Investing in Origin Energy (ASX:ORG): A 128% Gain in Three Years

Investing in Origin Energy (ASX:ORG) three years ago would have delivered you a 128% gain, making it an attractive option for those looking to grow their wealth in the energy sector. Origin Energy's strong financial performance, strategic focus on renewable energy, and successful acquisitions have all contributed to its impressive share price growth.



Strong Financial Performance

Origin Energy has consistently reported strong financial results. In 2024, the company's revenue was 16.18 billion, a decrease of -2.08% compared to the previous year's 16.53 billion. However, earnings were 1.40 billion, an increase of 32.42% (Financial Performance). This demonstrates the company's ability to maintain profitability despite fluctuations in revenue.

Dividend Growth

Origin Energy has a history of dividend growth, with the dividend per share increasing from $0.10 in 2010 to $0.55 in 2024. The dividend yield is currently 4.93%, and the payout ratio is 58.63% (Dividends & Yields). This consistent dividend growth has provided shareholders with a steady income stream while the share price has appreciated.

Expansion into Renewable Energy

Origin Energy has been expanding its portfolio of renewable energy and storage projects, with the acquisition of the Yanco Delta Wind Farm being a strategic move to accelerate the company's transition to cleaner energy. The Yanco Delta Wind Farm is one of the largest and most advanced wind and energy storage projects in New South Wales, consisting of a 1.5 GW wind farm and a 800 MWh battery (Announcements).



Origin's CEO, Frank Calabria, highlighted the strategic importance of this acquisition, stating that it represents a major step forward in the company's journey to transition its portfolio to cleaner energy. This acquisition aligns with Origin's broader strategy to build out a portfolio of renewable and storage projects at varying stages of development, enabling the company to rapidly expand its renewable energy capacity and meet the growing demand for clean energy from its customers.

Successful Investments and Acquisitions

Origin Energy has made successful investments in similar businesses, such as Octopus Energy, and strategic acquisitions like the Yanco Delta Wind Farm. These investments and acquisitions have contributed to the company's overall growth and profitability (Industry News).

Regulatory Approvals and Takeovers

The company's progress through regulatory approvals, such as the ACCC and FIRB, for its takeover by a consortium led by Brookfield Asset Management, has also contributed to its share price increase (Vertium Asset Management CIO Jason Teh's Analysis). The takeover offer is currently progressing through the ACCC and FIRB, with clearance from the ACCC expected around late September.



In conclusion, investing in Origin Energy (ASX:ORG) three years ago would have delivered you a 128% gain, thanks to the company's strong financial performance, strategic focus on renewable energy, and successful acquisitions. As the energy sector continues to evolve, Origin Energy's commitment to clean energy and growth strategies make it an attractive investment option for those looking to grow their wealth in the long term.