Origin shares rise after half-year profit surge
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More news: Shares in Origin Energy were up nearly 3% to $8.81 in early trading on the ASX after Australia's top energy retailer and gas producer posted a jump in half-year profit on the back of higher prices at its gas and electricity businesses.
UBS analyst Tom Allen said the strong first-half result "beat expectations in all divisions except Octopus Energy". He expects investors will focus on the potential uses of cash going forward, with the company committing to release a new distribution policy in the second half.
Origin first-half profit surges 149% on high energy prices
The news: Australia’s top energy retailer and gas producer Origin Energy has posted a surge in half-year profit on the back of higher realisations from its gas and electricity businesses.
The numbers: The company reported a 149% increase in statutory profit for the six months to December 2023, to $995 million. Underlying profit surged to $747 million from $44 million a year ago. Origin declared a fully-franked interim dividend of 27.5 cents a share, up from 16.5 cents a year ago.
The context: Earnings at its main energy markets business quadrupled from a year ago to $1.04 billion, which the company said reflected higher wholesale prices and lower fuel costs.
Earnings in the integrated gas business also rose 5% to $1 billion, while the loss at its Octopus Energy retail unit in the UK narrowed to $12 million. CEO Frank Calabria said he expected Origin’s strong first-half performance to carry over into the second-half. Origin expects full-year earnings in its energy markets business to be between $1.6 billion and $1.8 billion, with that figure dropping in the 2025 financial year as wholesale electricity prices fall.
The source: ASX announcement
