30 October 2020

Quarterly Report September 2020

Integrated Gas

  • September quarter production was stable compared to the prior quarter, with higher operated production offset by reduced non-operated production due to planned maintenance.
  • Revenue fell 39 per cent during the quarter primarily driven by lower realised prices. Sales volumes also declined by 4 per cent, with lower purchases and less gas volume taken from non-operated production due to lower demand.
  • September quarter realised price was A$6.52/GJ, comprising an average LNG price (contracted and spot) of US$5.81/mmbtu (A$7.73/GJ) and an average domestic price of A$3.30/GJ.

Energy Markets

  • Electricity sales volumes were in line with the corresponding quarter in 2019: 5 per cent increase in Retail volumes largely driven by higher residential demand, with a 6 per cent reduction in Business volumes largely due to COVID-19.
  • Gas volumes declined 7 per cent on September 2019 quarter: 5 per cent increase in Retail volumes was more than offset by a reduction in Business volumes and sales to generation.

Origin Energy CEO, Frank Calabria said, “Gas production was steady for the quarter, however as expected, realised prices were lower as the lagged impact of oil prices on Australia Pacific LNG’s contracts started to flow through to revenues. The majority of sales are under long-term contracts, which provided some protection from soft LNG spot prices during the quarter.

“With demand for LNG continuing to be subdued and strong performance from our gas fields, Origin has reduced drilling activity for the year across upstream operations at Australia Pacific LNG, with Origin’s share of capital expenditure $33 million lower for the quarter.

“We are progressing well with our exploration in the Beetaloo, recently completing fracture stimulation which paves the way for extended production testing. We look forward to sharing further updates on our Beetaloo activity soon.

“It is encouraging to see electricity demand has largely stabilised and returned to pre-COVID levels in most states, however business demand remains impacted, particularly in Victoria where there have been ongoing restrictions.

“We continue to make good progress on the Kraken roll out, with a small team of energy specialists trained in the platform and ready to service the first cohort of 50,000 customers that are targeted to be migrated by the end of 2020.

“We also continue to help customers who have been financially impacted by the pandemic, and will be extending our support package, including no disconnections for customers who keep in touch with us about any payment difficulty. We encourage any customer having trouble paying their bill to reach out so we can help,” Mr Calabria said.

 

Unit

Sep-20

Jun-20

% Mvt

Sep-19

% Mvt

Integrated Gas – Share of APLNG

       

Production

PJ

64.2

64.5

0%

66.5

(3%)

Sales

PJ

57.4

59.8

(4%)

63.2

(9%)

Commodity Revenue

$m

373.9

610.2

(39%)

688.3

(46%)

Average commodity price

A$/GJ

6.52

10.21

(36%)

10.89

(40%)

Energy Markets

           

Electricity sales

TWh

8.7

7.8

11%

8.8

(1%)

Natural gas sales

PJ

72.0

67.2

7%

77.1

(7%)

Corporate

 

 

 

 

 

 

Origin capex

$m

74

127

(42%)

97

(24%)

Origin investments

$m

1

141

(99%)

3

(67%)


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