30 July 2021

Quarterly Report June 2021

Origin Energy Limited (Origin) has released its Quarterly Report for the period to 30 June 2021, covering the performance of its Integrated Gas and Energy Markets divisions.

Integrated Gas:

  • FY2021 production stable despite a 53 per cent reduction in capital expenditure reflecting strong field performance. Commodity revenue declined 35 per cent reflecting lower realised oil prices.
  • Origin received cash distributions from Australia Pacific LNG of $709 million in FY2021.
  • June quarter production stable and commodity revenue increased 19 per cent from the March quarter driven by higher realised oil prices and higher domestic volumes. Realised gas price of A$7.98/GJ in the June quarter, comprising an average LNG price (contracted and spot) of US$7.23/mmbtu and an average domestic price of A$5.21/GJ (legacy and short-term).

Energy Markets:

  • COVID-19 drove subdued business activity but higher residential demand in FY2021.
  •  FY2021 electricity sales volumes were flat compared to FY2020. Gas sales volumes decreased by 11 per cent, primarily driven by expiration of business contracts as well as lower demand from gas-fired generation.
  • June quarter electricity sales volumes increased 9 per cent on the June 2020 quarter primarily reflecting a recovery in business demand as well as cooler weather. Gas sales volumes decreased 12 per cent on the June 2020 quarter driven by expiration of business contracts and less gas directed to generation due to a planned outage, partially offset by an increase in retail with higher customer numbers and recovery of SME demand.

Origin CEO Frank Calabria said, “The strong performance of Integrated Gas continues, with full-year production at Australia Pacific LNG stable even as we significantly reduced development activity and costs, reflecting the performance of the gas fields.

“Higher realised commodity prices and higher domestic volumes drove a strong increase in Australia Pacific LNG revenue during the quarter, while the continued recovery in global oil demand has driven stronger JCC prices and we expect this to flow through to higher effective prices into FY2022.

“Pleasingly, cash distributions from Australia Pacific LNG were $709 million in FY2021, compared to our guidance of greater than $650 million.

“Wholesale electricity prices recovered strongly during the quarter due to a number of unplanned baseload plant outages in the National Electricity Market and a winter cold snap, which also drove higher demand for gas.

“As the pandemic continues to impact on sectors such as travel, hospitality, recreation and education, electricity sales volumes were largely flat over the year with higher residential demand.

“Gas sales were down year on year, with higher residential demand but lower business volumes. Less gas was used for electricity generation with lower wholesale prices for most of the year, however gas peakers have been in high usage over recent weeks in response to outages at other plants, reinforcing the crucial role these assets play in providing reliable power when it is needed.

“The development of Origin’s new, more efficient retail operating model and migration to the Kraken platform is progressing very well, with 250,000 customers now on the platform. We are in a strong position to start scaling up migrations towards a goal to have all our customers on the new platform by the end of 2022,” Mr Calabria said.

 

Unit

Jun-21

Mar-21

% Mvt

Jun-20

% Mvt

FYTD-21

FYTD-20

% Mvt

Integrated Gas – Share of APLNG

       

 

 

 

Production

PJ

64.7

65.4

(1%)

64.5

0%

262.8

265.3

(1%)

Sales

PJ

63.6

60.6

5%

59.8

6%

246.1

250.6

(2%)

Commodity Revenue

$m

507.6

427.5

19%

610.2

(17%)

1,707.0

2,643.5

(35%)

Average commodity price

A$/GJ

7.98

7.05

13%

10.21

(22%)

6.94

10.55

(34%)

Energy Markets

 

 

 

 

 

 

 

 

 

Electricity sales

TWh

8.6

8.4

2%

7.8

9%

33.5

33.5

-

Natural gas sales

PJ

59.1

42.2

40%

67.2

(12%)

231.3

259.2

(11%)

Corporate

 

 

 

 

 

 

 

 

 

Origin capex

$m

92

74

24%

127

(28%)

339

500

(32%)

Origin investments

$m

8

104

(92%)

141

(94%)

161

165

(2%)

Net cash from APLNG

$m

320

124

158%

603

(47%)

709

1,275

(44%)

 


Contacts
 

 

Media

Tracy Ong

Ph: +61 2 8345 5213

Mobile: +61 408 400 227

 

Investors

Liam Barry

Ph: +61 2 9375 5991

Mobile: +61 401 710 367