Australia's second biggest gas and power retailer reported a net profit of $89.6 million for the six months to December 31. It also announced a dividend of 5c per share franked to 2c to be paid on 24 March 2003.

Origin managing director Grant King said the result was driven by contributions from acquisitions, tariff increases and improved margins in the energy retailing.

"Based on the performance over the last half year we expect earning for the full year to be higher than previously advised and are now likely to exceed last year's profit by around 20%," Mr King said.

As for the outlook for the full year, King said contributions from the Mt Stuart Power station will enhance generation earnings while exploration and production will benefit from increased oil production from Perth Basin fields, Hovea and Jingemia.

However, King warned higher electricity purchasing costs in the second half, the Victorian Government's rejection of tariff increases plus the seasonal variation of energy retailing will see lower half contributions from energy retailing.