Origin's revenue rises despite LNG production fall
PERTH (miningweekly.com) – Energy major Origin Energy has reported a 4% decline in gas production during the March quarter, compared with the previous quarter, owing to planned maintenance activities in operated fields and two less days in the quarter.
Liquefied natural gas (LNG) production for the March quarter reached 65.4 PJ, down from the 68.3 PJ in the previous quarter, with sales volumes declining from 64.5 PJ to 60.6 PJ in the same period.
However, revenue was up by 7% across this period, from A$398-million to A$427.5-million as the average commodity price increased by 14%.
In the year to date, production was down 1% on the previous corresponding period, to 198 PJ, with revenues down 41% from over $2-billion to $1.1-billion, as average commodity prices declined by 38%.
“The performance of Integrated Gas continues to stand out, with higher realised prices driving an increase in revenue this quarter and Australia Pacific LNG shipping its 600th cargo to customers. Due to the lag in the LNG contracts, we expect recent higher oil prices to flow through to contract revenues in the 2022 financial year,” said Origin CEO Frank Calabria.
“The combination of strong production and operating and cost discipline has helped to reduce the FY2021 distribution breakeven, with full-year cash distributions to Origin expected to be greater than A$650-million.
“Exploration continues in the Beetaloo basin, including planning for an extended production test at the Kyalla-117 well in late 2021 and drilling the Velkerri-76 vertical well in early 2022, both targeting liquids-rich gas.”
Origin previously warned shareholders of a A$30-million to A$40-million increase in the company’s cost of supply for the 2021 financial year, and a further A$60-million to A$80-million increase in 2022, following a price review for gas purchased from fellow-listed Beach Energy.
A further 8 PJs of gas supply is expected to undergo a price review in 2022 related to a contract with Beach Energy from its Cooper basin operations.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation