Origin Energy Limited Reports Strong HY25 Earnings

Origin Energy Limited ( (OGFGF) ) has released its Q2 earnings. Here is a breakdown of the information Origin Energy Limited presented to its investors.

Origin Energy Limited, an integrated energy company listed on the Australian Securities Exchange, operates across electricity, gas, LPG, broadband, and home assist services, serving 4.7 million customer accounts in Australia with a strong focus on renewable energy and community support.

Origin Energy’s latest earnings report for the half-year ending December 2024 highlights a solid financial performance despite challenges in the energy market. The company reported an increase in underlying profit to $924 million, driven by higher returns from its Integrated Gas division and lower income tax expenses, despite a decline in Energy Markets earnings.

Key financial metrics from the report include a statutory profit of $1,017 million, a 24% increase in underlying profit, and an improved underlying return on capital employed of 16.4%. The company also declared a fully franked interim dividend of 30 cents per share. Origin continues to invest in renewable energy projects, with significant progress in battery development and renewable capacity expansion.

The company is focusing on transitioning to renewable energy, with plans underway for major battery and wind projects. Origin’s commitment to the energy transition is evident in its investment of $1.7 billion in battery storage projects and ongoing renewable energy initiatives. Financially, Origin maintains a strong capital structure with a Net Debt/EBITDA ratio of 1.5x, positioning it well for future growth.

Looking ahead, Origin Energy remains committed to delivering sustainable shareholder returns while navigating market dynamics. The company aims to capitalize on the growth of its renewable energy portfolio and continue supporting the east coast gas market, aligning with its strategic climate ambitions.