Why is the AGL (ASX:AGL) share price underperforming Origin lately?

Did a barrage of news from Origin bolstered its share price's performance over the last month?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The AGL Energy Limited (ASX: AGL) share price has battled through a shocking 30 days over which it has fallen a significant 10.2%. Shares in the company are currently trading for $5.61 a piece.

The energy provider's dip came despite it maintaining its silence. In fact, the company hasn't released any price-sensitive news to the market since August.

On top of that, market watchers are likely keeping an eye on the AGL share price ahead of its planned demerger, set to go ahead later this financial year.

While AGL's stock has been suffering, that of its competitor, Origin Energy Ltd (ASX: ORG) is staying relatively flat.

Over the last 30 days, the Origin share price has gained 0.7% to reach $5.11.

Let's take a look at what's keeping the Origin share price broadly afloat while that of AGL is sinking.

A worker with a clipboard stands in front of a nuclear energy facility.

Image source: Getty Images

Origin share price outperforms that of AGL

While the embattled AGL has been quiet on the ASX over the last month, the market has heard an avalanche of news from Origin.

The announcements began when Origin's annual general meeting was held on 20 October. There, the company's CEO Frank Calabria stated that its outlook for financial year 2022 had improved.

According to Calabria, the company expects its energy markets business to post a stronger performance than was previously predicted. It came after global demand for oil and liquid natural gas (LNG) increased unexpectedly.

The following week, Origin announced it had agreed to sell a 10% stake in Australia Pacific LNG for $2.12 billion. The Origin share price gained 3.8% on the back of the news. Origin will retain a 27.5% holding in the joint venture following the sale.

Though, the party didn't last long for AGL's competitor's share price. Origin's stock's value slid 1.3% on 29 October after the company released an update on its performance through the first quarter of financial year 2022.

Foolish takeaway

While a flood of news seems to have kept the Origin share price afloat over the last 30 days, AGL's silence hasn't allowed its stock the same buoyancy.

At the time of writing, the AGL share price is 53% lower than it was at the start of 2021. It has also fallen 56% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

fire man running on lava
Share Market News

ASX 200 energy shares lead the market for a third week

Energy shares have risen 16.21% while the ASX 200 has lost 8.37% since the war in Iran began.

Read more »

Woman refuelling the gas tank at fuel pump.
Energy Shares

Up 38% in a month, ASX 200 energy share lifting off again Friday on big oil refining news

Investors are bidding up the ASX 200 energy stock again today amid renewed government support.

Read more »

Man ecstatic after reading good news.
Energy Shares

This ASX 200 stock is charging higher on big news

Let's see what has been announced this morning.

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

This ASX energy stock could rise 50%, says Bell Potter

Bell Potter has named this energy producer as a buy. Let's find out why.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

How many Santos shares do I need to buy for $10,000 a year in passive income?

Santos shares have delivered two yearly dividend payouts since 2019.

Read more »

A business person directs a pointed finger upwards on a rising arrow on a bar graph.
Energy Shares

5 ASX 200 energy shares smash multi-year highs after oil price spike

The ASX 200 Energy Index reached a two-year high of 11,071.80 points on Thursday.

Read more »

Woman refuelling the gas tank at fuel pump.
Energy Shares

Brent crude hits US$112. Here's why Australia is more exposed than most

Oil surges past US$112 as fuel risks rise in Australia.

Read more »

A man faces a fork in the path in the bush before being plunged into the night's darkness holding only a gas lantern.
Energy Shares

Natural gas jumps 6% overnight. Which ASX gas giants stand to benefit?

Natural gas climbs 6% as global supply concerns grow.

Read more »