SYDNEY: Australia’s Origin Energy sharply raised the full-year earnings outlook for its key energy markets division for a second time, helped mainly by a stronger-than-expected contribution from United Kingdom-based energy retailer Octopus Energy.
Origin now expects underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) for its energy markets division for the financial year 2023 to be between A$950mil (US$628mil or RM2.8bil) and A$1.2bil (RM3.5bil), much higher than the prior range between A$600mil (RM1.77bil) and A$730mil (RM2.2bil).
“In the United Kingdom, following a volatile first half, market conditions have stabilised over the winter period, and Octopus has seen a rapid return to more normal trading conditions,” the company said.
Australia’s No. 2 power producer, which is set to be taken over by a consortium led by Canada’s Brookfield, now expects to record a significant positive Ebitda contribution from Octopus in the year to June 2023.
Origin holds a 20% stake in Octopus Energy, which last year contributed a loss of A$36mil (RM106mil) to Origin’s Ebitda. — Reuters
