PERTH (miningweekly.com) – ASX-listed Origin Energy has reported a 39% fall in revenues for its integrated gas businesses for the three months to September, driven by lower realised prices.
“Gas production was steady for the quarter, however, as expected, realised prices were lower as the lagged impact of oil prices on the Australian Pacific liquefied natural gas (LNG) contracts started to flow through to revenues,” said Origin Energy CEO Frank Calabria.
Production in the September quarter reached 64.2 PJ, down slightly from the 64.5 PJ delivered in the June quarter. Sales volumes reached 57.4 PJ, down from 59.8 PJ, with revenues falling from A$610.2-million to A$373.9-million.
Calabria noted that the majority of the sales conducted over the September quarter fell within long-term contracts, which offered some protection from soft LNG spot prices during the quarter.
“With demand for LNG continuing to be subdued and strong performance from our gasfield, Origin has reduced drilling activity for the year across upstream operations at Australia Pacific LNG, with Origin’s share of capital expenditure A$33-million lower for the quarter.
“We are progressing well with our exploration in the Beetaloo, recently completing fracture stimulation which paves the way for extended production testing,” Calabria added.