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Highlights
- Statutory profit reaches A$1,017 million for H1 FY2025, a solid rise from the previous year.
- Integrated Gas and LNG trading drive higher earnings despite weaker Energy Markets performance.
- Octopus Energy’s continued success positions the company for strong growth in the UK and globally.
Origin Energy (ASX:ORG) has announced a strong performance for the first half of FY2025, with a statutory profit of A$1,017 million, marking an increase from A$995 million in the same period the previous year. The underlying profit for the company rose significantly to A$924 million, up from A$747 million, primarily driven by improved earnings from its Integrated Gas division, particularly in LNG trading, as well as reduced tax expenses. However, the company saw a decline in its underlying EBITDA, which dropped to A$1,926 million from A$1,995 million.
One of the most notable aspects of Origin’s performance was its robust earnings from Australia Pacific LNG, contributing A$612 million in fully franked dividends to the company during the period. This reflects the continued success of Origin's strategic investments in energy infrastructure and its position in the Australian gas market.
However, the company’s free cash flow saw a net outflow of A$552 million, mainly due to increased capital expenditure associated with its battery investment program. Despite this, Origin’s overall business remained resilient, with a strong balance sheet that supported further investments into the company’s energy transition initiatives.
CEO Frank Calabria expressed satisfaction with the company’s performance, noting that the increase in earnings from Integrated Gas helped offset weaker results from Energy Markets and Octopus Energy. The company also made notable progress on its goal to add 4-5 GW of renewables and storage to its portfolio by 2030, with significant investments already made in battery storage projects and wind initiatives.
In Energy Markets, although earnings were lower than expected due to reduced wholesale prices and rising coal supply costs, Origin’s position as Australia’s leading energy retailer remains strong. The company added 57,000 new customer accounts, continuing its focus on delivering value and customer satisfaction.
Meanwhile, Octopus Energy (ASX:OCT) has continued its impressive growth, becoming the largest energy retailer in the UK with 13.3 million accounts. With Kraken, its technology platform, expanding rapidly across the globe, Octopus is set to surpass 100 million contracted accounts ahead of schedule, positioning the company for substantial recurring revenue.
The board has declared a fully franked interim dividend of 30 cents per share, which will be paid on March 28, 2025, to shareholders on record by March 5, 2025. Origin’s strategic focus on both domestic and international growth, along with its commitment to renewable energy, positions the company well for long-term success in the evolving energy landscape.
