News: ORG UPDATE 1-Australia's Origin Energy hikes earnings outlook on strong UK gains

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May 1 (Reuters) - Australia's Origin Energy (ORG) on Monday sharply raised the full-year earnings outlook for its energy markets division, boosted mainly by a stronger-than-expected contribution from U.K.-based clean energy and technology business Octopus Energy.

Origin now expects underlying earnings before interest, taxes, depreciation and amortization (EBITDA) for its energy markets division for fiscal year 2023 to be between A$950 million ($628 million) and A$1,200 million, much higher than the prior range between A$600 million and A$730 million.

"In the United Kingdom, following a volatile first half, market conditions have stabilised over the winter period and Octopus has seen a rapid return to more normal trading conditions," the company said in a statement.

Australia's No. 2 power producer, which is set to be taken over by a consortium led by Canada's Brookfield BAM.TO , now expects to record a significant positive EBITDA contribution from Octopus in the year to June 2023.

Origin holds a 20% stake in Octopus Energy. Origin added that it has also been able to secure additional coal supply at lower cost for its Eraring power plant, helping the earnings upgrade.

($1 = 1.5124 Australian dollars)