Origin, a major supplier to the east coast domestic gas market, on Thursday reported a statutory profit of $1.017 billion for the six months to December 31, up from $995 million a year earlier.
Underlying profit rose by almost a quarter to $924 million on improved earnings from gas and lower tax expenses, the company said.
Origin remains "well-placed" to benefit from the energy transition with its leading customer position in Australia and access to international growth through Octopus Energy in the United Kingdom," chief executive Frank Calabria said.
Output from the aging Eraring coal-fired power station, set to keep running until 2027 under a deal struck with the NSW government, was "relatively stable", the company said.
One of the "big three" electricity retailers in Australia, competing with AGL Energy and Energy Australia, Origin said it was making progress on building more renewable energy and storage assets.
"Good cash generation from our businesses and a strong balance sheet enabled Origin to increase returns to shareholders and invest in the energy transition," Mr Calabria said.
Origin is targeting four to five gigawatts of renewables and energy storage by 2030, including a big battery being built at Eraring.Â
A large-scale battery will also be constructed at Mortlake Power Station in Victoria.
The company also has a portfolio of wind projects, including its priority development Yanco Delta in NSW.
"Origin has delivered a strong first half result, with increased earnings from Integrated Gas largely offsetting lower earnings from Energy Markets and Octopus Energy," he said.
But earnings for the Energy Markets division were lower as Origin absorbed lower wholesale prices and coal supply costs increased.
Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA), a measure of core company profitability, was lower at $1.926 billion, compared to $1.995 billion.
Australia Pacific LNG production is expected to be 670 to 690 petajoules for the financial year, with capital and operating costs of $2.7 billion to $2.9 billion.
Gains from LNG trading are expected to be towards the upper end of the $400 million to $450 million range, and $50 million to $150 million in FY26.
Origin declared an interim dividend of 30 per share, up from 27.5 cents per share a year earlier.
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