Origin Energy Balances LNG Headwinds With Data Centre Growth and Octopus Expansion

Origin Energy Limited ( (AU:ORG) ) just unveiled an update.

Origin Energy reported its March 2026 quarter performance across Integrated Gas, Energy Markets and Octopus Energy, showing lower production and revenue at Australia Pacific LNG, largely due to fewer days in the quarter, natural field decline, lower LNG prices and currency effects. APLNG refinanced part of its project finance facilities, reducing interest margins and deferring principal repayments in FY27 and FY28, while maintaining reliable supply to domestic and export customers.

In Energy Markets, Origin increased electricity sales by 4 per cent, driven by strong growth in business demand, particularly from data centres, even as gas volumes fell 32 per cent in line with expectations. The company has already contracted or hedged most of Eraring’s coal needs for FY27, supporting reliability during the energy transition and reinforcing its positioning in the growing data centre sector.

Octopus Energy’s FY26 EBITDA contribution to Origin is now expected in a lower range due to UK regulatory changes, higher gas capacity charges and adverse weather, underscoring earnings pressure in the near term. However, Octopus’ retail arm added about 700,000 customer accounts globally, the planned separation of Octopus Energy and Kraken remains on track, and a new Kraken joint venture with Saudi Energy opens up licensing opportunities in the Middle East and North Africa, potentially strengthening Origin’s long-term international platform exposure.

Chief executive Frank Calabria noted that global commodity markets remain volatile due to conflict in the Middle East, with impacts on oil-linked LNG prices expected to be felt from FY27, but said Australian domestic energy markets have so far remained well supplied and insulated. This combination of stable local operations, targeted hedging and coal contracting, and international growth initiatives positions Origin to navigate short-term earnings headwinds while preparing for future shifts in global energy demand.

The most recent analyst rating on (AU:ORG) stock is a Buy with a A$13.34 price target. To see the full list of analyst forecasts on Origin Energy Limited stock, see the AU:ORG Stock Forecast page.

More about Origin Energy Limited

Origin Energy Limited is an Australian energy company with operations spanning integrated gas production, electricity and gas retailing, and energy services. Through its interests in Australia Pacific LNG, its domestic Energy Markets division, and its stake in UK-based Octopus Energy, Origin focuses on supplying energy to households, businesses, and international LNG customers while expanding into data centre demand and advanced retail and platform solutions.

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