Origin’s upstream revenue increases 40% in first half of FY2018
Origin Energy Limited (Origin) has released its Quarterly Production Report for the quarter ended 31 December 2017.
Origin’s production for the first half of the 2018 financial year was 172.6 PJe, or 12 per cent higher than the prior comparable period, driven by a 15 per cent increase in production from Australia Pacific LNG with a full six months’ contribution from Train 2.
Sales revenue for the half year to 31 December 2017 increased by $391 million to $1,365 million, an improvement of 40 per cent, compared to the same period in 2016. This increase is a result of both increased LNG sales and higher average prices realised across all products.
December quarter production of 83.5 PJe was 5.6 PJe lower than the previous quarter, reflecting lower customer demand and planned maintenance at the Lattice Energy operations in Otway. Total
Australia Pacific LNG production for the quarter was stable at 63.4 PJe. Revenue for the December quarter was $686 million, an increase of $8 million compared to the previous quarter, with lower volumes from Otway more than offset by increased LNG sales by Australia Pacific LNG.
Origin CEO Frank Calabria said, “Australia Pacific LNG continued to perform well, delivering reliable upstream and downstream production in the December quarter. This is demonstrated by a total of 35 LNG cargoes loaded and shipped from Curtis Island, with the milestone of our 200th LNG cargo successfully loaded on 1 January 2018.
“As previously disclosed, Origin is scheduled to complete the $1,585 million sale of Lattice Energy to Beach Energy today. This represents a significant milestone in delivering on our commitments to simplify the business, reduce debt and improve returns,” Mr Calabria said.
During the March 2018 quarter, Australia Pacific LNG expects to complete a planned maintenance program with one train outage for approximately 16 days.
NOTE: The reports do not cover other areas of Origin’s integrated business, including electricity generation, energy retailing or non-hydrocarbon development activity.
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