Origin Energy’s Profit Rises 28% After Financing Costs Decline

Feb. 25 (Bloomberg) -- Origin Energy Ltd., Australia’s second-largest energy retailer, said first-half underlying profit increased 28 percent on lower financing costs.

Profit excluding one-time items rose to A$355 million ($317 million) in the six months ended Dec. 31 from A$277 million a year earlier, Origin said today in a statement to the Australian stock exchange. That’s higher than the A$311 million median estimate of five analysts surveyed by Bloomberg News.

Origin reported first-half net income after tax of A$371 million compared with A$6.7 billion a year earlier. The first half of the prior year benefited from a gain on the sale of a stake in the Australia Pacific LNG project to ConocoPhillips.

The venture by Origin and Houston-based ConocoPhillips is one of five in the Australian state of Queensland planning to tap gas extracted from coal seams for conversion into liquefied natural gas and export to Asia. The venture plans to make a final investment decision late in 2010, Origin has said.

Origin’s LNG venture and BG Group Plc agreed to develop jointly owned coal-seam gas fields in Queensland, the company said in a separate statement today. Origin expects additional gas and oil discoveries from an expanded exploration program and seeks to tap increasing demand for renewable energy sources Managing Director Grant King said in today’s statement.

Origin reiterated its forecast that full-year underlying profit will be about 15 percent higher than a year earlier.