Origin Energy Ltd recorded statutory profit of A$1,017 million for the half year ended December 31, 2024, up from A$995 million in the prior corresponding period.
Underlying profit rose to A$924 million from A$747 million, driven by stronger earnings from Integrated Gas and lower tax expenses, which offset weaker performance in Energy Markets and Octopus Energy.
However, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) declined to A$1,926 million from A$1,995 million.
The company received fully franked dividends of A$612 million from its Australia Pacific LNG investment during the period.
Free cash flow recorded a net outflow of A$552 million, primarily due to increased capital expenditure on Origin’s battery investment program.
Strong first half
“Origin has delivered a strong first half result, with increased earnings from Integrated Gas largely offsetting lower earnings from Energy Markets and Octopus Energy," Origin CEO Frank Calabria said.
“Good cash generation from our businesses and a strong balance sheet enabled Origin to increase returns to shareholders and invest in the energy transition.
“The improved performance in Integrated Gas was primarily driven by gains in LNG trading and strong LNG sales volumes and commodity prices at Australia Pacific LNG.
"Australia Pacific LNG is a world-class asset that continues to play an important role in meeting the needs of customers, including as one of the largest gas suppliers to Australia’s east coast market.
“In Energy Markets, earnings were lower in line with expectations, as lower wholesale prices flowed through to customer tariffs and coal supply costs increased.
"Output from Eraring Power Station was relatively stable, while our gas peaking fleet lifted its output, supporting variable renewable energy and helping maintain reliable power supply for Australian households and businesses.
“Origin remains Australia’s number one energy retailer and added another 57,000 customer accounts in the half, enabled by our relentless focus on delivering great customer experiences and offering a wide range of products and services.
“Cost of living pressures continue to be felt by many households and as a leading Australian energy retailer, we are supporting our most vulnerable customers through a range of initiatives.
“At Octopus Energy, the UK retail and Kraken licensing businesses recorded another period of outstanding growth. In just 10 years, Octopus has grown to become the largest energy retailer in the UK with 13.3 million accounts, while the Kraken platform now has 62 million contracted accounts globally.
"With a compelling sales pipeline, Kraken is likely to reach 100 million contracted accounts earlier than its target date of 2027, translating to more than £500 million in annual recurring revenue.
“We are making meaningful progress towards our target of adding 4-5 GW of renewables and storage to our portfolio by 2030.
"We are progressing a portfolio of wind projects including our priority development, Yanco Delta (NSW), and have committed approximately $1.7 billion to owned battery storage projects as well as contracting the offtake from the Supernode and Summerfield batteries.
"Origin’s largest battery development, the Eraring battery, was recently approved for stage 3, resulting in the largest total dispatch duration of a battery project under construction in the Southern Hemisphere.
“Origin remains well-placed to benefit from the energy transition given our diverse portfolio, leading customer position and access to international growth through our investment in Octopus Energy.
"Continued execution of our strategy, while remaining focused on cost reduction initiatives, positions Origin to create sustained value for our shareholders and good outcomes for our customers, communities, and planet,” Calabria said.
The board has declared a fully franked interim dividend of 30 cents per share, payable on March 28, 2025. Shareholders on record as of March 5, 2025, will be eligible to receive the dividend.