Origin Energy share price rises after strong half-year profit announcement

The Origin Energy Ltd (ASX: ORG) share price is leaping higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy provider closed yesterday trading for $10.26. In morning trade on Thursday, shares are changing hands for $10.47 apiece, up 2.1%.

The Origin Energy share price is in the green after the ASX 200 utility revealed rising half-year profits.

The company's reported statutory profit for the half year came in at $1.017 billion, up 2.2% year on year.

Underlying profits soared 23.7% to $924 million. Management credited the profit boost to improved earnings from its Integrated Gas segment along with lower tax expenses, which more than offset lower earnings from its Energy Markets and Octopus Energy arms.

Earnings went the other direction, though, possibly hindering an even better performance from the Origin Energy share price today. The company reported underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.926 billion, down 3.5% from 1H FY 2024.

On the passive income front, the board declared a fully franked interim dividend of 30 cents per share, up 9.1% from last year's interim payout.

This sees Origin Energy stock trading at a fully franked dividend yield (partly trailing, partly pending) of 5.5%.

Commenting on the results boosting the Origin Energy share price today, 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.”

Calabria added that “Origin remains Australia's number one energy retailer and added another 57,000 customer accounts in the half.”

Addressing the ongoing energy transition, Calabria said:

“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.

Looking to what could impact Origin Energy in the months ahead, the ASX 200 energy provider's guidance for its Energy Markets full-year FY 2025 underlying EBITDA remained unchanged at $1.10 billion to $1.40 billion.

Looking ahead, Calabria said:

“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.”

Origin said it was on track to deliver its cost reduction target of $100 million to $150 million in FY 2026, compared to FY 2024.

With today's intraday gains factored in, the Origin Energy share price is up 22.6% in a year, not including dividends.