By David Winning
SYDNEY--Shares of Origin Energy move higher after management raised guidance for annual earnings of its Energy Markets division, citing an improved performance in its electricity business.
Origin's stock rises 6.4% to A$11.78 early in trading on Thursday, putting it close to its highest level in 2026 so far.
Impetus came from Origin saying it now expects underlying earnings before interest, tax, depreciation and amortization from its Energy Markets business of between 1.55 billion Australian dollars (US$1.10 billion) and A$1.75 billion in the 12 months through June. That compared to prior guidance of A$1.40 billion-A$1.70 billion.
Jefferies, which has a buy call on Origin's stock, said the A$1.65 billion midpoint of the new range is above its own forecast of A$1.613 billion.
"We see the increase in guidance for Energy Markets as a key positive from the result," analyst Amit Kanwatia said.
Jarden analyst Nik Burns said Origin's mid-year result was solid, with electricity gross profits and Ebitda from its Australia Pacific LNG project offsetting misses in gas, cost-to-serve and renewable-energy startup Octopus Energy.
"Market should like the Energy Markets Ebitda guidance upgrade, though we expect questions around how this carries through to FY 2027, and whether higher battery earnings contribution will offset the impact of lower wholesale electricity prices," Burns said.
For UBS, the only blemish in Origin's result was a half-year underlying Ebitda loss of A$89 million on its share of Octopus. Origin owns a 23% stake in Octopus, which is worth nearly US$2 billion following that business's equity raise during the final weeks of 2025.
Still, UBS analyst Tom Allen noted Octopus's earnings are seasonal and Origin has maintained annual guidance for an underlying earnings contribution of up to A$150 million from its share of Octopus.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
February 11, 2026 18:54 ET (23:54 GMT)
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