Why Origin Energy Share Price is Up Today

Origin Energy Ltd’s [ASX:ORG] share price is up by 1.54% today.

What caused Origin share price to increase?

Origin has experienced a steady gain over the last two months, despite a high level of volatility over the last five years. This is great news for investors.

Their revenue is at its highest in three years, which is a healthy sign for the company.

Australian Stock Report’s head of research, Chris Conway, said, ‘Energy players are really leading the charge today. That sector is clearly the strongest we have.

It’s a good time to have some oil and gas stocks in your portfolio.

It seems as though our energy stocks are set to continue jumping up — possibly due to OPEC’s (Organisation of the Petroleum Exporting Countries) decision to ease production cuts only modestly.

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What does Origin do?

Origin Energy is one of Australia’s leading producers of energy. It is an integrated energy company that deals in energy retailing, power generation and natural gas production locally and internationally.

The energy giant has been in the public’s favour recently. Origin announced earlier this month that they would reduce electricity costs for Queensland residents by 1.8%.

What does this news mean for investors?

As the world’s demands for energy to keep rising, some critics believe that this kind of good news can’t last forever. While they may be experiencing a period of good fortune, within the next five years energy companies will have to start mining from new sites, as resources in old sites become scarce. Exploration for new resources is expensive, and chancy. What if there are no new sites?

The company is also still experiencing a high level of debt — the general rule of thumb sits at about 40% of your equity, and Origin is strapped with a whopping 77.22%. This is a serious factor to consider.

All this considered, Origin Energy is an interesting giant to keep your eye on…


Ryan Clarkson-Ledward
For Markets & Money

PS: Energy stocks aren’t the only resource companies making gains this year. In our latest free research report, we look at 10 mining stocks that could lead the charge as the resources industry continues to rebound this year. You can download the free ‘Top 10 Mining Stocks For 2018’ report here.

Markets & Money is unlike any other finance newsletter. Our mission is to look at the world of investments and finance in a sceptical and contrarian way. Our editorial team looks beyond the headlines and obvious explanations to bring you what we think is really moving the market. More importantly, we’re trying to show you where the next big opportunities and where the big risks are that you might not be aware of. In Markets & Money you’ll read about the state of the Australian housing market, the future of the commodity boom, China’s rise to an economic superpower, the fate of the US dollar, and of course a whole lot more.

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