Australia's Origin Energy beats annual profit view, sees stronger energy markets earnings (updated)

Origin Energy

13/08/2026 24:02

Company posts FY26 underlying earnings of A$1.16 billion
FY27 Energy Markets earnings outlook ahead of consensus
Shares up 6.5% in early trading, best day since mid-February
Updates with details on results, analyst comments, and shares
Aug 13 (Reuters) - Australia's Origin Energy ORG.AX reported full-year underlying profit on Thursday that surpassed analysts' estimates and also forecast energy markets earnings ahead of street expectations, helped by a ramp-up in its battery portfolio.
    Shares of Origin, Australia's largest listed power producer by market capitalisation, jumped 6.5% in early trade to their highest level in more than three months. 
The stock clocked its best intra-session gain since mid-February, and was also among the top gainers in the ASX200 benchmark index, which traded slightly lower as of 0021 GMT.
Origin reported underlying profit of A$1.16 billion ($818.96 million) for the year ended June 30, below A$1.49 billion a year ago but ahead of the Visible Alpha consensus estimate of A$1.14 billion.
It forecast 2027 operating earnings between A$1.55 billion and A$1.85 billion for the energy markets arm, the midpoint of which is in line with its 2026 earnings of A$1.70 billion and above the Visible Alpha consensus estimate of A$1.61 billion.
    "Investor focus has been on Energy Markets, with FY27 guidance 5.5% ahead of consensus at the new midpoint... confirming earnings from new batteries can offset the impact of lower near-term electricity prices," UBS analysts wrote.
    Origin expanded its battery portfolio during the year, bringing 1.3 gigawatts (GW) of its 1.8 GW battery development programme into operation, including the commissioning of the Mortlake battery in Victoria.
    For the year ended June 30, energy markets earnings grew 21% to A$1.70 billion, driven by resilient electricity retail sales volumes and higher prices charged to customers.
Lower LNG production and weak realised prices, however, dampened earnings at its integrated gas division, which largely comprises its stake in the Australia Pacific LNG (APLNG) project in Queensland. Earnings fell 26% to A$1.62 billion.
The power producer forecast total capital expenditure of A$450 million to A$650 million in 2027, with lower growth capital expenses expected as its battery development program winds down.
Origin declared a final dividend of 30 Australian cents per share, unchanged from last year.

($1 = 1.4164 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru; Editing by Shreya Biswas and Sherry Jacob-Phillips)
 ((Shruti.Agarwal@thomsonreuters.com;))