Origin Energy in focus after announcing the extension Eraring Power Station operations
Origin Energy shares surged 2.62% on Tuesday after the company extended Eraring Power Station operations and at current valuation levels, the stock appears well positioned to deliver both passive income and capital growth.
Origin Energy Limited (ASX: ORG)
on 20 January 2026 announced that it will extend the operation of all four units at the Eraring Power Station from August 2027 through April 2029 which is aimed at supporting system reliability in New South Wales during the energy transition.
The decision followed advice from AEMO which highlighted system security risks and allows additional time for renewable generation storage and transmission projects to be delivered while Origin continues progressing its large-scale Eraring battery rollout.
Origin confirmed that this extension will not affect its 2030 emissions reduction targets or its net zero by 2050 ambition and stated that Eraring will fully retire in April 2029 with no major maintenance overhauls planned beyond this period.
The company on 30 December 2025 announced that Kraken Technologies will raise US$1 billion in its first standalone equity raising which implies a valuation of US$8.65 billion and supports its planned separation from Octopus Energy targeted by mid- 2026.
Origin confirmed it will invest US$140 million as part of the transaction while retaining a total economic interest of 22.7% in Kraken through a combination of direct and indirect holdings.
As part of the agreement Origin also waived exclusivity to the Kraken platform in Australia in exchange for an additional 1.5% equity stake which offsets dilution arising from the capital raise.
The September 2025 quarter delivered steady performance with Australia Pacific LNG producing 169.9 PJ while Energy Markets maintained stable electricity volumes and continued customer growth through Octopus Energy.
Revenue for the quarter was 5% lower than the prior quarter at $2.124 billion which was mainly driven by lower LNG volumes and prices while this was partially offset by higher domestic volumes.
Origin has a market capitalisation of $19.54 billion and has distributed fully franked dividends on a semi-annual basis for the past three years while current annual dividend yield is 5.29%.
At a P/E ratio of 13.2, the stock appears undervalued with the outlook supported by battery commissioning, renewable integration and disciplined capital management.
(Source: Company Announcements)
Get Your Free Report on Top 5 ASX Stocks on WhatsApp
Instant Access. No Credit Card Required.
Receive on WhatsApp
Checkout Our Recommendation for free - 7 days free trial
Start Free TrialASX Stock Research & Recommendations — 7‑day free trial
Independent, analyst‑driven insights.
- Stock of the week report
- Daily Analysis Report
- No credit card required
Get Your FREE Report
Discover the Top ASX Stocks to Invest In 2026!
Expert Analysis of Top-Performing ASX Stocks
Market Insights and In-Depth Research
Buy, Sell, And Hold Recommendations
Almost There!
Enter your details to download the report
Success!
Preparing your download...
Latest Article
Disclaimer
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
