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Internal candidate to replace King in Origin Energy's top job

Friday, 9 Sep 2016 09:47:06 | Stephen Letts

Origin CEO Grant King will leave the job next month after 16 years in charge. (ABC TV: Inside Business)

Origin Energy has ended its search to replace veteran chief executive Grant King by tapping his long time offsider and head of energy markets Frank Calabria for the top job.

Mr King will leave Origin next month after 16 years running the company, its only leader since the being spun out of the conglomerate Boral in 2000.

Mr King's last day on the job will be the company's AGM on October 19.

Mr Calabria joined Origin in 2001 as chief financial officer and was appointed head of the company's energy markets division in 2009.

The energy markets division has long been the Origin's core business, covering generation and retailing of electricity and gas to around 4.2 million domestic customers.

Mr Calabria's key responsibilities will include an ongoing debt reduction program as well as overseeing the completion of the $24.5 billion APLNG project in Gladstone, which has been weighing heavily on the company's outlook as gas prices tumbled in recent years.

Origin holds a 37.5 per cent stake in the project along with joint venture partners, Conoco Phillips and China's Sinopec.

Origin chairman Gordon Cairns said the company had been preparing for Mr King's retirement for some time.

Debt reduction the key issue for Origin

Origin enjoyed a prolonged period of growth under Mr King's leadership, since starting its corporate life as Boral's old LPG business, growing from about $1 a share in 2000 to a peak of $15 in 2011 before the collapse in oil prices and rising debt concerns hit.

"The past year has been a transitional one for Origin with good progress being made in debt reduction following last year's fall in oil prices," Mr Cairns said.

"The company's focus in the short term remains on accelerating debt reduction and improving returns."

Mr Calabria said his mandate to cut debt and improve performance is clear.

"This twin focus will improve returns for shareholders and position us to drive medium term growth in a rapidly changing energy market, while delivering on the major potential for the major investment that has been made in APLNG," Mr Calabria said.

The market welcomed the news, with Origin shares jumping more than 5 per cent to $5.39 at 11:30am (AEST), also boosted by an overnight jump in oil prices.

AustraliaPlus


 

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