Managing director Grant King described the performance as "strong" but said growth in earnings per share was likely to sink back to target levels of 10 to 15% in the current year without major acquisitions.

The acquisitions in the last half have given Origin a solid base in electricity retailing (following the $132 million CitiPower purchase) which now makes up close to half of earnings before tax, interest and depreciation.

In 2002-03, with the capital expenditure for the company was up by 30% to $524 million but cash flow was strong enough to fund all but $99 million of that and net debt grew only 16% to $732 million.

Like many other companies the world's surging oil prices impacted the bottom line with the returns on crude oil up 6% to $853 million.

Managing director Grant King predicted profits would increase again in 2004 but growth would not continue at the current rate after two years of acquisitions.

King said the company was on track to meet its long-term growth target for earnings per share of 10 to 15% a year.