PERTH (miningweekly.com) – ASX-listed Origin Energy on Friday warned that production from the Australian Pacific liquefied natural gas (APLNG) project will be lower than anticipated for the 2023 financial year.
In October last year, the company warned that production had been impacted by the cumulative effects of wet weather earlier in the financial year, with the company saying at the time that production would be towards the lower end of the 680 PJ to 710 PJ target.
Origin has now put production guidance for the APLNG project at between 660 PJ and 680 PJ for the 2023 financial year.
The outlook for the LNG trading business has improved following additional hedging at favourable market prices, resulting in a further A$140-million to A$180-million of LNG trading earnings before interest, taxes, depreciation and amortisation (Ebitda). Previously, LNG trading Ebitda for 2023 and 2024 was expected to be slightly positive, and it is now expected to be A$40-million to A$80-million. The 2025 financial year LNG trading Ebitda was previously expected to be A$350-million to A$450-million, and is now expected to be A$450-million to A$650-million across 2025 and 2026.
Origin said that this outlook remains subject to market prices on unhedged volumes, operational performance and delivery risk of physical cargoes, and shipping and regasification costs.