilst it remains outstanding, that's a key look-through as to when we get the design for that, which will be out in the coming weeks and months.

Frank Calabria: Ian, I would just add one other thing. Obviously getting the design of that right, that is an important outcome to a well-functioning market. Whilst it remains that outstanding, that is a key look-through as to when we get the design for that, which will be out in the coming weeks and months.

Speaker #4: We're continuing to maintain but we have to assess that in an ongoing way. And to make sure that we there will need to be forward-looking.

Speaker #4: And so I think there will be a time in advance of April 29 where we'll have to make a call. But at the moment, the plan really is the one we've articulated previously.

Speaker #6: Okay. Actually, Rosa, another interesting issue. With the raring, is there a decision date, or is there a point where there's no going back? That you reach a stage in its life cycle where you can't actually extend the life?

Ian Myles: Okay. It actually raised other interesting issue. With Eraring, is there a decision date or is there a point where there is no going back, that you reach a stage in its life cycle that you cannot actually extend the life?

Speaker #4: We'll continue to maintain no large overhauls but we'll have to assess that through time. But yes, that would be I won't put a precise timing on it, but it's certainly going to be in advance.

Speaker #1: Oh, I think there will always be a date, because you'll be making forward-looking decisions. We haven't reached that date. And just to further the comment—a question earlier, I think it came from Tom or someone else that asked about whether you are doing large overhauls and when you get to that point.

Frank Calabria: But yes, that would be, I will not put a precise timing on it, but it is certainly going to be in advance. You would think about that in respect of both capital decisions and probably also people decisions and everything we give certainty to it, and I think that has worked well to date, but we have to continue to think about things in advance. We just have not hit that point yet. Yeah.

Frank Calabria: I think there will always be a date because you will be making forward-looking decisions. We have not reached that date. Just further the question earlier, I think it came from Tom or someone else that asked about, are you doing large overhauls and when do you get to that point? We have indicated we are not going to do one this year. We are continuing to maintain. But we have to assess that in an ongoing way and to make sure that they will need to be forward-looking. I think there will be a time in advance of April 2029 where we will have to make a call. But at the moment, the plan really is the one we have articulated previously. We will continue to maintain, no large overhauls. But we will have to assess that through time.

Speaker #4: You think about that in respect of both capital decisions and probably also people decisions and everything we give certainty to it. And I think that's worked well today, but we have to continue to think about things in advance.

Speaker #1: So, we've indicated we're not going to do one this year. We're continuing to maintain, but we have to assess that in an ongoing way.

Speaker #4: We just haven't hit that point yet. Yeah.

Speaker #7: Is it fair to think it's a 12-month sort of lead time or is it even longer than that?

Ian Myles: Is it fair to think it is a 12 months sort of lead time, or is it even longer than that?

Speaker #1: And to make sure that we are, there will need to be forward-looking. And so I think there will be a time in advance of April 29 where we'll have to make a call.

Speaker #4: I might be I won't be it might be a little bit longer than that. It might be a little bit long it might be a little bit longer than that.

Frank Calabria: It might be a little bit longer than that. I don't have a precise time, but I would probably—

Speaker #4: I don't have a precise time, but I probably have I mean, I don't know. If I was guessing, 18 months. You know what I mean?

Speaker #1: But at the moment, the plan really is the one we've articulated previously. We'll continue to maintain—no large overhauls—but we'll have to assess that through time.

Ian Myles: Yeah

Frank Calabria: I probably have, I don't know, if I was guessing 18 months, you know what I mean?

Speaker #4: But I mean, I wouldn't like 18 months in the model or anything. You know what I mean? That's a but essentially, if you're looking for the fact that if you're doing anything with a large asset and you forward planning, if you're thinking about 12 months and you wanted to make a decision, you just wouldn't want to put you wouldn't want to put that on critical path if you had to do it.

Frank Calabria: But at the moment, the plan really is the one we have articulated previously. We will continue to maintain, no large overhauls. But we will have to assess that through time. Yes, that would be, I will not put a precise timing on it, but it is certainly going to be in advance. You would think about that in respect of both capital decisions and probably also people decisions and everything. We give certainty to it, and I think that has worked well to date, but we have to continue to think about things in advance. We just have not hit that point yet. Yeah.

Ian Myles: Okay

Frank Calabria: I don't, I mean—

Ian Myles: So it is sort of the timeline.

Frank Calabria: I would not plug 18 months in the model or anything, you know what I mean? Like it is a that is a said, but essentially if you are looking for the fact that if you are doing anything with a large asset and you are forward planning.

Speaker #1: But yes, that would be—I won't put a precise timing on it, but it's certainly going to be in advance. You think about that in respect of both capital decisions and probably also people decisions, and everything—we give certainty to it.

Frank Calabria: Yes, that would be, I will not put a precise timing on it, but it is certainly going to be in advance. You would think about that in respect of both capital decisions and probably also people decisions and everything. We give certainty to it, and I think that has worked well to date, but we have to continue to think about things in advance. We just have not hit that point yet. Yeah.

Ian Myles: Yeah

Frank Calabria: If you are thinking about 12 months and you wanted to make a decision, you just would not want to put that on critical path if you had to do it. So I think my sort of overarching message would be about 18 months.

Speaker #4: So I think I my sort of overarching message would be about 18 months.

Speaker #1: And I think that's worked well to date, but we have to continue to think about things in advance. We just haven't hit that point yet.

Speaker #7: Okay. And you've made a big promotion of the origins, very much skewed towards the volatility side of the market that you've got lots of flexible assets and the likes.

Ian Myles: Okay.

Frank Calabria: Yeah.

Ian Myles: You have made a big promotion that Origin Energy is very much skewed towards the volatility side of the market, that you have got lots of flexible assets and the likes.

Speaker #1: Yeah.

Speaker #6: Is it fair to think it's a 12-month sort of lead time, or is it even longer than that?

Speaker #1: Oh, it might be. I won't be—it might be a little bit longer than that. It might be a little bit longer. It might be a little bit longer than that.

Ian Myles: Is it fair to think it is a 12-month lead time or is it even longer than that?

Speaker #7: We've probably seen most of the pain in the cap market occurring out there. There's sort of intrigue. What's been the implications to the profitability of your gas plants and probably this is more forward-looking, the profitability of your gas plants and the batteries as we're seeing sort of caps come down, energy arbs come down, FCAS going towards nothing.

Frank Calabria: It might be a little bit longer than that. I do not have a precise time, but I would probably.

Ian Myles: We've probably seen most of the pain in the CAP market occurring out there. I'm just sort of intrigued, what's been the implications to the profitability of your gas plants, and probably this is more forward-looking, the profitability of your gas plants and the batteries as we're seeing sort of CAPs come down, energy arbs come down, FCAS going towards nothing. What's been the impacts for the business?

Speaker #1: I don't have a precise time, but I probably have—I mean, I don't know. If I was guessing, 18 months, you know what I mean?

Speaker #1: But I don't—I mean, I wouldn't, like, 18 months in the model or anything, you know what I mean? But essentially, if you're looking for the fact that if you're doing anything with a large asset and you're forward planning, if you're thinking about 12 months and you wanted to make a decision, you just wouldn't want to put—that is, you wouldn't want to put that on the critical path if you had to do it.

Ian Myles: Yeah

Frank Calabria: I do not know, if I was guessing, 18 months. You know what I mean?

Ian Myles: Okay.

Frank Calabria: I do not-

Ian Myles: So it is sort of this time next year.

Frank Calabria: I would not plug 18 months in the model or anything, you know what I mean? But essentially, if you are looking for the fact that if you are doing anything with a large asset and you are forward planning-

Speaker #7: What's been the impacts for the business?

Ian Myles: Yeah

Frank Calabria: If you are thinking about 12 months and you wanted to make a decision, you would not want to put that on critical path if you had to do it. So I think my overarching message would be about 18 months.

Speaker #4: Yeah. Now, good questions. And there's a number of drivers in the market and particularly the cap market that interplays. With batteries, but more broadly in the way we set our portfolios.

Speaker #1: So, I think my sort of overarching message would be about 18 months.

Frank Calabria: Yeah, no, good questions. There's a number of drivers in the market, and particularly the CAP market, that interplays with batteries, but more broadly in the way we set our portfolio. I might, maybe Tony just make a couple of comments about the CAP market and batteries.

Speaker #6: Okay. And you've made a big point that Origin's very much skewed towards the volatility side of the market. You've got lots of flexible assets and the like.

Speaker #4: So I might maybe Tony just make a couple of comments about the cap market and batteries and then we can open up on that, Ian.

Ian Myles: Okay.

Frank Calabria: Yeah.

Ian Myles: You have made a big promotion that Origin is very much skewed towards the volatility side of the market, that you have lots of flexible assets and the likes.

Ian Myles: You have made a big promotion that Origin is very much skewed towards the volatility side of the market, that you have lots of flexible assets and the likes. We have probably seen most of the pain in the cap market occurring out there. I am just intrigued, what has been the implications to the profitability of your gas plants? Probably this is more forward-looking, the profitability of your gas plants and the batteries, as we are seeing caps come down, energy ARPS come down, FCAS going towards nothing. What has been the impacts for the business?

Ian Myles: Yeah

Frank Calabria: Then we can open up on that, Ian.

Speaker #5: Yeah. I think as Frank said before, the market's come through a pretty benign winter and that combined with the low gas prices over that period as well as batteries coming in has really seen that cap curve trade down.

Speaker #6: We've probably seen most of the pain in the cap market occurring out there. There's sort of intrigue. What have been the implications to the profitability of your gas plants?

Tony Lucas: Yeah, I think as Frank said before, the market's come through a pretty benign winter and that combined with low gas prices over that period as well as batteries coming in has really seen that CAP curve trade down. We sort of look at that CAP curve, and it doesn't really impact, as you know, in financial year 2027 because it's mostly locked in tariffs and et cetera, and some of it locked in into 2028. But, forward-looking, ultimately that sort of CAP price feeds its way into the DMO and customer tariffs, and that's really where you sort of see the impact in the peakers and the batteries. Once you're in the year, it's really about operating those to protect your retail load. The one thing I would say about the CAP market is, there's still a long way to go in the transition.

Ian Myles: We have probably seen most of the pain in the cap market occurring out there. I am just intrigued, what has been the implications to the profitability of your gas plants? Probably this is more forward-looking, the profitability of your gas plants and the batteries, as we are seeing caps come down, energy ARPS come down, FCAS going towards nothing. What has been the impacts for the business?

Speaker #6: And probably this is more forward-looking: the profitability of your gas plants and the batteries. As we're seeing sort of caps come down, energy arbs come down, FCAS going towards nothing.

Speaker #5: We sort of look at that cap curve and it doesn't really impact, as you know, in fin year '27 because it's mostly locked in in tariffs and etc.

Speaker #6: What have been the impacts for the business?

Speaker #1: Yeah, no, good questions. And there are a number of drivers in the market, and particularly the cap market, that interplays with batteries— but more broadly, in the way we set our portfolios.

Speaker #5: and some of it locked in into '28. But forward-looking, ultimately, that sort of cap price feeds its way into the DMO and customer tariffs.

Frank Calabria: Yeah, no, good questions, and there is a number of drivers in the marketing, and particularly the cap market, that interplays with batteries, but more broadly in the way we set our portfolio. Maybe Tony just make a couple of comments about the cap market and batteries.

Speaker #1: So I might, maybe, Tony, just make a couple of comments about the cap market and batteries, and then we can open up on that, Ian.

Speaker #5: And that's really where you sort of see the impact in the peakers and the batteries. Once you're in the year it's really about operating those to protect your retail load.

Speaker #7: Yeah, I think as Frank said before, the market's come through a pretty benign winter, and that, combined with the low gas prices over that period, as well as batteries coming in, has really seen that cap curve trade down.

Tony Lucas: Yeah

Frank Calabria: Then we can open up on that, Ian.

Tony Lucas: Yeah. I think as Frank said before, the market has come through a pretty benign winter, and that combined with low gas prices over that period as well as batteries coming in, has really seen that cap curve trade down. We look at that cap curve, and it doesn't really impact, as you know, Ian, financial year 2027 because it's mostly locked in tariffs and et cetera, and some of it locked in into 2028. But forward-looking, ultimately that cap price feeds its way into the DMO and customer tariffs, and that's really where you see the impact in the peakers and the batteries. Once you're in the year, it's really about operating those to protect your retail load. The one thing I would say about the cap market is there's still a long way to go in the transition. We've still got 20 gigawatts of coal to take out.

Speaker #5: The one thing I would say about the cap market is there's still a long way to go in the transition. We've still got 20 gigawatts of coal to take out.

Tony Lucas: We have still got 20 gigawatts of coal to take out. We have got 30 plus gigawatts of demand coming in. I do not expect winter has disappeared out of Australia in its entirety. There is still a lot to play out. We sort of look at maybe an AUD 8 or AUD 10 CAP price over the long term and say we would be a pretty strong buyer at that price if we could lock in term. I just do not see the market not having volatility in the future given the amount of variability that is going to come into it.

Speaker #5: We've got 30-plus gigawatts of demand coming in. I don't expect winter has disappeared out of Australia in its entirety. And so there's still a lot to play out.

Speaker #7: We sort of look at that cap curve, and it doesn't really impact, as you know, in FY27 because it's mostly locked in in tariffs and etc.

Speaker #7: And some of it locked in at 28. But looking forward, ultimately, that sort of cap price feeds its way into the DMO and customer tariffs.

Speaker #5: And we sort of look at maybe an 8 or $10 cap price over the long term and say would be a pretty strong buyer at that price if we could lock in term.

Tony Lucas: But forward-looking, ultimately that cap price feeds its way into the DMO and customer tariffs, and that's really where you see the impact in the peakers and the batteries. Once you're in the year, it's really about operating those to protect your retail load. The one thing I would say about the cap market is there's still a long way to go in the transition. We've still got 20 gigawatts of coal to take out. We've got 30-plus gigawatts of demand coming in.

Speaker #5: I just don't see the market not having volatility in the future given the amount of variability that's going to come into it.

Speaker #7: And that's really where you sort of see the impact in the peakers and the batteries. Once you're in the year, it's really about operating those to protect your retail load.

Speaker #7: Okay. That's great. Thank you.

Ian Myles: Okay. That is great. Thank you.

Speaker #7: The one thing I would say about the cap market is there's still a long way to go in the transition. We've still got 20 gigawatts of coal to take out.

Speaker #4: Thanks, Ian.

Speaker #2: Thank you. Your next question comes from Amit Kanwatia from Jefferies. Please go ahead.

Frank Calabria: Thanks, Ian.

Operator: Thank you. Your next question comes from Amit Kanwatia from Jefferies. Please go ahead.

Speaker #7: We've got 30-plus gigawatts of demand coming in. I don't expect winter has disappeared out of Australia in its entirety, and so there's still a lot to play out.

Speaker #6: Morning. Morning, team. Just a question. I think I mean, you've said the lower wholesale price, wholesale cost, and that's been feeding into the retail tariffs.

Tony Lucas: We've got 30-plus gigawatts of demand coming in. I don't expect winter has disappeared out of Australia in its entirety. So there's still a lot to play out, and we look at it, maybe an AUD 8 or AUD 10 cap price over the long term and say we'd be a pretty strong buyer at that price if we could lock in term. I just don't see the market not having volatility in the future given the amount of variability that's going to come into it.

Amit Kanwatia: Morning. Morning, team. Just a question. I mean, you've said the lower wholesale price, wholesale cost, and that's been fitting into the retail tariffs and into the customer pricing. Just a question around the retail competition in general, and how are you seeing those retail margins to be behaving?

Tony Lucas: I don't expect winter has disappeared out of Australia in its entirety. So there's still a lot to play out, and we look at it, maybe an AUD 8 or AUD 10 cap price over the long term and say we'd be a pretty strong buyer at that price if we could lock in term. I just don't see the market not having volatility in the future given the amount of variability that's going to come into it.

Speaker #7: And we sort of look at maybe an $8 or $10 cap price over the long term, and say we'd be a pretty strong buyer at that price if we could lock in term.

Speaker #6: And into the customer pricing. But then just a question around the retail competition in general and then how are you seeing those retail behaving?

Speaker #7: I just don't see the market not having volatility in the future, given the amount of variability that's going to come into it.

Speaker #4: Yeah. G'day. It's John here. So we did see more competition in 26 and industry level I was pleased with the fact that our spread to our market churn actually improved.

Speaker #6: Okay. That's great. Thank you.

Jon Briskin: Yeah. Good day, it's Jon here. We did see more competition in 2026 at industry level. I was pleased with the fact that our spread to our market churn actually improved, so we still remain the lowest churn in the market. As we think about margin, we think about a few things. I've got confidence in the way which we acquire customers, and we try to acquire the most valuable segments. That sort of differentiation through products and trying to look at multi-products and how we get the second fuel as well as the broadband grows that margin. Our pricing strategy and then, as I mentioned earlier to Rob, just how we think about pricing different products that may have the different segments. Finally, there's the focus on ongoing efficiencies across the business and how do we reduce those costs to serve over time.

Frank Calabria: Okay. That's great. Thank you. Thanks, Anne.

Ian Myles: Okay. That's great. Thank you.

Speaker #1: Thanks, Ian.

Speaker #2: Thank you. Your next question comes from Amit Kanwajiya from Jefferies. Please go ahead.

Speaker #4: So we still remain the lowest churn in the market. As we think about margin, we think about a few things. I've got confidence in the way which we acquire customers and we try to acquire the most valuable segments.

Frank Calabria: Thanks, Anne.

Operator: Thank you. Your next question comes from Amit Kanwatia from Jefferies. Please go ahead.

Speaker #8: Morning. Morning, team. Just a question. I think—I mean, you've said the lower wholesale price, wholesale cost, and that's being fed into the retail tariffs.

Amit Kanwatia: Morning. Morning, team. Just a question. I mean, you've said the lower wholesale price, wholesale cost, and that's been feeding into the retail tariffs and into the customer pricing. Just a question around the retail competition in general, and then how are you seeing those retail margins to be behaving?

Speaker #8: And into the customer pricing. But then just a question around the retail competition in general, and then how are you seeing those retail margins behaving?

Speaker #4: That's a differentiation through products and trying to look at multi-products and how we get the second fuel as well as the broadband grows that margin.

Speaker #4: Our pricing strategy and then as I mentioned sort of earlier to Rob just how we think about pricing different products that may have a different segments.

Speaker #1: Yeah, good. It's John here. So, we did see more competition in 2026 and at the industry level. I was pleased with the fact that our spread to our market churn actually improved.

Speaker #4: And then finally, there's the focus on ongoing efficiencies across the business and how do we reduce those cost to serve over time. So I think as you think about retail margins going forward, I think we're in a good position to hopefully maintain and grow those margins.

Jon Briskin: Yeah. Good day, it's Jon here. We did see more competition in 2026 at an industry level. I was pleased with the fact that our spread to market churn actually improved, so we still remain the lowest churn in the market. As we think about margin, we think about a few things. I've got confidence in the way which we acquire customers, and we try to acquire the most valuable segments. That's a differentiation through products and trying to look at multi-products and how we get the second fuel as well as the broadband grows that margin. Our pricing strategy and then, as I mentioned earlier to Rob, just how we think about pricing different products that may have the different segments. Then finally, there's the focus on ongoing efficiencies across the business and how do we reduce those costs to serve over time.

Speaker #1: So, we still remain the lowest churn in the market. As we think about margin, we think about a few things. I've got confidence in the way in which we acquire customers, and we try to acquire the most valuable segments.

Jon Briskin: I think as you think about retail margins going forward, I think we're in a good position to hopefully maintain and grow those margins as we go through, yeah.

Speaker #4: As we go through, yeah.

Speaker #6: All right. Thanks. Makes sense. And I mean, just thinking about the retail, but the other part of the business, Octopus retail, and I think I mean, you've highlighting profitability Frank in the UK retail parts and then I think you've grown international retail.

Amit Kanwatia: Right. Thanks. Makes sense. I mean, if just thinking about the retail, but the other part of the business, Octopus Retail, and I think, you've highlighting profitability, Frank, in the UK retail part. I think you've grown international retail. You've got 1 million accounts in a couple of markets. Maybe if you can provide an update on those non-UK international markets and how are you thinking about the profitability into those markets to be able to deliver something that you're kind of seeing in the UK market?

Speaker #1: That's about differentiation through products and looking at multi-products, and how we get the second fuel as well as the broadband, which grows that margin.

Speaker #1: Our pricing strategy, and then, as I mentioned earlier to Rob, just how we think about pricing different products that may have different segments.

Jon Briskin: Our pricing strategy and then, as I mentioned earlier to Rob, just how we think about pricing different products that may have the different segments. Then finally, there's the focus on ongoing efficiencies across the business and how do we reduce those costs to serve over time. I think as you think about retail margins going forward, I think we're in a good position to hopefully maintain and grow those margins as we go through, yeah.

Speaker #6: You've got a million accounts in a couple of markets. Maybe if you can provide an update on those non-UK international markets and how are you thinking about the profitability into those markets to be able to deliver something that you are kind of seeing in the UK market?

Speaker #1: And then finally, there’s the focus on ongoing efficiencies across the business and how we reduce those costs to serve over time. So I think as you think about retail margins going forward, we're in a good position to hopefully maintain and grow those margins.

Jon Briskin: I think as you think about retail margins going forward, I think we're in a good position to hopefully maintain and grow those margins as we go through, yeah.

Speaker #4: Yeah. So they're really four markets they're focused on. Germany, Italy, France, and Spain. They have focused greater growth in both Italy and Germany. And that's why you've seen that they've really seen opportunities in those markets to grow both scale and also improve profitability.

Speaker #1: As we go through, yeah.

Frank Calabria: Yeah. There are really four markets they are focused on, Germany, Italy, France, and Spain. They have focused greater growth in both Italy and Germany. That is why you have seen that they have really seen opportunities in those markets to grow both scale and also improve profitability. A couple of things that are going on, they are really, I think 80% of their switches in the Italian market are now coming through their own channels, not through comparison websites, and they have now moved to doing the same in the German market. So they are probably the two focus ones.

Speaker #8: All right, thanks, makes sense. And, I mean, if I just think about the retail—about the other part of the business, Octopus Retail—and I think, I mean, you've been highlighting profitability, Frank, in the UK retail parts, and then I think you've grown international retail.

Amit Kanwatia: Right. Thanks. Makes sense. I mean, if not just thinking about the retail, but the other part of the business, Octopus Retail, and I think, you've highlighting profitability, Frank, in the UK retail part, and then I think you've grown international retail. You've got 1 million accounts in a couple of markets. Maybe if you can provide an update on those non-UK international markets and how are you thinking about the profitability into those markets to be able to deliver something that you're kind of seeing in the UK market?

Speaker #4: A couple of things that are going on. They've moved they are really, I think, 80% of their switches in the Italian market are now coming through their own channels, not through comparison websites.

Speaker #8: You've got a million accounts in a couple of markets. Maybe you can provide an update on those non-UK international markets, and how you are thinking about the profitability in those markets to be able to deliver something similar to what you are seeing in the UK market?

Speaker #4: And they've now moved to doing the same in the German market. So they're probably the two focus ones. So they are getting to scale in those markets.

Speaker #4: And the indicators that we're seeing there to date show that they're tracking like the UK, but there are still at earlier stages and they haven't really participated in any inorganic consolidation in those markets.

Frank Calabria: They are getting to scale in those markets, and the indicators that we are seeing there to date show that they are tracking like the UK, but they are still at earlier stages, and they have not really participated in any inorganic consolidation in those markets, and they have just preferred to continue to grow them organically. They really have not focused the same amount of effort into the French market, to be clear. They have certainly are operating the Spanish market. I think there are several hundred thousand customers there, and they have got some good growth recently. But we will continue to give signals as to that. It is certainly improving over time. They have to actually achieve that with scale over time, and that is obviously they need to continue to penetrate into a broader customer base that they operate with in each of those respective markets.

Speaker #1: Yeah. So they've really got four markets they're focused on: Germany, Italy, France, and Spain. They've focused on greater growth in both Italy and Germany, and that's why you've seen that they've really identified opportunities in those markets to grow both scale and also improve profitability.

Frank Calabria: Yeah. There are really four markets they are focused on: Germany, Italy, France, and Spain. They have focused greater growth in both Italy and Germany, and that is why you have seen that they have really seen opportunities in those markets to grow both scale and also improve profitability. A couple of things that are going on. They are really, I think 80% of their switches in the Italian market are now coming through their own channels, not through comparison websites, and they have now moved to doing the same in the German market. They are probably the two focus ones.

Speaker #4: And they've just preferred to continue to grow them organically. They really haven't focused the same amount of effort into the French market to be clear.

Speaker #4: And they've certainly are operating the Spanish market. I think there's several hundred thousand customers there and they've got some good growth recently. But we will continue to give signals as to that.

Speaker #1: A couple of things that are going on: they've moved—really, I think 80% of their switches in the Italian market are now coming through their own channels, not through comparison websites.

Speaker #4: It's certainly improving over time. They have to actually achieve that with scale over time. And that's obviously they need to continue to penetrate into a broader customer base that they operate with in each of those respective markets.

Speaker #1: And they've now moved to doing the same in the German market, so they're probably the two focus ones. So they are getting to scale in those markets.

Speaker #1: And the indicators that we're seeing there to date show that they're tracking like the UK, but they are still at earlier stages, and they haven't really participated in any inorganic consolidation in those markets.

Speaker #4: Probably the signals that you would look at probably be Italy and Germany given the scale of where they're at right now. They're the ones that are clearly scaling.

Frank Calabria: They are getting to scale in those markets, and the indicators that we are seeing there to date show that they are tracking like the UK, but they are still at earlier stages, and they have not really participated in any inorganic consolidation in those markets, and they have just preferred to continue to grow them organically. They really have not focused the same amount of effort into the French market, to be clear. They certainly are operating the Spanish market. I think there are several hundred thousand customers there, and they have got some good growth recently. But we will continue to give signals as to that. It is certainly improving over time. They have to actually achieve that with scale over time, and that is obviously they need to continue to penetrate into a broader customer base that they operate with in each of those respective markets.

Frank Calabria: Probably the signals that you would look at, probably be Italy and Germany, given the scale of where they are at right now. They are the ones that are clearly scaling. But we will continue to provide indicators as to how they progress over time, because it is an ongoing opportunity that they move through.

Speaker #4: But we'll continue to provide indicators as to how they progress over time because it's an ongoing opportunity that they move through.

Speaker #1: And they've just preferred to continue to grow them organically. They really haven't focused the same amount of effort into the French market, to be clear.

Speaker #1: And they certainly are operating in the Spanish market. I think there's several hundred thousand customers there, and they've had some good growth recently. But we will continue to give signals as to that.

Speaker #6: And then if I think about Kraken Business and I mean, you've highlighting 40% kind of rule of thumb to be broadly intact, but I think the margins over the last few years seems to be going down in 26 with the margin is around 24%.

Amit Kanwatia: Yep. If I think about Kraken business, and you are highlighting 40% kind of rule of thumb to be broadly intact, but I think the margins over the last few years seems to be going down.

Frank Calabria: I think there are several hundred thousand customers there, and they have got some good growth recently. But we will continue to give signals as to that. It is certainly improving over time. They have to actually achieve that with scale over time, and that is obviously they need to continue to penetrate into a broader customer base that they operate with in each of those respective markets. Probably the signals that you would look at, probably be Italy and Germany, given the scale of where they are at right now. They are the ones that are clearly scaling. But we will continue to provide-

Speaker #1: It's certainly improving over time. They have to actually achieve that with scale over time, and obviously they need to continue to penetrate into a broader customer base that they operate within in each of those respective markets.

Frank Calabria: Yeah.

Amit Kanwatia: In 2026, EBITDA margin is around 24%.

Speaker #6: It just could have been some margin. I mean, how are you thinking in terms of the medium term to be getting to those kind of historical margins that 35, 40%?

Frank Calabria: Yeah.

Amit Kanwatia: Adjusted EBITDA margin. I mean, how are you thinking in terms of the medium term to be getting to those kind of historical margins, that 35% to 40%?

Speaker #1: Probably, the signals that you would look at would probably be Italy and Germany, given the scale of where they're at right now. They're the ones that are clearly scaling.

Speaker #4: Well, yeah. They've just gone through I mean, as they've set up and they've now really starting to scale into new markets and they're moving into new markets and executing a lot of migrations simultaneously.

Frank Calabria: Well, yeah, they've just gone through. I mean, as they've set up and they've now really starting to scale into new markets, and they're moving into new markets and executing a lot of migrations simultaneously. They've just got quite a bit of build that's gone on, and we're trying to give an indication to that that build, and timing and lumpiness of it, is really setting what's happened over the last couple of years. But in terms of the underlying pricing margin, subscription margin, we're feeling pretty confident about that. But that proves a bit challenging that last year or so, the reason being is that they just really have front-end weighted as they've gone into new markets simultaneously and executed that. Nothing's really changing from our view overall.

Speaker #1: But we'll continue to provide indicators as to how they progress over time, because it's an ongoing opportunity that they move through.

Speaker #4: They've just got quite a bit of build that's going on. And that's we're trying to give an indication to that, that that build and timing and lumpiness of it is really set is really setting what's happened over the last couple of years.

Amit Kanwatia: Sure

Frank Calabria: indicators as to how they progress over time because it is an ongoing opportunity that they move through.

Speaker #8: And then if I think about the Kraken business, and I mean, you've highlighted the 40% kind of rule of thumb to be broadly intact, but I think the margins over the last few years seem to be going down. In FY26, with the margin, it's around 24%.

Amit Kanwatia: Yep. If I think about Kraken business, you are highlighting 40% kind of rule of thumb to be broadly intact, but I mean the margins over the last few years seem to be going down.

Speaker #4: But in terms of the underlying pricing margin, subscription margin, we're feeling pretty confident about that. But it's that proves a bit challenging that last year or so, the reason being is that they just really have front-end weighted as they've gone into new markets simultaneously and executed that.

Speaker #8: It just did a bit on margin. I mean, how are you thinking in terms of the medium term, to be getting to those kind of historical margins – that 35, 40%?

Frank Calabria: Yeah.

Amit Kanwatia: In 2026, EBITDA margin is around 24%.

Frank Calabria: Yeah.

Amit Kanwatia: Adjusted EBITDA margin. I mean, how are you thinking in terms of the medium term to be getting to those kind of historical margins, that 35%, 40%?

Speaker #4: So nothing's really changing from our view overall. But we know that we'll have to continue to help you understand that and that's what we're endeavoring to do so you can sort of look through what's the right way to think about this business longer term.

Speaker #1: Well, yeah, they've just gone through, I mean, as they've set up, and they're now really starting to scale into new markets. And they're moving into new markets and executing a lot of migrations simultaneously.

Frank Calabria: But we know that we'll have to continue to help you understand that, and that's what we're endeavoring to do, just so you can sort of look through what's the right way to think about this business longer term.

Frank Calabria: Well, they have just gone through. I mean, as they have set up and they are now really starting to scale into new markets, and they are moving into new markets and executing a lot of migrations simultaneously. They have just got quite a bit of build that has gone on, and that is, we are trying to give an indication to that that build, and timing and lumpiness of it, is really setting what has happened over the last couple of years. But in terms of the underlying pricing margin, subscription margin, we are feeling pretty confident about that. But that proves a bit challenging that last year or so, the reason being is that they just really have front-end weighted as they have gone into new markets simultaneously and executed that. So nothing is really changing from our view overall.

Speaker #1: They've just got quite a bit of build that's gone on. And that's what we're trying to give an indication to: that build and the timing and lumpiness of it is really setting what's happened over the last couple of years.

Speaker #6: Okay. Thank you.

Amit Kanwatia: Okay. Thank you.

Speaker #2: Thank you. Your next question comes from Nick Burns from Jardine Australia. Please go ahead.

Operator: Thank you. Your next question comes from Nik Burns from Jarden Australia. Please go ahead.

Speaker #7: Hello everyone and thanks for taking my questions. First one just on growth capex. Stepping down again in FY27, you called out the economics on Yankee Delta look challenging at the moment.

Speaker #1: But in terms of the underlying pricing margin, subscription margin, we're feeling pretty confident about that. But that's proved a bit challenging over the last year or so, the reason being that they just really have front-end weighted as they've gone into new markets simultaneously and executed that.

Nik Burns: Yes. Hi, everyone, and thanks for taking my questions. First one just on growth CapEx. Stepping down again in FY27, you called out the economics on Yanco Delta look challenging at the moment. Just wondering what's next for Origin in terms of incremental growth CapEx. Where do you expect to deploy capital in growing the business from FY28? Or do you need to invest at all? Are you comfortable with holding off on new investment until we see an improvement in broader energy markets conditions? Thanks.

Speaker #7: Just wondering what's next for origin in terms of incremental growth capex. Where do you expect to deploy capital and growing the business from FY28?

Frank Calabria: But that proves a bit challenging that last year or so, the reason being is that they just really have front-end weighted as they have gone into new markets simultaneously and executed that. So nothing is really changing from our view overall. But we know that we will have to continue to help you understand that, and that's what we are endeavoring to do, just so you can sort of look through what's the right way to think about this business longer term.

Speaker #1: So, nothing's really changing from our view overall. But we know that we'll have to continue to help you understand that, and that's what we're endeavoring to do so you can sort of look through what's the right way to think about this business longer term.

Speaker #7: Or do you need to invest at all? Are you comfortable with holding off on your investment until we see an improvement and broader energy markets?

Frank Calabria: But we know that we will have to continue to help you understand that, and that's what we are endeavoring to do, just so you can sort of look through what's the right way to think about this business longer term.

Speaker #7: Thanks.

Speaker #4: Yeah. Thanks, Nick. I mean, we are always making assessments about a market and you would not think of any particular year. You're actually looking through to seeing where the opportunity lies and where the market presents and that's what we continue to do.

Frank Calabria: Yeah. Thanks, Nik. I mean, we are always making assessments about a market, and you would not think of any particular year. You are actually looking through to seeing where the opportunity lies and where the market presents, and that is what we continue to do. Even if you look in the last month or so, we have got announcements about additionality for data centers as it is becoming a growth driver of electricity demand. Even today, there is an announcement around ongoing growth, sorry, in renewable demand, likely to be as a result of the announcement regarding Tomago. So we are going to still continue to see underlying drivers. What sits behind that is we just have to make sure that we continue to remain disciplined around it.

Speaker #8: Okay. Thank you.

Speaker #2: Thank you. Your next question comes from Nick Burns from Jarden, Australia. Please go ahead.

Amit Kanwatia: Okay. Thank you.

Operator: Thank you. Your next question comes from Nik Burns from Jarden Australia. Please go ahead.

Speaker #3: Are you fine, everyone? And thanks for taking my questions. First one, just on growth capex—stepping down again in FY27. You called out the economics on Yankee Delta look challenging at the moment.

Speaker #4: Even if you look in the last month or so, we've got announcements about additionality for data centers as it's becoming a growth driver of electricity demand and even today there's an announcement around ongoing growth sorry, in renewable demand likely to be as a result of the announcement regarding TOMEGO.

Nik Burns: Hi, everyone, and thanks for taking my questions. First one just on growth CapEx. Stepping down again in FY27, you called out the economics on Yanco Delta look challenging at the moment. Just wondering what's next for Origin in terms of incremental growth CapEx. Where do you expect to deploy capital in growing the business from FY28? Or do you need to invest at all? Are you comfortable with holding off on new investment until we see an improvement in broader energy markets conditions? Thanks.

Speaker #3: Just wondering, what's next for Origin in terms of incremental growth capex? Where do you expect to deploy capital and grow the business from FY28?

Speaker #3: Or do you need to invest at all? Are you comfortable with holding off on your investment until we see an improvement in broader energy market conditions?

Speaker #4: So we're going to still continue to see underlying drivers. What sits behind that is we just have to make sure that we continue to remain disciplined around it and we're continuing to focus on bringing Yankee Delta, but we're being very clear about where we can get that cost and how we return those assets, how we get a return on those developments.

Speaker #3: Thanks.

Speaker #1: Yeah, thanks, Nick. I mean, we are always making assessments about a market, and you would not think of any particular year. You’re actually looking through to see where the opportunity lies and where the market presents, and that’s what we continue to do.

Frank Calabria: We are continuing to focus on bringing Yanco Delta, but we are being very clear about where we can get that cost and how we return those assets, how we get a return on those developments. We continue to look at opportunities across the chain. You will see we have done some smaller bolt-on activity that Jon and the team have continued to do, and we continue to look at other wholesale market opportunities. But we feel like we have got a good portfolio, but we have to continue to participate in what we see as the long-term trend. We will continue to be active about it, and that figures in our thinking. I would not think anything specifically, but you do want to have balance sheet capacity that can both distribute to shareholders and invest.

Frank Calabria: Yeah, thanks, Nik. We are always making assessments about a market, and you would not think of any particular year. You are actually looking through to seeing where the opportunity lies and where the market presents, and that is what we continue to do. Even if you look in the last month or so, we have got announcements about additionality for data centers as it is becoming a growth driver of electricity demand. Even today, there is an announcement around ongoing growth, sorry, in renewable demand, likely to be as a result of the announcement regarding Tomago. So we are going to still continue to see underlying drivers. What sits behind that is we just have to make sure that we continue to remain disciplined around it.

Speaker #4: So we continue to look at opportunities across the chain. You'll see we've done some smaller bolt-on activity that John and the team have continued to do and we continue to look at other wholesale market opportunities.

Speaker #1: Even if you look in the last month or so, we've got announcements about additionality for data centers, as it's becoming a growth driver of electricity demand, and even today there's an announcement around ongoing growth—sorry, in renewable demand—likely to be as a result of the announcement regarding TOMEGO.

Speaker #4: But we're not we feel like we've got a good portfolio but we have to continue to participate in what we see as the long-term trend.

Speaker #4: So we'll continue to be active about it. And that's figures in our thinking and I wouldn't think anything specifically, but you do want to have balance sheet capacity that can both distribute to shareholders and invest.

Frank Calabria: Even today, there is an announcement around ongoing growth, sorry, in renewable demand, likely to be as a result of the announcement regarding Tomago. So we are going to still continue to see underlying drivers. What sits behind that is we just have to make sure that we continue to remain disciplined around it. We are continuing to focus on bringing Yanco Delta, but we are being very clear about where we can get that cost and how we return those assets, how we get a return on those developments.

Speaker #1: So we're going to still continue to see underlying drivers. What sits behind that is, we just have to make sure that we continue to remain disciplined around it, and we're continuing to focus on bringing Yankee Delta, but we're being very clear about where we can get that cost and how we return those assets—how we get a return on those developments.

Speaker #4: And we're going through a period where we feel like we've committed the right amount of batteries right now and then we're continuing to focus on the other wave of opportunities.

Frank Calabria: We are going through a period where we feel like we have committed the right amount of batteries right now, and then we are continuing to focus on the other wave of opportunities. You can see we made an investment in July into Kraken as well. So, we have got a range of opportunities across the value chain that we continue to explore.

Speaker #4: You can see we made an investment in July into Kraken as well. So we've got a range of opportunities across the value chain that we continue to explore.

Frank Calabria: We are continuing to focus on bringing Yanco Delta, but we are being very clear about where we can get that cost and how we return those assets, how we get a return on those developments. So we continue to look at opportunities across the chain. You will see we have done some smaller bolt-on activity that Jon and the team have continued to do, and we continue to look at other wholesale market opportunities. But we feel like we have got a good portfolio, but we have to continue to participate in what we see as the long-term trend. So we will continue to be active about it, and that figures in our thinking, and I would not think anything specifically, but you do want to have balance sheet capacity that can both distribute to shareholders and invest.

Speaker #1: So, we continue to look at opportunities across the chain. You'll see we've done some smaller bolt-on activity that John and the team have continued to pursue, and we continue to look at other wholesale market opportunities.

Frank Calabria: So we continue to look at opportunities across the chain. You will see we have done some smaller bolt-on activity that Jon and the team have continued to do, and we continue to look at other wholesale market opportunities. But we feel like we have got a good portfolio, but we have to continue to participate in what we see as the long-term trend. So we will continue to be active about it, and that figures in our thinking, and I would not think anything specifically, but you do want to have balance sheet capacity that can both distribute to shareholders and invest.

Speaker #7: Got it. Thanks for that. And maybe just on APL and G, your production guide for FY27, I guess at the midpoint points to lower output versus 26.

Nik Burns: Got it. Thanks for that. Maybe just on APLNG. Your production guidance for FY27, I guess at the midpoint points to lower output versus 2026, and you have outlined plans to increase investment there, but it will take time to see the benefits of that flowing through to production. Just wondering about, if we look ahead through to FY28, do you think the investment that you are stepping up in 2027 will be sufficient to maybe maintain output at similar levels in 2028. Then just, I guess more of a higher question back to, I guess, the question Ian asked around the domestic gas reservation scheme and implications for APLNG. What is the desire to continue to invest here when really the incremental molecules are getting out of the ground and primarily going into the domestic market, given you have got enough gas for LNG?

Speaker #1: But we're not. We feel like we've got a good portfolio, but we have to continue to participate in what we see as the long-term trend.

Speaker #7: And you've outlined plans to increase investment there, but we'll take time to see the benefits of that flowing through to production. Just wondering about if we look ahead of through to FY28, do you think the investment you're stepping up in 27 will be sufficient to maybe maintain output at a similar levels in 28?

Speaker #1: So, we'll continue to be active about it, and that figures in our thinking. I wouldn't point to anything specifically, but you do want to have balance sheet capacity that can both distribute to shareholders and invest.

Speaker #1: And we're going through a period where we feel like we've committed the right amount of batteries right now, and then we're continuing to focus on the other wave of opportunities.

Speaker #7: And then just, I guess, more of a higher question back to I guess the question Ian asked around the domestic gas reservation scheme and implications for APL and G.

Speaker #1: You can see we made an investment in July into Kraken as well. So, we've got a range of opportunities across the value chain that we continue to explore.

Speaker #7: What's the desire to continue to invest here when really the incremental molecules are getting out of the ground of primarily going into the domestic market given you've got enough gas for LNG?

Speaker #3: Got it, thanks for that. And maybe just on APLNG, your production guidance for FY27, I guess at the midpoint, points to lower output versus FY26.

Speaker #7: How is the APL and G weighing up that need or desire to invest more right now given the uncertainty around what's been proposed? Thanks.

Nik Burns: Got it. Thanks for that. Maybe just on APLNG, your production guidance for FY27, I guess at the midpoint points to lower output versus 2026. You have outlined plans to increase investment there, but it will take time to see the benefits of that flowing through to production. Just wondering about, if we look ahead of, through to FY28, do you think the investment you are stepping up in 2027 will be sufficient to maybe maintain output at similar levels in 2028? Then just, I guess more of a higher question back to, I guess, the question Ian asked around the domestic gas reservation scheme and implications for APLNG. What is the desire to continue to invest here when really the incremental molecules you are getting out of the ground are primarily going into the domestic market, given you have got enough gas for LNG?

Nik Burns: How is APLNG weighing up that need or desire to invest more right now given the uncertainty around what has been proposed? Thanks.

Speaker #3: And you've outlined plans to increase investment there, but it will take time to see the benefits of that flowing through to production. Just wondering, if we look ahead through to FY28, do you think the investment that you're stepping up in 2027 will be sufficient to maybe maintain output at similar levels in 2028?

Speaker #4: Yeah. Sure. I'll get a leader to answer the first question and then I'll come back and give you some comments regarding joint venture and gas market review and other aspects.

Frank Calabria: Yeah, sure. I will get Aleta to answer the first question, then I will come back and give you some comments regarding joint venture and gas market review and other aspects.

Speaker #2: Yeah. Thanks very much. So we will continue to see decline across our fields. That's our natural field decline. And it has meant that we have needed to increase the investments that we're making.

Aleta Nicoll: Yeah. Thanks very much. We will continue to see decline across our fields. That is our natural field decline, and it has meant that we have needed to increase the investments that we are making. What you have seen for FY27, lower production and also an increase in the investment that we are making in drilling. We would expect going forward that we will need to continue to invest in our optimization activities about the same level that we have been investing to date. We would expect that the drilling investments would hold at about the levels that we have got for 2027. What I would say, though, is there are midterm opportunities. We do have the opportunity to unlock some of the lower-cost gas in Reedy Creek. That would be through an expansion of the Reedy Creek facilities that currently we have got additional gas.

Speaker #3: And then just, I guess, more of a higher-level question back to, I guess, the question Ian asked around the domestic gas reservation scheme and implications for APLNG.

Speaker #2: So what you have seen for FY27, lower production, and also an increase in the investment that we're making in drilling. We'd expect going forward that we'll need to continue to invest in our optimization activities about the same level that we have been investing today.

Nik Burns: Then just, I guess more of a higher question back to, I guess, the question Ian asked around the domestic gas reservation scheme and implications for APLNG. What is the desire to continue to invest here when really the incremental molecules you are getting out of the ground are primarily going into the domestic market, given you have got enough gas for LNG? How is APLNG weighing up that need or desire to invest more right now given the uncertainty around what has been proposed? Thanks.

Speaker #3: What's the desire to continue to invest here when, really, the incremental molecules you're getting out of the ground are primarily going into the domestic market, given you've got enough gas for LNG?

Speaker #3: How is the APLNG weighing up that need or desire to invest more right now, given the uncertainty around what's been proposed? Thanks.

Speaker #2: We'd expect that the drilling investments would hold at about the levels that we've got for 27. What I would say though is there are midterm opportunities.

Nik Burns: How is APLNG weighing up that need or desire to invest more right now given the uncertainty around what has been proposed? Thanks.

Speaker #1: Yeah, sure. I'll get a leader to answer the first question, and then I'll come back and give you some comments regarding joint venture and gas market review and other aspects.

Speaker #2: So we do have the opportunity to unlock some of the lower cost gas in Reedy Creek. That would be through an expansion of the Reedy Creek facilities that currently we've got additional gas.

Frank Calabria: Yeah, sure. I will get Alida to answer the first question, and then I will come back and give you some comments regarding joint venture and gas market review and other aspects.

Speaker #2: Yeah, thanks very much. So, we will continue to see decline across our fields—that's our natural field decline. And it has meant that we have needed to increase the investments that we're making.

[Company Representative] (Origin): Yeah. Thanks very much. We will continue to see decline across our fields. That is our natural field decline, and it has meant that we have needed to increase the investments that we are making. What you have seen for FY27, lower production and also an increase in the investment that we are making in drilling. We would expect going forward that we will need to continue to invest in our optimization activities about the same level that we have been investing to date. We would expect that the drilling investments would hold at about the levels that we have got for 27. What I would say, though, is there are midterm opportunities. We do have the opportunity to unlock some of the lower-cost gas in Reedy Creek. That would be through an expansion of the Reedy Creek facilities. That currently we have got additional gas. We do not have additional facilities in that field.

Speaker #2: We don't have additional facilities in that field. But that would be subject to what's happening in the market outlook and the regulatory outlook and will be a call that APL and G joint venture will need to make.

Aleta Nicoll: We do not have additional facilities in that field, but that would be subject to what is happening in the market outlook and the regulatory outlook, and will be a call that APLNG joint venture will need to make.

Speaker #2: So what you have seen for FY27: lower production and also an increase in the investment that we're making in drilling. We'd expect, going forward, that we'll need to continue to invest in our optimization activities at about the same level that we have been investing today.

Speaker #4: And probably just later just add this. So the decline rate does flatten through the work that's planned and then so it doesn't yeah. So to give a sense for that because I think that's what Nick said.

Frank Calabria: And probably, just Aleta, just add there, the decline rate does flatten through the work that is planned, then it does not.

Speaker #2: We'd expect that the drilling investments would hold at about the levels that we've got for '27. What I would say, though, is there are mid-term opportunities.

Aleta Nicoll: Yeah, that is.

Frank Calabria: To give a sense for that, because I think that is what Nik means.

Speaker #2: Yeah. That's correct. So in the last probably 18 months, you've been looking at a decline rate of about 1.5 PJs per quarter. We're expecting that over this financial year, that will flatten a bit to about 1 to 1 and a half PJs per quarter.

Aleta Nicoll: Yeah, that is correct. In the last probably 18 months, you have been looking at a decline rate of about 1.5 petajoules per quarter. We are expecting that over this financial year, that will flatten a bit to about 1 to 1.5 petajoules per quarter. Then we would expect in FY28, we would be more at around 1 petajoule per quarter in terms of the decline rate.

Aleta Nicoll: We would expect that the drilling investments would hold at about the levels that we have got for 27. What I would say, though, is there are midterm opportunities. We do have the opportunity to unlock some of the lower-cost gas in Reedy Creek. That would be through an expansion of the Reedy Creek facilities. That currently we have got additional gas. We do not have additional facilities in that field. That would be subject to what is happening in the market outlook and the regulatory outlook and will be a call that APLNG joint venture will need to make.

Speaker #2: So we do have the opportunity to unlock some of the lower-cost gas in Reedy Creek. That would be through an expansion of the Reedy Creek facilities. Currently, we've got additional gas.

Speaker #2: And then we'd expect in FY28, we'd be more at around 1 PJ per quarter in terms of the decline rate.

Speaker #2: We don't have additional facilities in that field, but that would be subject to what's happening in the market outlook and the regulatory outlook. And that'll be a call that the APLNG joint venture will need to make.

Speaker #4: And then what a leader highlighted, Nick, was that one of the investments before us right now is the facilities that would be to support and the drilling to support Reedy Creek.

Frank Calabria: Then, what Aleta highlighted, Nik, was that one of the investments before us right now is the facilities that would be to support and the drilling to support Reedy Creek. There are a lot of reserves. The joint venture is just pretty rational about that. Whilst you have got gas market reviews out there, they really would like to understand the market they are investing in, but just to continue to be a rational investor. So the appetite will be there, provided they just understand the market settings. That is really the main thing, and it is right in the midst of that right now. So that will play into it. So will the broader market. ConocoPhillips continued and Sinopec continue to be very constructive joint venture partners. We have spent money into this joint venture over time, but right now I think there is a lot swinging on the gas market reviews.

[Company Representative] (Origin): That would be subject to what is happening in the market outlook and the regulatory outlook and will be a call that APLNG joint venture will need to make.

Speaker #1: And probably just later, just add this. So the decline rate does flatten through the work that's planned, and then—so it doesn't—so to give a sense for that, because I think that's what Nick was—

Speaker #4: There's a lot of reserves. The joint ventures just pretty rational about that. Whilst you've got gas market reviews out there, they really would like to understand the market they're investing in.

Frank Calabria: And probably just, Alida, just add this. The decline rate does flatten through the work that's planned, and then it doesn't-

Speaker #2: Yeah, that's correct. So in the last, probably, 18 months, you've been looking at a decline rate of about 1.5 PJ per quarter. We're expecting that, over this financial year, that will flatten a bit to about 1 to 1.5 PJ per quarter.

[Company Representative] (Origin): Yeah, that's-

Aleta Nicoll: Yeah, that's-

Frank Calabria: To give a sense for that, because I think that's what Nik was-

Speaker #4: But just to continue to be a rational investor. So the appetite will be there provided they just understand the market settings. That's really the main thing.

[Company Representative] (Origin): Yeah, that's correct. So, in the last probably 18 months, you've been looking at a decline rate of about 1.5 PJs per quarter. We're expecting that over this financial year, that will flatten a bit to about 1 to 1.5 PJs per quarter. And then we'd expect in FY28, we'd be more at around 1 PJ per quarter in terms of the decline rate.

Aleta Nicoll: Yeah, that's correct. So, in the last probably 18 months, you've been looking at a decline rate of about 1.5 PJs per quarter. We're expecting that over this financial year, that will flatten a bit to about 1 to 1.5 PJs per quarter. And then we'd expect in FY28, we'd be more at around 1 PJ per quarter in terms of the decline rate.

Speaker #4: And it's right in the midst of that right now. So that will play into it. And so we'll abroad a market. So Conico's continued and Sonifer continue to be very constructive joint venture partners.

Speaker #2: And then we'd expect in FY28, we'd be more at around 1 PJ per quarter in terms of the decline rate.

Speaker #4: Been very we spent money into this joint venture over time. But right now, I think there's a lot swinging on the gas market reviews.

Speaker #1: And then what a leader highlighted, Nick, was that one of the investments before us right now is the facilities that would be to support, and the drilling to support, Reedy Creek.

Frank Calabria: What Alida highlighted, Nik, was that one of the investments before us right now is the facilities that would be to support and the drilling to support Reedy Creek. There is a lot of reserves. The joint venture is just pretty rational about that. Whilst you have gas market reviews out there, they really would like to understand the market they are investing in, but just to continue to be a rational investor. The appetite will be there, provided they just understand the market settings. That is really the main thing, and it is right in the midst of that right now. That will play into it, and so will the broader market. ConocoPhillips has continued and so on, they continue to be very constructive joint venture partners.

Speaker #4: So just need to understand that. And get the confidence from that.

Frank Calabria: Just need to understand that, and get the confidence from that.

Speaker #1: There’s a lot of reserves. The joint ventures are just pretty rational about that. Whilst you’ve got gas market reviews out there, they really would like to understand the market they’re investing in.

Speaker #7: That's right. Thanks for those. Answers. Just one final one for me. Just on the cost of serve savings. You've achieved your target. It's just wondering if there's any plans for further cost savings to help offset inflationary impacts in FY27.

Nik Burns: That is great. Thanks for those answers. Just one final one from me. Just on the cost to serve savings, you have achieved your target. Just wondering if there is any plans for further cost savings to help offset inflationary impacts in FY2027.

Speaker #1: But just to continue to be a rational investor. So the appetite will be there, provided they just understand the market settings. That's really the main thing.

Speaker #6: Yeah. I mean, we absolutely continue to focus on where we can reduce the sort of activity for customers. And improve self-service. One of the key aspects of that is investment in AI.

Jon Briskin: Well, we absolutely continue to focus on where we can reduce the sort of activity for customers, and improve self-service. One of the key aspects of that is investment in AI. As we think about 2027, though, we have the full year impact of 1st Energy and Energy Locals, so we will absorb that and we will migrate those customers onto Kraken and get the efficiencies from that. That will be an additional cost that comes with the 135,000 customers. We are also going to reallocate some of the costs associated with the VPP and from the Future Energy segment into the retail business, and the costs associated with the data incident. So we are working hard to offset those. I think what we have guided there is that cost to serve per customer should be flat into 2027.

Speaker #1: And it's right in the midst of that right now. So that broadened the market. So Conoco's continued and Sinopec continue to be very constructive joint venture partners.

Frank Calabria: That is really the main thing, and it is right in the midst of that right now. That will play into it, and so will the broader market. ConocoPhillips has continued and so on, they continue to be very constructive joint venture partners. We have spent money into this joint venture over time, but right now I think there is a lot swinging on the gas market reviews. Just need to understand that, and get the confidence from that.

Speaker #6: As we think about 27 though, we have the full year impact of first energy and energy locals. So we'll absorb that and we'll migrate those customers onto Kraken and get the efficiencies from that.

Speaker #1: We've spent money on this joint venture over time, but right now, I think there's a lot riding on the gas market reviews.

Frank Calabria: We have spent money into this joint venture over time, but right now I think there is a lot swinging on the gas market reviews. Just need to understand that, and get the confidence from that.

Speaker #1: So we just need to understand that, and gain confidence from it.

Speaker #6: That will be an additional cost that comes with the 135,000 customers. We're also going to reallocate some of the costs associated with the VPP and from the future energy segment into the retail business.

Speaker #3: That's great, thanks for those. So, just one final one from me. Just on the cost-to-serve savings—you've achieved your target. I was just wondering if there are any plans for further cost savings to help offset inflationary impacts in FY27?

Nik Burns: That is great. Thanks for those answers. Just one final one for me. Just on the cost to serve savings, you have achieved your target. Just wondering if there is any plans for further cost savings to help offset inflationary impacts in FY27.

Speaker #6: And the costs associated with the data incident. So we're working hard to offset those I think what we've guided there is that cost to serve per customer should be flat into 27.

Speaker #1: Yeah, I mean, we absolutely continue to focus on where we can reduce the sort of activity for customers and improve self-service. One of the key aspects of that is investment in AI.

Speaker #6: But underneath that, there's a lot of activity going in terms of AI efficiencies.

Jon Briskin: Well, we absolutely continue to focus on where we can reduce the sort of activity for customers and improve self-service. One of the key aspects of that is investment in AI. As we think about 2027, though, we have the full year impact of 1st Energy and Energy Locals, so we will absorb that, and we will migrate those customers onto Kraken and get the efficiencies from that. That will be an additional cost that comes with the 135,000 customers. We are also going to reallocate some of the costs associated with the VPP and from the future energy segment into the retail business, and the costs associated with the data incident. So we are working hard to offset those. I think what we have guided there is that cost to serve per customer should be flat into 2027. But underneath that, there is a lot of activity going in terms of AI and other efficiencies.

Jon Briskin: But underneath that, there is a lot of activity going in terms of AI and other efficiencies.

Speaker #7: Just a one thing to that is the retail acquisitions will migrate as John said over time. Our cost to serve is probably broadly, I'd say probably half what their cost to serve is.

Speaker #1: As we think about '27, though, we have the full-year impact of First Energy and Energy Locals. So, we'll absorb that and we'll migrate those customers onto Kraken and get the efficiencies from that.

Tony Lucas: I just have one thing to that, is the retail acquisitions will migrate, as Jon said, over time. Our cost to serve is probably broadly, I'd say, probably half what their cost to serve is. So it just takes us time to migrate that and get that benefit. But we definitely see value in acquiring more customers and migrating them onto our platform.

Speaker #1: That will be an additional cost that comes with the 135,000 customers. We're also going to reallocate some of the costs associated with the VPP and from the Future Energy segment into the Retail business.

Speaker #7: So it just takes us time to migrate that and get that benefit. But we definitely see value in acquiring more customers and migrating them onto our platform.

Jon Briskin: We are also going to reallocate some of the costs associated with the VPP and from the future energy segment into the retail business, and the costs associated with the data incident. So we are working hard to offset those. I think what we have guided there is that cost to serve per customer should be flat into 2027. But underneath that, there is a lot of activity going in terms of AI and other efficiencies.

Speaker #4: That's yeah. I know obviously just we're pleased that we're through that transformation. The teams are continuing to focus on that continuous improvement every day.

Speaker #1: And the costs associated with the data incident. So we're working hard to offset those. I think what we've guided there is that cost to serve per customer should be flat into 2027.

Nik Burns: That's really helpful.

Frank Calabria: And obviously, yeah. And obviously, just we're pleased that we're through that transformation. The teams are continuing to focus on that continuous improvement every day and that will continue to provide opportunities for us going forward.

Speaker #4: And that will continue to provide opportunities for us going forward.

Speaker #1: But underneath that, there's a lot of activity going on in terms of AI and other efficiencies.

Speaker #7: Right. Thanks, Frank. Continue. Cheers.

Speaker #3: Just to add one thing to that: the retail acquisitions will migrate, as John said, over time. Our cost to serve is probably, broadly, I'd say, probably half what their cost to serve is.

Speaker #4: Thanks, Nick.

Nik Burns: Right. Thanks, Frank and team. Cheers.

Speaker #2: Thank you. Your next question comes from Gordon Ramsey from Morgan's Financial. Please go ahead.

Frank Calabria: Thanks, Nik.

Operator: Thank you. Your next question comes from Gordon Ramsay from Morgans Financial. Please go ahead.

Tony Lucas: I just have one thing to that, the retail acquisitions will migrate, as Jon said, over time. Our cost to serve is probably broadly, I would say, probably half what their cost to serve is. So it just takes us time to migrate that and get that benefit. But we definitely see value in acquiring more customers and migrating them onto our platform.

Speaker #5: Sorry. That's RBC Capital Markets. Frank and Tony, thanks very much for the presentation today. Just on Kraken and I'm not asking you for an exact date, but I just want to get my head around what's required to be in a position to IPO it or spin it off.

Gordon Ramsay: Sorry, that's RBC Capital Markets. Frank and Tony, thanks very much for the presentation today. Just on Kraken, I am not asking you for an exact date, but I just want to get my head around what's required to be in a position to IPO it or spin it off. I mean, obviously, the legal separation's complete. I guess where I am coming from, is this purely market-driven right now, or are there additional factors at play in terms of maturing the business within Kraken or key aspects of that business?

Speaker #3: So it just takes us time to migrate that and get that benefit. But we definitely see value in acquiring more customers and migrating them onto our platform.

Speaker #1: Yes, I know what I was saying. We're just pleased that we're through that transformation. The teams are continuing to focus on that continuous improvement every day, and that will continue to provide opportunities for us going forward.

Speaker #5: I mean, obviously the legal separation is complete. And I guess where I'm coming from is this purely market-driven right now or are there additional factors at play in terms of maturing the business within Kraken or key aspects of that business?

Jon Briskin: That's-

Frank Calabria: And obviously, yeah. And obviously, we are pleased that we are through that transformation. The teams are continuing to focus on that continuous improvement every day, and that will continue to provide opportunities for us going forward.

Speaker #3: Right. Thanks, Frank. Continue. Cheers.

Speaker #1: Thanks, Nick.

Speaker #4: Oh, I think there's look, that was obviously a key step. You could see set up independent management team a team focused on all of the aspects that would be associated with listing including US GAAP, all of the reporting requirements.

Speaker #2: Thank you. Your next question comes from Gordon Ramsey from Morgan's Financial. Please go ahead.

Frank Calabria: Well, I think that was obviously a key step. You could see the setup, independent management team, a team focused on all of the aspects that would be associated with listing, including U.S. GAAP, all of the reporting requirements. They are all underway. They have been for some time, but that's key. They have just got to continue to deliver on their growth. Then the board will make a call. There is work underway, Gordon, as you would know, to prepare a business for IPO that continues, just to be ready, then there will be a decision based on market at the right time. Yeah, there's work underway, but that's in train and you would expect them to be delivering against that. They have got an experienced team that have been through this before that are now focused on that.

Nik Burns: Right. Thanks, Frank and team. Cheers.

Frank Calabria: Thanks, Nik.

Operator: Thank you. Your next question comes from Gordon Ramsay from RBC Capital Markets. Please go ahead.

Speaker #3: Sorry, that's RBC Capital Markets. Frank and Tony, thanks very much for the presentation today. Just on Kraken, and I'm not asking you for an exact date, but I just want to get my head around what's required to be in a position to IPO it or spin it off.

Gordon Ramsay: Sorry, that's RBC Capital Markets. Frank and Tony, thanks very much for the presentation today. Just on Kraken, I am not asking you for an exact date, but I just want to get my head around what's required to be in a position to IPO it or spin it off. Obviously, the legal separation's complete. I guess where I am coming from, is this purely market-driven right now, or are there additional factors at play in terms of maturing the business within Kraken or key aspects of that business?

Speaker #4: They're all underway. They have been for some time. But that's key. They've just got to continue to deliver on their growth. And then the board will make a call.

Speaker #4: But there's work there is work underway, Gordon, as you would know, to prepare a business for IPO. That continues. And just to be ready.

Speaker #3: I mean, obviously, the legal separation is complete. And I guess where I'm coming from is: is this purely market-driven right now, or are there additional factors at play in terms of maturing the business within Kraken or key aspects of that business?

Speaker #4: And then there will be a decision based on market at the right time. But yeah, there's work underway. But that's in train and you would expect them to be delivering against that.

Speaker #1: Oh, I think there’s—look, that was obviously a key step. You can see we set up an independent management team—a team focused on all of the aspects that would be associated with listing, including US GAAP and all of the reporting requirements.

Speaker #4: And they've got an experienced team that have been through this before. That are now focused on that.

Frank Calabria: Well, I think there's. Look, that was obviously a key step. You could see the set up, independent management team. A team focused on all of the aspects that would be associated with listing, including US GAAP, all of the reporting requirements. They are all underway. They have been for some time, but that's key. They have just got to continue to deliver on their growth, and then the board will make a call. There is work underway, Gordon, as you would know, to prepare a business for IPO that continues, and just to be ready, and then there will be a decision based on market at the right time. Yeah, there's work underway, but that's in train, and you would expect them to be delivering against that, and they have got an experienced team that have been through this before that are now focused on that.

Speaker #5: That's still pretty vague, Frank. Is it like a six-month, 12-month, 18-month?

Gordon Ramsay: That is still pretty vague, Frank. Is it like a 6-month, 12-month, 18-month kind of time?

Speaker #4: Yeah. I think that will be a decision for the board. There's been no committed timeframe. In terms of it being ready, I would expect that it would be ready over that type of timeframe.

Frank Calabria: Yeah. I think that will be a decision for the board. There has been no committed timeframe. In terms of it being ready, I would expect that it would be ready over that type of timeframe. As to when we make a call, I think it will be dependent on when the board, there is no fixed timeframe committed to by the board. But if you are asking it for it to be ready to go for it, I would expect over the next 12 months it would be ready and then we would make a call. In the meantime, it has got to continue to focus on growing customer accounts, growing into new markets, and it has got to deliver those things as well. But there is no final decision by the board. But you can clearly see we have separated the business, we have raised equity in it.

Speaker #1: They're all underway. They have been for some time, but that's key. They've just got to continue to deliver on their growth, and then the board will make a call.

Speaker #4: As to when we make a call, I think it will be dependent on when the board there's no fixed timeframe committed to by the board.

Speaker #1: But there is work underway, Gordon, as you would know, to prepare a business for IPO. That continues, just to be ready.

Speaker #4: But if you're asking it for it to be a ready to go for it, I would expect over the next 12 months, it would be ready.

Frank Calabria: There is work underway, Gordon, as you would know, to prepare a business for IPO that continues, and just to be ready, and then there will be a decision based on market at the right time. Yeah, there's work underway, but that's in train, and you would expect them to be delivering against that, and they have got an experienced team that have been through this before that are now focused on that.

Speaker #4: And then we would make a call. And in the meantime, it's got to continue to focus on growing customer accounts, growing into new markets.

Speaker #1: And then there will be a decision based on the market at the right time. But yeah, there's work underway. That's in train, and you would expect them to be delivering against that.

Speaker #4: And it's got to deliver those things as well. But there's no final decision by the board. But you can clearly see we've separated the business.

Speaker #1: And they've got an experienced team that has been through this before, that is now focused on that.

Speaker #4: We've raised equity in it. It has a different shareholder base and everyone will make a decision at the right time.

Speaker #3: That's still pretty vague, Frank. Is it like a 6-month, 12-month, 18-month thing?

Frank Calabria: It has a different shareholder base, and everyone will make a decision at the right time.

Speaker #5: Excellent. No, thank you. And just one more for me. I'm really interested in your view on how batteries and gas are working at the moment and whether we're looking at this as a or you are looking at this as a temporary benign kind of market reaction or is there actually a long-term structural change here where batteries will increasingly displace gas in the market?

Speaker #1: Yeah, I think that will be a decision for the Board. There’s been no committed timeframe. In terms of it being ready, I would expect that it would be ready over that type of timeframe.

Gordon Ramsay: That's still pretty vague, Frank. Is it like a six-month, 12-month, 18-month kind of time?

Gordon Ramsay: Excellent. No, thank you. Just one more from me. I am really interested in your view on how batteries and gas are working at the moment and whether we are looking at this as a, or you are looking at this as a temporary benign kind of market reaction, or is there actually a long-term structural change here where batteries will increasingly displace gas in the market?

Frank Calabria: Yeah. I think that will be a decision for the board. There has been no committed timeframe. In terms of it being ready, I would expect that it would be ready over that type of timeframe. As to when we make a call, I think it will be dependent on when the board. There is no fixed timeframe committed to by the board, but if you are asking it for it to be ready to go for it, I would expect over the next 12 months it would be ready, and then we would make a call. In the meantime, it has got to continue to focus on growing customer accounts, growing into new markets, and it has got to deliver those things as well. There is no final decision by the board, but you can clearly see we have separated the business, we have raised equity in it.

Speaker #1: As to when we make a call, I think it will be dependent on when the board—there's no fixed timeframe committed to by the board.

Speaker #1: But if you're asking for it to be ready to go, I would expect that over the next 12 months, it would be ready.

Speaker #1: And then we would make a call. In the meantime, it's got to continue to focus on growing customer accounts, expanding into new markets, and delivering those things as well.

Speaker #4: Yeah. That's a good question. I might do you want to give a bit of a view on the wholesale market and then we'll.

Frank Calabria: Yeah. Good question. Do you want to give a bit of a view on the wholesale market and then we will

Frank Calabria: In the meantime, it has got to continue to focus on growing customer accounts, growing into new markets, and it has got to deliver those things as well. There is no final decision by the board, but you can clearly see we have separated the business, we have raised equity in it. It has a different shareholder base, and everyone will make a decision at the right time.

Speaker #7: Yeah. So I think as Frank highlighted, I think in the summer where you've got plentiful with solar, then batteries will do that daily shifting of supply, if I can call it that.

Speaker #1: But there's no final decision by the Board, but you can clearly see we've separated the business. We've raised equity in it, it has a different shareholder base, and everyone will make a decision at the right time.

Tony Lucas: Yeah. So I think as Frank Calabria highlighted, I think in the summer where you have got plentiful renewable output, particularly with solar, then batteries will do that daily shifting of supply, if I can call it that. Less need to run, as Frank Calabria highlighted in that chart, gas in the summer. Where we do see it differently is the winter, and we have come through, I think two sort of, there is two or three things in the market that we have just seen this winter that I do not think necessarily hold going forward. As one is, you expect the weather to mean revert at some stage. We went through a particularly warm summer. Gas storage was high, gas prices were low. That is the second thing. Gas was quite plentiful.

Speaker #3: Excellent, well thank you. And just one more from me—I'm really interested in your view on how batteries and gas are working at the moment, and whether we're looking at this as a, or you are looking at this as a, temporary benign kind of market reaction, or is there actually a long-term structural change here where batteries will increasingly displace gas in the market?

Frank Calabria: It has a different shareholder base, and everyone will make a decision at the right time.

Speaker #7: And so less need to run as Frank highlighted in that chart. Gas in the summer. Where we do see it differently is the winter.

Speaker #7: And we have come through I think two sort of there's two or three things in the market that we've just seen this winter that I don't think necessarily hold going forward.

Speaker #7: As one is you expect the weather to mean revert at some stage. We went through a particularly warm summer. Gas storage was high. Gas prices were low.

Speaker #1: Yeah, that's a good question. Do you want to give a bit of a view on the wholesale market, and then we'll...?

Speaker #3: Yeah, so I think, as Frank highlighted, in the summer when you've got plentiful renewable output, particularly with solar, then batteries will do that daily shifting of supply, if I can call it that.

Frank Calabria: Yeah. Good question. I might. Do you want to give a bit of a view on the wholesale market and then we will?

Speaker #7: So that's the second thing. Gas was quite plentiful. And then the third thing is you had very high coal availability and when we look at the future, there'll be less coal.

Tony Lucas: Yeah. I think as Frank highlighted, I think in the summer where you have plentiful renewable output, particularly with solar, then batteries will do that daily shifting of supply, if I can call it that. Less need to run, as Frank highlighted in that chart, gas in the summer. Where we do see it differently is the winter, and we have come through I think two, there is two or three things in the market that we have just seen this winter that I do not think necessarily hold going forward. One is, you expect the weather to mean revert at some stage. We went through a particularly warm summer. Gas storage was high, gas prices were low. That is the second thing. Gas was quite plentiful.

Tony Lucas: The third thing is you had very high coal availability and when we look at the future, there will be less coal. It gets older, so it has less availability. We do see the gas market at some stage sort of tightening. We obviously see the gas reservation policy to play in there. We see the weather mean reverting. So we do see gas having to play a role in those longer duration as renewables come on, but that is just something we have not seen this winter.

Speaker #7: It gets older. So it's less it has less availability. We do see the gas market at some stage sort of tightening. We obviously the gas reservation policy to play in there.

Speaker #3: And so, less need to run, as Frank highlighted in that chart—gas in the summer. Where we do see it differently is the winter.

Speaker #3: And we have come through, I think, two—there's two or three things in the market that we've just seen this winter that I don't think necessarily hold going forward.

Speaker #7: And we see the weather mean reverting. So we do see gas having to play a role. And those longer duration as renewables come on.

Speaker #7: But that's just something we haven't seen this winter.

Speaker #3: As one is, you expect the weather to mean-revert at some stage. We went through a particularly warm summer. Gas storage was high, and gas prices were low.

Speaker #5: Thank you, Tony.

Tony Lucas: One is, you expect the weather to mean revert at some stage. We went through a particularly warm summer. Gas storage was high, gas prices were low. That is the second thing. Gas was quite plentiful. The third thing is you had very high coal availability and when we look at the future, there will be less coal. It gets older, so it has less availability. We do see the gas market at some stage tightening. Obviously, the gas reservation policy to play in there.

Gordon Ramsay: Thank you, Charlie.

Gordon Ramsay: Thank you, Tony.

Speaker #2: Thank you. Your next question comes from Tom Wellington from Citigroup. Please go ahead.

Operator: Thank you. Your next question comes from Tom Wallington from Citigroup. Please go ahead.

Speaker #3: So, that's the second thing—gas was quite plentiful. And then the third thing is you had very high coal availability, and when we look at the future, there'll be less coal.

Speaker #6: Hi Frank and the team. Thanks for the call. Just wanted to ask a question on Yanko Delta and noting that you've described the project as being increasingly challenged.

Tom Wallington: Hi, Frank and the team. Thanks for the call. Just wanted to ask a question on Yanco Delta and noting that you have described the project as being increasingly challenged even with CIS support. Can you just give us a bit more color as to what these key commercial hurdles are and clarify that you are still working towards that H2 calendar year 2026 FID decision date? I guess more broadly, we all know Yanco Delta is a tier 1 wind resource and it will go a long way in replacing generation capacity once Eraring does come out. From my view, the market does seem to implicitly be pricing in coal for longer.

Tony Lucas: The third thing is you had very high coal availability and when we look at the future, there will be less coal. It gets older, so it has less availability. We do see the gas market at some stage tightening. Obviously, the gas reservation policy to play in there. We see the weather mean reverting. So, we do see gas having to play a role in those longer duration as renewables come on. But that is just something we have not seen this winter.

Speaker #6: Even with this support, can you just give us a bit more color as to what these key commercial hurdles are and clarify that you're still working towards that second half calendar year 26 FID decision date?

Speaker #3: It gets older, so it has less availability. We do see the gas market at some stage sort of tightening. We obviously have the gas reservation policy to play in there.

Speaker #6: I guess more broadly, we all know Yanko Delta is a T1 wind resource. And it will go a long way in replacing generation capacity once a roaring does come out.

Speaker #3: And we see the weather mean reverting, so we do see gas having to play a role, and those longer duration as renewables come on.

Tony Lucas: We see the weather mean reverting. So, we do see gas having to play a role in those longer duration as renewables come on. But that is just something we have not seen this winter.

Speaker #3: But that's just something we haven't seen this winter. Thank you, Tony.

Speaker #6: I mean, from my view, the market does seem to implicitly be pricing in coal for longer. However, if we do assume that we're working towards that April 2029 or our enclosure date, is it the case that CIS support needs to step up or is it a case that customers really need to reset expectations and we see a re-rate of Ford swaps and caps?

Speaker #2: Thank you. Your next question comes from Tom Wellington from Citigroup. Please go ahead.

Tom Wallington: However, if we do assume that we are working towards that April 2029 Eraring closure date, is it the case that CIS support needs to step up or is it a case that customers really need to reset expectations and we see a re-rate of forward swaps and CAPs? Thank you.

Frank Calabria: Thank you, Charlie.

Gordon Ramsay: Thank you, Charlie.

Speaker #1: Hi, Frank and the team. Thanks for the call. I just wanted to ask a question on Yanco Delta, and noting that you've described the project as being increasingly challenged.

Operator: Thank you. Your next question comes from Tom Wallington from Citigroup. Please go ahead.

Tom Wallington: Hi, Frank and the team. Thanks for the call. Just wanted to ask a question on Yanco Delta, and noting that you've described the project as being increasingly challenged even with Capacity Investment Scheme support. Can you just give us a bit more color as to what these key commercial hurdles are, and clarify that you're still working towards that H2 calendar year 2026 FID decision date? I guess, more broadly, we all know Yanco Delta is a tier 1 wind resource, and it will go a long way in replacing generation capacity once Eraring does come out. From my view, the market does seem to implicitly be pricing in coal for longer.

Speaker #1: Even with this support, can you just give us a bit more color as to what these key commercial hurdles are, and clarify that you're still working towards that second-half calendar year 2026 FID decision date?

Speaker #6: Thank you.

Speaker #4: Yeah. Thanks, Tom. So firstly, a couple of opening remarks. I'll get Andrew to add to this. We agree with you. It's a T1 project.

Frank Calabria: Yeah. Thanks, Tom. Firstly, a couple of opening remarks. I will get Andrew to add to this. We agree with you, it is a tier 1 project. The market is going to need more wind energy to be built. Therefore we continue to focus on bringing it to a final investment decision. My comments previously are that the cost of building those assets has risen, and you have got very low wholesale prices now. Clearly we have to work through that, and that makes that challenging for new build economics right now. We have also got segments of the market that are going to need to bring new renewable energy on it, including data centers, so there is also that aspect associated with it.

Speaker #4: The market is going to need more wind energy to be built. And therefore, we continue to focus on bringing it to a final investment decision.

Speaker #1: I guess, more broadly, we all know Yanco Delta is a Tier 1 wind resource, and it will go a long way in replacing generation capacity once Araring does come out.

Speaker #4: My comments previously are that the cost of building those assets has risen. And you've got very low wholesale prices now. So clearly, we have to work through that.

Speaker #1: I mean, from my view, the market does seem to implicitly be pricing in coal for longer. However, if we do assume that we're working towards that April 2029 Eraring closure date, is it the case that CIS support needs to step up, or is it a case that customers really need to reset expectations and we see a re-rate of forward swaps and caps?

Speaker #4: And that makes that challenging for new build economics right now. We've also got segments of the market that are going to need to bring new renewable energy on it, including data centers.

Tom Wallington: From my view, the market does seem to implicitly be pricing in coal for longer. However, if we do assume that we're working towards that April 2029 Eraring closure date, is it the case that Capacity Investment Scheme support needs to step up, or is it a case that customers really need to reset expectations and we see a re-rate of forward swaps and caps? Thank you.

Tom Wallington: However, if we do assume that we're working towards that April 2029 Eraring closure date, is it the case that Capacity Investment Scheme support needs to step up, or is it a case that customers really need to reset expectations and we see a re-rate of forward swaps and caps? Thank you.

Speaker #4: So there's also that aspect associated with it. I'll get Andrew to talk about that because clearly, I get Andrew to talk about Yanko Delta itself because we are very focused on getting its economics as attractive as it possibly can be because we know the market's going to need it.

Frank Calabria: I will get Andrew to talk about that because clearly, I will get Andrew to talk about Yanco Delta itself because we are very focused on getting its economics as attractive as it possibly can be because we know the market is going to need it, and that is our focus right now.

Speaker #1: Thank you. Yeah, thanks, Tom. So, firstly, a couple of opening remarks. I'll get Andrew to add to this. We agree with you, it's a T1 project.

Frank Calabria: Yeah. Thanks, Tom. So firstly, a couple of opening remarks. I'll get Andrew to add to this. We agree with you, it's a tier 1 project. The market is going to need more wind energy to be built. Therefore we continue to focus on bringing it to a final investment decision. My comments previously are that the cost of building those assets has risen, and you've got very low wholesale prices now. Clearly we have to work through that, and that makes that challenging for new build economics right now. We've also got segments of the market that are going to need to bring new renewable energy on it, including data centers. So there's also that aspect associated with it.

Speaker #4: And that's our focus right now.

Speaker #1: The market is going to need more wind energy to be built, and therefore, we continue to focus on bringing it to a final investment decision.

Speaker #7: Yeah. I'll just jump in there. So I mean, we're actually pretty pleased with the progress that Yanko is making from just a pure project hitting milestones perspective.

Andrew Thornton: Yeah. I will just jump in there. We are actually pretty pleased with the progress that Yanco is making from a pure project hitting milestones perspective. But as we have talked about, there are some cost challenges that are emerging, that make it challenging even with CIS support. I do not think-

Speaker #1: My previous comments are that the cost of building those assets has risen, and you've got very low wholesale prices now. So clearly, we have to work through that.

Speaker #7: But as we've talked about, there's some cost challenges that are emerging. That make a challenging even with CIS support. And so I don't think we will take FID when we get to a point that it makes sense and it's economic and we can allocate capital to it.

Speaker #1: And that makes it challenging for new build economics right now. We've also got segments of the market that are going to need to bring new renewable energy on, including data centers.

Andrew Thornton: We will take FID when we get to a point that it makes sense and it is economic and we can allocate capital to it. What that means is we have got to work on costs. We have got to find opportunities to lower that cost. We have talked about that we will be using, and desire to use, third-party capital, and we will need to identify and secure a capital partner for that asset as well. That will take the time it takes. I think back to Eraring, as I said, the system does need wind. For us, though, based on the 29 April date, Yanco wouldn't be in place by that time anyway, and we have a portfolio which is flexible enough, both with the assets that we have and the contracts and market positions we have to manage Eraring coming out at that time.

Frank Calabria: We've also got segments of the market that are going to need to bring new renewable energy on it, including data centers. So there's also that aspect associated with it. I'll get Andrew to talk about that because I'll get Andrew to talk about Yanco Delta itself because we are very focused on getting its economics as attractive as it possibly can be, because we know the market's going to need it, and that's our focus right now.

Speaker #1: So there's also that aspect associated with it. I'll get Andrew to talk about that because, clearly, I'll get Andrew to talk about Yanco Delta itself, because we are very focused on getting its economics as attractive as it possibly can be, because we know the market's going to need it.

Speaker #7: What that means is we've got to work on cost. We've got to fund opportunities to lower that cost. We've talked about that we'll be using and desire to use third-party capital and so we'll need to identify and secure a capital partner for that asset as well.

Frank Calabria: I'll get Andrew to talk about that because I'll get Andrew to talk about Yanco Delta itself because we are very focused on getting its economics as attractive as it possibly can be, because we know the market's going to need it, and that's our focus right now.

Speaker #1: And that's our focus right now.

Speaker #4: Yeah, I'll just jump in there. So, I mean, we're actually pretty pleased with the progress that Yanco is making from just a pure project-hitting-milestones perspective.

Speaker #7: And that'll take the time it takes. I think back to a roaring as I said, the system does need wind. For us though, based on the April 29 date, I mean, Yanko wouldn't be in place by that time anyway.

Andrew Thornton: Yeah. I will just jump in there. We are actually pretty pleased with the progress that Yanco is making from just a pure project hitting milestones perspective. But as we have talked about, there are some cost challenges that are emerging, that make it challenging even with CIS support. I do not think we will take FID. We will take FID when we get to a point that it makes sense and it is economic and we can allocate capital to it. What that means is we have got to work on costs. We have got to find opportunities to lower that cost. We have talked about that we will be using and desire to use third-party capital. We will need to identify and secure a capital partner for that asset as well, and that will take the time it takes. I think back to Eraring, as I said, the system does need wind.

Speaker #4: But as we've talked about, there are some cost challenges that are emerging that make it challenging, even with CIS support. So I don't think we will take FID until we get to a point where it makes sense, it's economic, and we can allocate capital to it.

Speaker #7: And so we have a portfolio which is flexible enough both with the assets that we have and the contracts and market positions we have to manage a roaring coming out at that time.

Speaker #6: Great. Thanks, guys.

Speaker #4: What that means is we've got to work on cost. We've got to find opportunities to lower that cost. We've talked about that—we'll be using, and desire to use, third-party capital, and so we'll need to identify and secure a capital partner for that asset as well.

Frank Calabria: Great. Thanks, guys.

Tom Wallington: Great. Thanks, guys.

Speaker #2: Thank you. Your next question comes from Cameron Needham from Bank of America. Please go ahead.

Operator: Thank you. Your next question comes from Cameron Needham from Bank of America. Please go ahead.

Speaker #8: Yeah. Morning all. Thank you for the presentation. I think most of the key questions have been asked. So just one question from me. You've highlighted the JCC hedge position in FY27.

Andrew Thornton: We have talked about that we will be using and desire to use third-party capital. We will need to identify and secure a capital partner for that asset as well, and that will take the time it takes. I think back to Eraring, as I said, the system does need wind. For us, though, based on the April 2029 date, Yanco would not be in place by that time anyway. We have a portfolio which is flexible enough, both with the assets that we have and the contracts and market positions we have to manage Eraring coming out at that time.

Cameron Needham: Yeah, morning, all. Thank you for the presentation. I think most of the key questions have been asked, so just one question from me. You've highlighted the JCC hedge position in FY27. I'm just keen to ask, what level of commodity price exposure are you comfortable running over the medium term? And more broadly, is there any temptation to change hedging policy going forward, just given the impact that you realized or expect to realize in FY27? Thanks.

Speaker #4: And that'll take the time it takes. I think back to, as I said, the system does need wind. For us, though, based on the April 29 date, I mean, Yanco wouldn't be in place by that time anyway.

Speaker #8: I'm just keen to ask what level of commodity price exposure you're comfortable running over the medium term. And I guess more broadly, is there any temptation to change hedging policy going forward just given the impact that you realized or expect to realize in FY27?

Andrew Thornton: For us, though, based on the April 2029 date, Yanco would not be in place by that time anyway. We have a portfolio which is flexible enough, both with the assets that we have and the contracts and market positions we have to manage Eraring coming out at that time.

Speaker #4: And so we have a portfolio which is flexible enough, both with the assets that we have and the contracts and market positions we have, to manage a roaring coming out at that time.

Speaker #8: Thanks.

Speaker #7: Yeah. Thanks, Cameron. Yeah. So we put those hedges in basically when we saw the JCC price trend up at least initially. The thinking there was that our outlook particularly at the time pre the Middle East crisis was both the gas and the oil markets looked oversupplied from our sort of macroeconomic view.

Tony Lucas: Yeah, thanks, Cameron. Yeah, we put those hedges in basically when we saw the JCC price trend up, at least initially. The thinking there was that our outlook, particularly at the time, pre the Middle East crisis, was both the gas and the oil markets looked oversupplied from our macroeconomic view. The opportunity to lock in some hedging at higher prices and protect us from that oversupply was what we looked at. It wasn't necessary, in this case, balance sheet driven, given our balance sheet was so strong. I think in hindsight, obviously would have rather been exposed to those prices.

Speaker #1: Great. Thanks, guys.

Speaker #2: Thank you. Your next question comes from Cameron Needham from Bank of America. Please go ahead.

Tom Wallington: Great. Thanks, guys.

Operator: Thank you. Your next question comes from Cameron Needham from Bank of America. Please go ahead.

Speaker #5: Yeah. Morning, all. Thank you for the presentation. I think most of the key questions have been asked, so just one question from me. You've highlighted the JCC hedge position in FY27.

Cameron Needham: Yeah. Morning, all. Thank you for the presentation. I think most of the key questions have been asked, so just one question from me. You have highlighted the JCC hedge position in FY27. I am just keen to ask, what level of commodity price exposure are you comfortable running over the medium term? More broadly, is there any temptation to change hedging policy going forward, just given the impact that you realized or expect to realize in FY27? Thanks.

Speaker #5: I'm just keen to ask: what level of commodity price exposure are you comfortable running over the medium term? And I guess more broadly, is there any temptation to change hedging policy going forward, just given the impact that you realized or expect to realize in FY27?

Speaker #7: And so the opportunity to lock in some hedging at higher prices and protect us from that oversupply was what we looked at. It wasn't necessary in this case balance sheet driven given our balance sheet was so strong.

Speaker #7: I think in hindsight, obviously would have rather been exposed to those prices. So look, I think we sort of see the oil market and the APL&G, our exposure to APL&G in that market as a market where we can hedge and firm up some cash flows through time to help manage the balance sheet when it's perhaps a little tighter.

Speaker #5: Thanks.

Speaker #4: Yeah. Thanks, Cameron. Yeah, so we put those hedges in basically when we saw the JCC price trend up, at least initially. The thinking there was that our outlook, particularly at the time—pre the Middle East crisis—was that both the gas and the oil markets looked oversupplied from our sort of macroeconomic view.

Tony Lucas: Yeah. Thanks, Cameron. Yeah. We put those hedges in basically when we saw the JCC price trend up, at least initially. The thinking there was that our outlook, particularly at the time, pre the Middle East crisis, was both the gas and the oil markets looked oversupplied from our macroeconomic view. The opportunity to lock in some hedging at higher prices and protect us from that oversupply was what we looked at. It was not necessarily, in this case, balance sheet driven, given our balance sheet was so strong. I think in hindsight, obviously would have rather been exposed to those prices.

Tony Lucas: Well, I think we sort of see the oil market and the APLNG, our exposure to APLNG in that market as a market where we can hedge and firm up some cash flows through time to help manage the balance sheet when it's perhaps a little tighter. But we're not in that position at the moment. Looking forward, I'd say from here, we'll have a much lower hedge position, at least once those hedges roll off in 2027.

Speaker #7: But we're not in that position at the moment. So looking forward, I'd say from here, we'll have a much lower hedge position at least in once those hedges roll off in 27.

Speaker #4: And so the opportunity to lock in some hedging at higher prices and protect us from that oversupply was what we looked at. It wasn't necessary in this case—balance sheet driven—given our balance sheet was so strong.

Speaker #8: Great. Appreciate the cover. Thanks very much all.

Cameron Needham: Great. Appreciate the color. Thanks very much, all.

Speaker #4: I think, in hindsight, obviously, we would have rather been exposed to those prices. So, look, I think we sort of see the oil market and the APLNG exposure to APLNG in that market as a market where we can hedge and firm up some cash flows through time to help manage the balance sheet when it's perhaps a little tighter.

Speaker #4: Thanks, Cameron.

Speaker #2: Thank you. There are no further questions at this time. I'll now hand back to Frank Calabrio for any closing remarks.

Tony Lucas: Thanks, Cameron.

Operator: Thank you. There are no further questions at this time. I will now hand back to Frank Calabria for any closing remarks.

Speaker #4: Thanks very much for your time, everyone. We look forward to meeting investors and analysts over the coming days. And we know everyone's got a busy day today.

Frank Calabria: Thanks very much for your time, everyone. We look forward to meeting investors and analysts over the coming days. We know everyone has a busy day today, so we will leave it there. Thanks very much.

Tony Lucas: Well, I think we sort of see the oil market and the APLNG, our exposure to APLNG in that market as a market where we can hedge and firm up some cash flows through time to help manage the balance sheet when it is perhaps a little tighter. We are not in that position at the moment. Looking forward, I would say from here, we will have a much lower hedge position, at least once those hedges roll off in 2027.

Speaker #4: But we're not in that position at the moment. So, looking forward, I'd say from here we'll have a much lower hedge position, at least once those hedges roll off in '27.

Speaker #5: Great. Appreciate the cover. Thanks very much, all.

Speaker #1: Thanks, Cameron.

Speaker #2: Thank you. There are no further questions at this time. I'll now hand back to Frank Calabria for any closing remarks.

Cameron Needham: Great. Appreciate the color. Thanks very much, all.

Frank Calabria: Thanks, Cameron.

Operator: Thank you. There are no further questions at this time. I will now hand back to Frank Calabria for any closing remarks.

Speaker #1: Thank you very much for your time, everyone. We look forward to meeting investors and analysts over the coming days, and we know everyone has a busy day today.

Frank Calabria: Thanks very much for your time, everyone. We look forward to meeting investors and analysts over the coming days. We know everyone has got a busy day today, so we will leave it there. Thanks very much.

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