Integrated Gas: continued growth in revenue from Australia Pacific LNG
· Revenue from Australia Pacific LNG increased 36 per cent in FY2019 driven by higher effective commodity prices.
· Australia Pacific LNG delivered stable production in FY2019, despite a period of significant planned upstream maintenance.
· Total cash received from Australia Pacific LNG of $943 million for FY2019.
· Effective commodity prices eased in the June quarter, driven by lower oil prices.
· Preparatory work continues in the Beetaloo Basin for two horizontal appraisal wells planned over calendar 2019.
Energy Markets: lower electricity customer usage; increased external gas sales
· Electricity sales volumes decreased by 3 per cent in FY2019 due to lower customer usage and account numbers.
· External gas sales volumes increased by 3 per cent in FY2019 driven by higher Business sales. This was offset by lower sales to internal generation.
Origin CEO Frank Calabria said: “Australia Pacific LNG continues its strong operational and financial performance. Revenue was up 36 per cent on the prior year driven by higher effective commodity prices which translated to $943 million of cash flow to Origin.
“Pleasingly a number of Australia Pacific LNG gas supply contracts were signed during the quarter with domestic manufacturing customers. This demonstrates the important role the gas industry plays in supporting local industry.”
Corporate costs in FY2019 are expected to include a non-cash remediation provision increase of $160 - $180 million primarily relating to further on-site assessment of required works at a former gas works site in South Australia.
The $231 million sale of Ironbark to Australia Pacific LNG is expected to complete in August and Australia Pacific LNG has retained sufficient cash during FY2019 to fund the transaction.