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Feb 15 (Reuters) - Origin Energy Ltd ORG.AX , Australia's top power and gas retailer, said on Thursday its first-half underlying profit more than tripled on the back of rising energy prices, and it raised its full-year earnings forecast for its energy markets business.
Origin said it was on track to cut net debt to less than A$7 billion by end of fiscal 2018.
Underlying profit after tax for the six months ended Dec. 31 rose to A$582 million ($461.12 million) from A$184 million a year ago, slightly missing two analysts' estimates of around A$593 million.
Origin said it raised its full-year underlying earnings forecast for its energy markets business to between A$1.78 billion and A$1.85 billion from an earlier forecast of A$1.7 billion to A$1.8 billion.
At the bottom line it reported a narrower statutory net loss of A$207 million compared with a loss of A$1.56 billion a year ago.
"A strong uplift in cash flow has assisted in the deleveraging of our balance sheet. The successful completion of the sale of Lattice Energy early in the second half will also contribute around $1 billion towards debt reduction," Chief Executive Frank Calabria said.
Origin has been racing to pay down debt which it took on to build the Australia Pacific LNG (APLNG) project, and is now reaping the benefits of cash flow from the project at a time when oil and gas prices are rising.
It is also benefiting from soaring gas prices in Australia as APLNG and two neighbouring LNG plants have ramped up gas exports at a time when demand for gas in power generation has grown as a back-up for wind and solar power.
In a separate statement, the company said it intends to redeem 500 million euros worth of capital securities due 2071 issued by subsidiary Origin Energy Finance Limited.
($1 = 1.2621 Australian dollars)