• First-half underlying earnings beat estimates
• Hikes FY26 Energy Markets underlying EBITDA outlook
• Shares jump as much as 8%, mark best day in three years
• Interim dividend of 30 Australian cents

Feb 12 (Reuters) - Australia's Origin Energy (ORG.AX) , opens new tab raised its full-year earnings outlook for its energy retail division on Thursday, citing stronger electricity margins, which helped the power producer beat market expectations for first-half earnings.

Shares of one of Australia's top power producers rose as much as 8.1% to A$11.970, posting their biggest intraday percentage gain in three years, while the broader benchmark ASX200 (.AXJO) , opens new tab was up marginally as of 2341 GMT.

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Origin forecast full-year operating earnings at its Energy Markets division between A$1.55 and A$1.75 billion, compared with its previous view of A$1.40 to A$1.70 billion. The midpoint of the new outlook is above the Visible Alpha consensus of A$1.62 billion.

The division, which comprises Australia's largest energy retail business by customer accounts, reported operating earnings of A$860 million ($613 million) for the six months to December 31, up 17% from a year earlier.

Energy Markets' earnings strengthened on higher electricity gross profit, robust growth in customer accounts and lower operational costs.

The unit's gains helped Origin report first-half underlying profit of A$593 million, above the Visible Alpha estimate of A$577.9 million, but down from A$924 million reported a year earlier. It also declared an interim dividend of 30 Australian cents per share, unchanged from last year.

"A solid HY26 result particularly in Energy Markets (EM)," UBS analysts wrote. "Stock to trade favourably on the upgrade in EM (outlook)."

However, operating earnings at the Integrated Gas division, which includes Origin's stake in the Australia Pacific LNG (APLNG) project and LNG trading operations, fell over 31% to A$860 million on weaker realised prices and lower production.

Origin also lifted the bottom end of its capital expenditure outlook to A$900 million, from A$800 million previously, keeping the upper limit at A$1.10 billion.

That upbeat forecast reflects the extension of all four units of its coal-fired Eraring Power Station April 2029 to support energy supply in New South Wales state, following warnings of blackouts by the energy market regulator if the plant had retired as planned.

($1 = 1.4039 Australian dollars)

https://www.reuters.com/business/energy/australias-origin-energy-tops-profit-estimates-strong-electricity-unit-2026-02-11/