March quarter production and sales boosted by LNG as Australia Pacific LNG ships 11 cargoes
Quarterly Production Report (14 pages)
Origin Energy Limited (Origin) today released its Quarterly Production Report for its Integrated Gas business for the quarter to 31 March 2016.
During the period, Origin recorded production of 60.9 PJe, representing a 12 per cent increase on the prior three-month period and a 65 per cent increase on the corresponding period in FY2015. The performance was primarily driven by increased LNG production by Australia Pacific LNG following the first LNG shipment on 9 January 2016. A total of 11 LNG cargoes were loaded and shipped by the project during the quarter.
Revenue for the three months to 31 March 2016 was $316.4 million1, a 49 per cent increase on the previous quarter and a 45 per cent increase on the previous corresponding period, primarily reflecting the commencement of LNG sales by Australia Pacific LNG.
Origin Chief ExecUtive Officer Integrated Gas, Mr David Baldwin said, “The commencement of LNG exports from Australia Pacific LNG made a strong contribution to Origin’s overall production and sales results during the quarter.
“The majority of the 11 cargoes shipped from Australia Pacific LNG’s Curtis Island facility during the quarter were purchased by Sinopec in accordance with the Sale and Purchase Agreement. The project shipped an additional four cargoes during April.
“Pleasingly, daily production rates from Australia Pacific LNG’s first production train have exceeded design nameplate capacity of 4.5 million tonnes per annum. First cargo from the project’s second production train is expected during the first half of the 2017 financial year,” Mr Baldwin said.
Given the strong operational performance of Train 1 since shipment of the first LNG cargo on 9 January, Origin expects to recognise Train 1 revenue from 1 March 2016. As a result, Underlying LNG EBITDA for the 2016 financial year is expected to increase from $30-$80 million to $100-$150 million. LNG contribution to Underlying NPAT remains within the original guidance range of ($170) – ($220) million.
Elsewhere, the installation of the new Halladale and Speculant pipeline from the wellsite to the Otway Gas Plant commenced during the March quarter. First gas from the Halladale and Speculant wells is on track to commence early in the 2017 financial year, which will increase utilisation of the onshore Otway facilities.
NOTE: For further details, please refer to the Quarterly Production Report released today. The Quarterly Production Report does not cover other areas of the integrated energy businesses undertaken by Origin, including electricity generation, energy retailing and non-hydrocarbon development activity.
1Includes capitalised revenue related to Australia Pacific LNG ramp gas volumes and LNG sales and Gain / (Loss) on forward sales and hedging.
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