"The proceeds of the rights issue will be used to repay the convertible undated preference shares issued to fund the acquisition in 2004 of a 51.4%interest in Contact Energy and, more generally, strengthen Origin ’s balance sheet," Origin chairman Kevin McCann said.

Origin lifted its net half-yearly profit 21.1% to A$152.06 million from $125.62 million a year earlier, thanks in part to a three-month contribution from subsidiary Contact Energy of A$6.6 million.

Revenues in the half-year to December 31 rose 24.2% to A$2.29 billion from $1.85 billion, while basic earnings per share rose 17.8% to 22.6c.

Origin this morning said the results reflected increased oil production, higher oil prices and lower exploration writedowns, partially offset by lower sales volumes of natural gas and associated liquids.

Origin also had higher contribution from retail activities with increased margins in electricity more than offsetting decreases from natural gas. However, generation earnings were lower, reflecting the non-recurrence of tax consolidation benefits received in the prior corresponding period and lower contributions from Osborne and Mt Stuart;

Origin also benefited from a full six months of contribution from the Southeast Australian (SEA) gas pipeline.

The consolidation of Origin's 51.4% interest in New Zealand-based Contact Energy Ltd for the three months from October increased Origin’s net profit by A$6.6 million, after deducting the cost of debt funding and recognition of outside equity interests.

A one-off, after-tax benefit of A$9 million arose from the sale of the Carpentaria gas pipeline connecting Ballera to Mount Isa, which was partially offset by a A$2 million provision raised with respect to redundancies associated with the organisational restructure.

Origin forecast second half-year results to be higher than the corresponding 2004 period due to the inclusion of a full six months contribution from Contact, the return to full gas and liquids processing capabilities at the Moomba gas plant, and contributions from BassGas project now being commissioned.