Grant King exits Origin Energy as Frank Calabria steps up to CEO role

Origin Energy has announced that former CFO Frank Calabria will replace long-serving chief executive Grant King.

Outgoing Origin CEO Grant King will be replaced by Frank Calabria, the head of Origin’s energy markets unit, next month. (Britta Campion)

Origin Energy has confirmed the retirement of longtime chief executive Grant King, naming internal candidate Frank Calabria as his replacement.

Mr Calabria is currently serving as head of Origin’s energy markets unit.

The Australian’s Data Room column flagged the likely hiring of Mr Calabria earlier this week, after reporting that Origin was on the lookout for a new CEO back in May. Mr King will end his 16 years at the helm of the group when Mr Calabria takes the reins after this year’s AGM on October 19. Mr King will formally depart the business at the end of October.

The outgoing chief executive was Origin’s inaugural leader after it split from Boral in 2000.

“The board has been preparing for Mr King’s retirement for some time,” Origin chairman Gordon Cairns said.

“The board has undertaken an extensive process including a global search for external candidates along with a thorough review and benchmarking of internal candidates and is delighted to appoint Mr Calabria.”

Mr Cairns said the timing made sense given the progress at Origin’s flagship LNG project and moves to shore up its balance sheet in the wake of the oil price drop.

“The past year has been a transitional one for Origin with good progress made on debt reduction following last year’s fall in oil price,” he said.

“We are also expecting completion of APLNG’s LNG project in the next few months. With good progress on these two important priorities it is now an appropriate time for change of leadership at Origin.”

Mr Calabria joined Origin as chief financial officer in 2001 and assumed his current role as chief executive of the energy markets operation in 2009.

He said the focus on debt reduction would remain as he assumes control of the company.

“The issues are clear: cut debt and improve performance,” Mr Calabria said.

“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 potential for the major investment that has been made in APLNG.”