Origin Energy Ltd
OTC:OGFGF
Origin Energy Ltd
Origin Energy Ltd, a major player in Australia's energy sector, weaves its narrative through a diverse and integrated portfolio. Born from the spinoff of the energy assets of Boral Limited in the year 2000, Origin quickly established itself as a leading force in both electricity and natural gas markets. Its operations are grounded in three core segments: Energy Markets, Integrated Gas, and Future Energy. Within the Energy Markets, Origin functions as a retail and wholesale supplier, catering to millions of customers across the country. The company capitalizes on its significant generation assets, ranging from gas-fired power stations to large-scale renewables, ensuring a balanced supply mix that contributes to its robust revenue stream.
The company's Integrated Gas division is anchored by its substantial share in the Australia Pacific LNG (APLNG) project, one of the largest producers of liquefied natural gas (LNG) in Asia-Pacific. Through APLNG, Origin plays an instrumental role in harnessing natural gas from coal seams and exporting LNG to meet the burgeoning energy demands of Asian markets. This not only bolsters their international presence but also diversifies income sources beyond domestic borders. Additionally, Origin has made strategic investments in Future Energy, exploring new technologies and sustainable solutions like battery storage and green hydrogen. This forward-looking approach positions Origin not only as a provider of conventional energy but as a pioneer in the transition towards a low-carbon future, continuously adapting its business model to align with global sustainability trends.
Origin Energy Ltd, a major player in Australia's energy sector, weaves its narrative through a diverse and integrated portfolio. Born from the spinoff of the energy assets of Boral Limited in the year 2000, Origin quickly established itself as a leading force in both electricity and natural gas markets. Its operations are grounded in three core segments: Energy Markets, Integrated Gas, and Future Energy. Within the Energy Markets, Origin functions as a retail and wholesale supplier, catering to millions of customers across the country. The company capitalizes on its significant generation assets, ranging from gas-fired power stations to large-scale renewables, ensuring a balanced supply mix that contributes to its robust revenue stream.
The company's Integrated Gas division is anchored by its substantial share in the Australia Pacific LNG (APLNG) project, one of the largest producers of liquefied natural gas (LNG) in Asia-Pacific. Through APLNG, Origin plays an instrumental role in harnessing natural gas from coal seams and exporting LNG to meet the burgeoning energy demands of Asian markets. This not only bolsters their international presence but also diversifies income sources beyond domestic borders. Additionally, Origin has made strategic investments in Future Energy, exploring new technologies and sustainable solutions like battery storage and green hydrogen. This forward-looking approach positions Origin not only as a provider of conventional energy but as a pioneer in the transition towards a low-carbon future, continuously adapting its business model to align with global sustainability trends.
Guidance Upgrade: Origin Energy upgraded its full-year Energy Markets EBITDA guidance to $1.55–1.75 billion, up from the previous $1.4–1.7 billion range, citing strong operational performance.
Solid Results: Energy Markets and Integrated Gas both delivered $860 million in EBITDA, with group underlying EBITDA at $1.589 billion and statutory profit at $557 million.
Customer Growth: Origin added 96,000 customers in the half (including acquisitions) and expects further growth with completed and upcoming acquisitions.
Battery & Storage Progress: Commissioned Eraring Stage 1 battery on time and on budget, expanded storage duration, and all other battery projects remain on track.
Dividend Maintained: Interim dividend of $0.30 per share fully franked, offering a 5.3% yield before franking benefits.
Octopus & Kraken Update: Octopus recorded a seasonal EBITDA loss of $89 million, but continues rapid customer growth; Kraken completed a major equity raise at a USD 8.65 billion valuation.
Cost Management: Cost-to-serve reduced by $32 million, and group adjusted free cash flow increased by $187 million to $705 million.
Strong Balance Sheet: Net debt to adjusted EBITDA at 2x, at the bottom end of the target range, supporting strategic flexibility.
