Origin's Balance Sheet Can Support New Opportunities
Dow Jones
Aug 14
Origin Energy's flat annual dividend surprised its bull at UBS. That's partly because Origin's leverage is well below the bottom end of a 2-3x target range and FY27 capex guidance is lower than expected. "Given these outcomes and a conservative approach to dividends, we think it introduces the potential for Origin to pursue scale growth over FY27," analyst Tom Allen says. Potential deals include small energy and broadband retailers, which will help reduce customer churn and boost value, UBS says. Origin could also offer full scale energy and infrastructure solutions to data centers and hyperscalers. It could plow more investment into Octopus Energy and Kraken. Origin ended Thursday at A$11.86.
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