Origin Energy has raised its full-year earnings outlook for its energy retail division even as it reported a 45 per cent decrease in net profit for the first half of the 2025 financial year (HY25).
Profit for HY25 fell to AU$557 million from AU$1.02 billion one year prior, while underlying profit stood at AU$593 million compared to AU$924 million.
The company said higher-than-expected earnings in energy markets were offset by expected lower earnings in integrated gas and a lower contribution from its U.K. unit, Octopus Energy.
Improved performance in Origin’s electricity business prompted the increase in its energy market guidance to be AU$1.55 billion to AU$1.75 billion for fiscal 2026, compared to its previous guidance of AU$1.4 billion to AU$1.70 billion range.
Origin expects its gross electricity profit to increase, driven by higher wholesale component in customer tariffs and the contribution of large-scale batteries in the second half.
Frank Calabria, Origin CEO, said the company’s first-half results were solid and allowed for an upgrade to its energy retail guidance.
“Retail performance continued to strengthen, grid-scale batteries added further portfolio flexibility, gas production was steady, and cost management remained disciplined as commodity prices softened,” the CEO said.
“We have delivered more than 10 consecutive halves of customer growth, further building on Origin’s leading retail position, reflecting the strength of our brand and customer solutions, including a refreshed suite of battery products and continued enhancements in customer experience.”
Electricity gross profit in HY25 increased to AU$840 million, reflecting the lagged benefit of higher wholesale costs flowing into retail customer tariffs.
Origin reported strong customer growth of 96,000 accounts, with an average churn of 14.7 per cent, better than the average market of 22.4 per cent.
