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.