Origin Energy Surges: Half-Year Profit Hits $1 Billion

Highlights:

• Origin Energy reports a staggering 17-fold increase in underlying profit, reaching AU$747 million ($485 million) for the first half of the fiscal year.
• The company raises its full-year outlook, projecting earnings between AU$1.6 billion and AU$1.8 billion, driven by a resurgence in energy markets.
• Origin declares an interim dividend of 27.5 Australian cents per share, up from 16.5 Australian cents last year, reflecting its strong financial performance and shareholder value commitment.

H1 Underlying Profit Surpasses Expectations

Australia's Origin Energy (ASX:ORG) has reported a remarkable 17-fold increase in underlying profit, surpassing market expectations. The company's first-half profit reached AU$747 million ($485 million) for the six months ending Dec. 31, soaring from AU$44 million in the previous year.

Raised Outlook and Dividend

Origin has revised its full-year outlook upward, citing a strong performance and optimistic market conditions. The company's CEO, Frank Calabria, expressed confidence in Origin's future prospects, particularly in navigating the evolving energy landscape.

Market Response and Growth Factors

The announcement has led to a surge in Origin's share price, with a 3.9% jump in early trade. This growth reflects investor confidence in the company's resilience and strategic direction.

The remarkable profit surge is attributed to a resurgence in energy markets, driven by higher electricity prices and reduced fuel costs at coal plants. Origin's underlying earnings before interest, tax, depreciation, and amortization (EBITDA) in the energy markets segment grew almost fivefold to AU$1.04 billion.

Outlook and Expansion Plans

Origin has raised its full-year guidance for the energy markets division, projecting earnings between AU$1.6 billion and AU$1.8 billion. Additionally, the company expects a positive contribution from its gas business, including its stake in the Australia Pacific Liquefied Natural Gas (APLNG) project.

Strategic Moves and Dividend Payout

Origin's recent acquisition of a stake in UK energy retailer Octopus Energy underscores its strategic expansion plans. The company has declared an interim dividend of 27.5 Australian cents per share, marking a significant increase from the previous year.

Conclusion

Origin Energy's stellar performance in the first half of the fiscal year, along with its revised outlook and dividend payout, reflects its robust position in the energy sector. As the company continues to adapt to changing market dynamics, investors remain optimistic about its growth trajectory.

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