Origin reports stable production and revenues
Origin Energy Limited (Origin) has released its Quarterly Production Report for the quarterended 30 September 2017 (September Quarter).
Origin’s quarterly production of 89.1 PJe was stable compared to the June quarter, reflecting a sustained level of production following completion of the 90 day two-train operational test at Australia Pacific LNG.
Compared to the corresponding period in FY2016, Origin’s quarterly production increased by 20 per cent. This primarily reflected increased LNG production by Australia Pacific LNG and increased production at Otway.
Revenue for the September Quarter 2017 was $678.6 million, an increase of 1 per cent compared to the June quarter and a 58 per cent increase on the corresponding period in FY2016, reflecting higher production at Australia Pacific LNG and higher realised prices across all products.
During the quarter, Origin entered into an agreement to sell its conventional upstream oil and gas business, Lattice Energy, to Beach Energy for $1,585 million. The transaction is effective as at 1 July 2017 with completion subject to satisfaction of customary conditions, including appprovals from the New Zealand Minister of Energy and Resources and the New Zealand Overseas Investment Office.
Origin CEO Frank Calabria said, “We reached another major milestone during the quarter announcing the sale of Lattice Energy, which delivers on our commitment to simplify our business and reduce debt. As part of the sale, Origin secured access to a significant portion of Lattice Energy’s future east coast gas production under long-term gas supply agreements to support our domestic gas business.
“At Australia Pacific LNG planned maintenance was completed on both trains. Following the formal completion of the Lenders’ Test, the remaining US$3.4 billion of shareholder guarantees relating to the US$8.5 billion project finance facility were released.
“Australia Pacific LNG continues to be a major supplier of gas to Australia’s east coast, and is expected to provide almost 30 per cent of total east coast gas market demand in 2018, as well as meeting its export contract commitments. During the quarter, a total of 32 LNG cargoes were loaded and shipped under the project’s long term Sales and Purchase Agreements,” Mr Calabria said.
During the December quarter, Australia Pacific LNG expects to complete a planned maintenance program with a 0.5 train outage for approximately 10 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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