Origin Energy will cut around 800 jobs and has flagged further weak earnings growth after falling oil prices contributed to a $658 million loss.
Shares in the producer and retailer plunged to a seven year low as it foreshadowed intense retail competition and outlined massive cost cuts.
That will include the loss of hundreds of corporate jobs, as Origin implements company-wide savings of $200 million.
The company shed around 1000 operations jobs over the past year as construction of its the Australia Pacific LNG project in Queensland winds down.
A $705 million impairment charge on Origin's investment in Contact Energy, and the weaker Australian dollar, contributed to Origin's annual loss, which compares to a profit of $530 million in 2013/14.
Oil prices have fallen to six-and-a-half year lows amid a global oversupply, and chairman Gordon Cairns said the company is mindful that continued weakness in prices will result in lower than expected growth in cash flow and earnings.
Origin's underlying profit fell four per cent to $682 million, while revenue from continuing operations fell seven per cent to $11.6 billion.
Its shares dropped $1.29, or 13 per cent, at $8.60.
IG market strategist Evan Lucas said the massive swing into the red was unsurprising given oil price falls and declines in retail electricity consumption.
"It was a messy result, not a brilliant result and just below consensus," he said.
"The outlook with the oil price isn't going to pick up any of the issue around the retail side. It's a tough time to bring on your tier one projects."
Origin's APLNG project is set to begin production in weeks.
Despite the large amount of Australian LNG coming on line in the coming years, chief executive Grant King says the extra supply will be soaked up by global demand.
"In respect of aggregate supply and demand it looks to us like it's in balance because there's plenty of supply to meet that demand and maybe a bit in excess," he told AAP.
"A lot of LNG that's produced today is sold into contracts that were put in place to underwrite those plans."
Mr King added that the company was comfortable with plans to reduce the nation's greenhouse emissions by at least 26 per cent by 2030, and believes an increased renewable energy target is likely.
ORIGIN SINKS INTO THE RED
* Net loss of $658m, down from $530m profit
* Revenue down 5 pct to $13.8b
* Dividend unchanged at 25 cents
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