Origin Energy Profit Rises 13% on Retail, Oil Gains

By Angela Macdonald-Smith

Aug. 28 (Bloomberg) -- Origin Energy Ltd., the Australian utility fighting off a A$13.7 billion ($12 billion) takeover bid from BG Group Plc, said full-year profit rose 13 percent, buoyed by the purchase of a retailing unit and higher oil prices.

Net income advanced to A$516.7 million in the year ended June 30, from A$456.9 million a year earlier, Sydney-based Origin said today in a statement to the Australian stock exchange. Profit before one-time items rose 20 percent to A$443 million, compared with the market consensus of A$440.7 million cited by Credit Suisse Group.

Origin benefited from a full-year contribution from the Sun Retail business in Queensland it bought for A$1.2 billion in February 2007. Record oil and gas sales and higher prices boosted returns from petroleum exploration and production. Managing Director Grant King today retained a target of 10-15 percent annual growth in per-share earnings.

``A number of projects are expected to make initial or significantly increased contributions to Origin's financial performance in the current financial year,'' King said in the statement. ``The result highlights the strength of our existing businesses.''

Origin Energy dropped 1 cent, or 0.1 percent, to A$16.00 in Sydney trading at 10:06 a.m. local time.

Sales gained 29 percent to A$8.3 billion. Origin declared a final dividend of 13 cents a share, up from 11 cents a year earlier.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net