Quarterly Report (PDF 384 kB)

Origin Energy Limited (Origin) has released its Quarterly Report for the period to 30 September, covering the performance of its Integrated Gas and Energy Markets divisions.

Integrated Gas:

  • September quarter APLNG production and sales volume was stable compared to June quarter despite planned downstream shutdown during the period.
  • APLNG commodity revenue increased 25 per cent on prior quarter and 69 per cent on corresponding 2020 quarter, primarily driven by higher realised oil prices.
  • September quarter APLNG realised gas price was A$10.05/GJ, comprising an average LNG price of US$9.09/mmbtu and an average domestic price of A$6.79/GJ (legacy and short-term).
  • Agreement announced for the sale of 10 per cent of APLNG to EIG for $2.12 billion.
  • In the Beetaloo Basin, the 2021 exploration program has been completed with further production testing at the Amungee NW 1H well recording positive results, significantly increasing our assessment of potential commerciality in this area and preliminary results from the Velkerri 76 S2-1 well encouraging.

Energy Markets:

  • Electricity sales volumes were up 3 per cent compared with corresponding 2020 quarter: Retail volumes flat with higher residential demand offset by lower usage due to solar and energy efficiency; 6 per cent increase in business volumes due to net customer wins, more than offsetting COVID impacts.
  • Gas volumes declined 7 per cent compared to September 2020 quarter: Business volumes down 14 per cent, primarily due to expiration of contracts; Retail volumes were flat. Gas used in generation increased 10 per cent due to higher pool prices and to cover an outage at Eraring.

Origin CEO Frank Calabria said, “The rebound in global commodity prices drove a significant increase in revenue at Australia Pacific LNG for the quarter.

“Planned downstream maintenance at Australia Pacific LNG was completed ahead of what is expected to be a busy northern hemisphere winter, and with the plant back at full capacity three JKM-linked spot cargoes have been sold into the tight Asian LNG market for delivery in the December quarter.

“Large customers in Australia continued to enjoy good access to reasonably priced gas, with Australia Pacific LNG average prices at less than $7/GJ.

“The announcement to sell a 10 per cent interest in Australia Pacific LNG represents an opportunity for Origin to crystalise some of the significant value we have created in this world-class asset, while retaining a substantial shareholding and our role as upstream operator.

“In Energy Markets, our electricity volumes increased with net business customer wins and higher residential usage, offsetting lower demand from business and commercial customers due to a downturn in economic activity across many sectors.

“Demonstrating Origin’s portfolio flexibility, gas was diverted to generation this quarter to take advantage of higher pool prices and to cover planned maintenance at Eraring. “Eraring continues to operate flexibly and going forward we may cycle units on standby, subject to market conditions, with the ability to bring units back online if required within three to five days. This will increase overall station efficiency, leading to cost and emissions reductions,” Mr Calabria said.

UnitSep-21 QTR Jun-21 QTR% Change Sep-20 QTR% Change
Integrated Gas – Share of APLNG1
ProductionPJ65.164.71%64.21%
SalesPJ63.163.6(1%)57.410%
Commodity revenue$m633.7507.625%373.969%
Average commodity priceA$/GJ10.057.9826%6.5254%
Energy Markets     
Electricity salesTWh8.98.64%8.73%
Natural gas salesPJ67.159.114%72.0(7%)
Corporate     
Origin capex$m1029210%7438%
Origin investments$m1898n/m1n/m

1 Origin share presented within this report represents 37.5% of APLNG. On 24 October 2021, Origin announced an agreement for the sale of 10% of APLNG to EIG for $2.12 billion. On completion of the sale Origin’s share of APLNG will be 27.5%.

 


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