ASX 200 Growth Stocks Maximising Long Term Value

Team Veye | 13-Nov-2024

Scanning ASX listed companies, a few stocks outshine others, in the manner of approach towards their investors. The two ASX 200 dividend paying companies are 

Origin Energy Limited (ASX: ORG)

Origin Energy Limited has posted its Quarterly Report for the period ending 30 September 2024, showcasing positive operational performance and financial outcomes across its core segments. In the Integrated Gas business, Australia Pacific LNG (APLNG) revenue grew 1% from the previous quarter to $2,638 million, driven by higher LNG sales volumes despite a slight decrease in production. The average realised LNG price for the September quarter was US$11.95/mmbtu, while domestic gas prices averaged $9.59/GJ. Steady operational performance at APLNG supported robust production levels, enabling consistent supply to the domestic market and reinforcing Origin’s commitment to local manufacturers.

The Energy Markets division reported a 3% increase in electricity sales volumes compared to the September 2023 quarter, driven by growth in retail customers and rising demand. Gas volumes remained stable, with increased retail sales offset by reduced business sales. Octopus Energy continued its rapid growth trajectory, adding over 600,000 customer accounts across its UK and international retail businesses, bringing total customer accounts on the Kraken platform to 62 million. Octopus’ continued expansion highlights its role as a disruptive force in global energy markets. Origin is among high growth stocks as it continues to ramp up investments in renewables and storage, with progress on large-scale battery projects at Eraring and Mortlake and advancement on the Yanco Delta Wind Farm development. As part of its broader strategy, Origin expects its Energy Markets Underlying EBITDA to reach $1,100–$1,400 million, with lower retail electricity margins reflecting regulated tariffs amid declining wholesale costs. Octopus Energy’s EBITDA contribution is projected between $100–$200 million. APLNG’s production forecast remains steady at 685–710 PJ (APLNG 100%), with LNG Trading EBITDA expected between $400–$450 million.

Origin’s ongoing investment in its virtual power plant (VPP), now boasting over 343,000 connected devices, highlights its innovative approach to grid optimization, providing mutual benefits to Origin and its customers. With a strong foothold in renewables and customer-centric technology, Origin continues to pursue growth opportunities that align with the energy transition and aims to deliver substantial returns to shareholders.

Viva Energy Group Limited (ASX: VEA)

Viva Energy Group Limited (ASX: VEA) Group saw a solid performance in the third quarter of 2024, with total sales volumes reaching 4.2 billion litres, up 3.0% from the same period in 2023. The Commercial & Industrial (C&I) segment performed particularly well, growing 3.7%, driven by demand from Defence, Aviation, and Liberty Rural Group. The Convenience & Mobility (C&M) business also showed growth, with fuel sales up 1.4%, though same-store sales in convenience and quick-service restaurants (QSR) were stable, excluding tobacco, which saw a decline.

Despite a tough refining environment, Viva Energy’s Geelong Refining Margin (GRM) stood at US$6.4/BBL, supported by strong operations and crude intake of 10.1 million barrels. The company also benefited from approximately A$24 million in federal government support through the Fuel Security Services Payment (FSSP), which helped to keep margins above break-even levels. Key infrastructure developments included the commissioning of the Geelong Strategic Storage Facility, adding 90 million litres of storage capacity, and the launch of a bitumen export line, signalling growth in operational capabilities.

Viva Energy expects softer retail conditions, particularly due to declines in tobacco sales, leading to C&M EBITDA (RC) guidance for FY2024 of between $230 million and $260 million. However, the company anticipates significant improvements from FY2025, with cost reductions and earnings growth driven by the transition of fuel supply and the integration of the Express and OTR formats. Refining margins may improve through the rest of FY2024 as global capacity balances out, and C&I is expected to maintain strong performance for the remainder of the year. 

Viva Energy is one of the high dividend stocks as it announced a final fully franked dividend of 6.7 cents per share (cps) for 1H2024, bringing the total payout for the first half of the year to 6.7 cps, which reflects a 70% payout ratio of C&M and C&I NPAT (RC). This dividend reflects the company's strong cash conversion and stable earnings despite ongoing transitions.

Source: Company’s Report

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