Oz Origin's 1Q Oil, Gas Revenue Rises
Australian energy retailer and gas/LNG producer, Origin Energy, said October 31 that its oil and gas revenue increased year-on-year for the three months to September 30 (its 1Q 2019) due to higher gas and LNG prices.
Origin reported 1Q 2019 Australia Pacific LNG (APLNG) revenue of A$640mn (US$454mn) compared with A$475mn in the same period a year ago, marking an increase of 35%. Higher commodity prices, together with a lower AU$/US$ exchange rate, have resulted in higher revenue for APLNG, Origin said. Its share of APLNG production was steady at 64.3 petajoules (1.7bn m3) for the quarter. A total of 29 LNG cargoes were loaded and shipped by Origin during 1Q versus 32 cargoes in the year-ago quarter, Origin added.
APLNG (a jv between Origin, ConocoPhillips and Sinopec) is Australia’s largest producer of coalbed methane and supplies gas to Queensland’s domestic gas market, while also processing CBM into LNG for exports.
Of the total revenue of A$640mn, Origin’s LNG sales revenue for 1Q was A$527mn, up 37% year-on-year while domestic gas sales revenue was A$113.5mn, a rise of 27% year-on-year.
The average realised LNG price during the quarter was US$9.63/mn Btu, versus US$7.34/mn Btu a year ago. The average domestic gas price for the quarter was AS$5.29/gigajoules compared to A$4.42/gigajoules in the same quarter last year.
According to Origin, LNG prices remain high owing to delays at key international liquefaction projects, low gas inventory levels in Europe and continuing strong demand in China.
“Australia Pacific LNG continues to produce at steady rates, allowing it to meet its LNG contract commitments and deliver large volumes of gas into the east coast domestic market, while higher realised prices delivered a strong uplift in revenue for the quarter,” Origin CEO Frank Calabria said.