Origin Energy Limited (Origin) has announced it intends to undertake an initial on-market share buy-back of $250 million.

The share buy-back is expected to commence in April 2022.

Origin CEO Frank Calabria said, “Origin is in a strong financial position, with a robust outlook for the business and a capital structure comfortably within our target range.

“This means we are now in a position to increase shareholder distributions with a share buy-back of $250 million.

“Going forward, we will continue to balance expected increased cash flow available for shareholder distributions with growth investments,” Mr Calabria said.

Further capital management initiatives may be considered over time, subject to operating conditions and capital allocation alternatives.