How did the Origin(ASX:ORG) share price perform in 2021?

The Origin Energy Ltd (ASX: ORG) share price finished 2021 in the green in a major recovery from its lows of 2020.

Shares in the energy company jumped from $4.76 to $5.24 during the year, up 10%. By comparison, the S&P/ASX 200 Index (ASX: XJO) gained around 13%.

Let’s take a look at how Origin Energy share price performed during the year.

Energy in focus

The Origin share price suffered in the early months of 2021 before staging a major comeback from the beginning of June. This followed energy shares, in general, having a poor year in 2020, with Origin falling nearly 45%.

Shares in Origin fell more than 14% in the first five months of the year. One major event that spurred the decline was the negative reaction to an update on the company’s earnings guidance in April.

The Origin share price sunk 13.83% in one week from its close on 15 April to 22 April 2021. Investors began selling off Origin shares after the company revealed the cost for gas supply would increase in both FY 2021 and FY 2022.

In June, the company’s share price saw a major turnaround, exploding 22.42% from $3.97 at the close of trade on 31 May to $4.86 on 10 June. This was despite no price sensitive news from the company.

However, Macquarie Group Ltd (ASX: MQG) analysts released a broker note predicting the company’s negative earnings cycle was over. They lifted Origin’s price target to $4.88. In hindsight, the analysts were on the money about the pending recovery.

Shares in Origin also skyrocketed in late September. Between market close on 20 September and 25 October, the Origin share price charged from $4.30 to $5.38 — a 25% boost.

Driving the gains were major announcements including Origin executing a $2 billion deal with global energy investor EIG to sell a 10 per cent interest in Australia Pacific LNG.

Also contributing was positive investor reaction to the company’s annual general meeting, when the company released positive guidance for financial year 2022.

December continued to provide relief for Origin investors, with the company’s share price soaring more than 9% between market close on 30 November and 31 December.

During the final month of the year, the company revealed it would be acquiring community energy services business WINconnect. Also in December, the company announced ConocoPhillips had put into effect its pre-emption rights in Origin’s deal to sell its 10% interest in Australia Pacific LNG.

Origin Energy share price recap

The Origin share price gained roughly 3 percentage points less than the broader ASX 200 Index in 2021.

The company has a market capitalisation of nearly $9.6 billion based on its current share price.

In the past month, the company’s shares have gained nearly 12%, while they are up nearly 5% this week. At market close on Wednesday, shares in the company are swapping hands at $5.44, up 1.49%.

The post How did the Origin(ASX:ORG) share price perform in 2021? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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