Origin Energy shares staged a modest rise yesterday on the back of news that the company had achieved record production and revenue in the June quarter thanks to higher production from its joint-owned APLNG project and higher oil and gas prices.
Origin shares rose 0.1% to end the day on $9.77 after the release of the latest quarterly and full year production and sales report which showed a 42% surge in revenue from the Queensland-based LNG project.
Revenue rose to $570.2 million in the quarter ended June 30, up from $464.4 million a year earlier.
Production for the quarter rose 4% to a record of 64 petajoules (PJ) equivalent from a year earlier.
The 4% gain came mostly from increased production from APLNG’s gasfields in Queensland’s Bowen and Surat Basins.
Origin CEO Frank Calabria said in the June quarter production and sales report that 125 LNG cargoes had been shipped from APLNG’s plant – located in Gladstone, Queensland – during the year to June.
“Across FY18, we saw strong uplifts in production, sales and revenue, reflecting a full year’s contribution from Australia Pacific LNG’s Train Two and assisted by strengthening commodity prices," Mr Calabria said.
Origin said that over 2017-18, Origin’s share of APLNG production was 254 PJ, an increase of 11% and consistent with guidance of 245 – 265 PJ. Origin’s share of revenue over the year to June 30 was $2,054 million, an increase of 42%.
Australia Pacific LNG also delivered net cash flows to Origin of $363 million in FY2018.
Origin said the 42% in revenues (more than $600 million) came from increased production and higher average realised prices of LNG and domestic gas.
"The higher average LNG price was primarily driven by an increase in the APLNG effective oil price to ~US$56/bbl (from ~US$47/bbl in FY2017),” directors said.