Aug. 16 (Bloomberg) -- Origin Energy Ltd., Australia's second-largest energy retailer, may report full-year profit rose 26 percent after raising power prices for householders.

Origin probably earned A$203.4 million ($144 million) in the year ended June 30, up from A$161.9 million a year earlier, according to the median forecast of five analysts surveyed by Bloomberg News. The Sydney-based company is expected to release earnings about midday tomorrow.

Origin in January increased its forecast for full-year earnings per share growth to about 20 percent. Managing Director Grant King said last month his NZ$1.14 billion ($747 million) purchase of a controlling stake in New Zealand's Contact Energy Ltd. will increase earnings from this year.

``I don't see any reason why they wouldn't hit target expectations'' for full-year earnings, said Tim Barker, who helps manage $30 billion at BT Financial Group in Sydney, including energy stocks. ``Contact has to be the focus, and that really comes down to whether they can achieve what they say they can achieve.''

Shares in Origin, which also produces oil and gas, have risen 27 percent this year on the Australian Stock Exchange because of the increased profit forecast, record oil prices and the Contact purchase. The increase compares with a 5.5 percent rise in the exchange's benchmark index. They fell 3 cents, or 0.5 percent, to A$6.03 at 10:08 a.m. Sydney time.

Contact increased its earnings forecast based on a ``strong'' first half and higher energy tariffs in Victoria state, the nation's second-most populous. The company usually targets annual per share earnings growth of between 10 and 15 percent on average.

Moomba Fire

Profit for the second half probably rose 7.6 percent to A$77.8 million, from A$72.3 million in the year-earlier half, based on analysts' full-year estimates and the first-half profit of A$125.6 million.

Earnings in the second half, which are usually less than first-half earnings because of lower gas demand in the warmer months, were reduced by a fire on New Year's Day at Santos Ltd.'s Moomba gas processing plant in central Australia, which temporarily halted production. The Moomba fire may cut earnings before interest, tax, depreciation and amortization by as much as A$10 million, Origin said in February.

The warmer than average early winter period may mean that the second-half contribution from the retail business is ``slightly'' lower than expected, BT's Barker said.

Origin said last month that full-year sales to other energy companies from its oil and gas unit fell 1.7 percent to A$281.4 million.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@Bloomberg.net.

Last Updated: August 15, 2004 21:00 EDT