Integrated Gas: record production and increased revenue for the quarter
· Record production by Australia Pacific LNG, rising 2 per cent from the September quarter, benefiting from a ramp-up of the Eurombah Reedy Creek InterConnect pipeline, less maintenance and improved non-operated production performance.
· Revenue rose 4 per cent on prior quarter to $717 million.
· Australia Pacific LNG delivered net cash distributions of $520 million in H1 FY2020.
· Drilling of Kyalla 117 vertical section completed in December 2019 as Beetaloo exploration continues.
Energy Markets: electricity and gas volumes lower year-on year, with no change to FY2020 EBITDA guidance
· Electricity and Gas sales declined quarter on quarter mainly due to seasonality.
· Electricity sales decreased 5 per cent on the December 2018 quarter, reflecting lower business sales, and reduced retail usage and customer numbers.
· Gas volumes were down 12 per cent on the December 2018 quarter due to the roll off of some short-term wholesale contracts, partially offset by increased Retail volumes and higher sales to generation. Origin continues to actively offer gas to domestic customers and the market remains well-supplied.
· Unit at Mortlake Power Station in Victoria returned to service in late December 2019.
Origin CEO Frank Calabria said, “Australia Pacific LNG has again delivered a strong performance with record production and 35 cargoes loaded and shipped for the quarter, while continuing to be a major supplier into the domestic market.
“As expected, our electricity and gas volumes were down for the period, though our existing EBITDA guidance for the full year is unchanged. Importantly, our generation team successfully returned a Mortlake unit to service ahead of the summer peak demand period, following an electrical fault in July.
“Despite the challenges posed by bushfires in recent weeks, our power stations are operating well and supplying the market as needed, and we continue to support our customers that have been impacted,” Mr Calabria said.