Join our daily newsletter At The Bell to receive exclusive market insights
- Origin Energy (ORG) highlights the June quarter performance of its integrated gas and energy markets divisions
- Gas revenue from Australia Pacific LNG saw an 11 per cent decrease in the June quarter due to lower oil prices, although was 21 per cent higher for FY23
- Energy electricity sales increased by one per cent in 2023, driven by a three per cent increase in business volumes
- Origin acquires Warrane farm as a greenfield wind development opportunity and receives a five per cent equity interest in Allegro Energy during the quarter
- ORG shares are down 0.47 per cent, trading at $8.48 at 2:36 pm AEST
Origin Energy (ORG) has reported its quarterly results for the three-month period ending June 30 2023, highlighting the performance of its integrated gas and energy markets divisions.
In the integrated gas segment, revenue from Australia Pacific LNG saw an 11 per cent decrease in the June quarter due to lower oil prices, although it was 21 per cent higher for the financial year.
Production for the quarter was higher than the previous quarter, as the company carried out more well workover and optimisation activities.
The Australia Pacific LNG’s average realised LNG price for the quarter was US$12.24 (A$18.34) per metric million British thermal units (mmbtu), and the average domestic price equalled A$6.79/GJ.
In the energy markets division, electricity sales volumes increased by one per cent for the fiscal year 2023, driven by a three per cent increase in business volumes. However, retail volumes saw a two per cent decrease primarily due to lower household usage.
Gas sales volumes, on the other hand, decreased by five per cent compared to the previous year, due to lower gas usage for power generation and a reduction in business volumes.
Origin made notable strides in its renewable energy endeavours, acquiring a five per cent equity interest in Allegro Energy, a clean-tech company based in Newcastle. Additionally, the company acquired Warrane Farm as a greenfield wind development opportunity in the New England Renewable Energy Zone.
“I’m pleased to report strong operational performance across both our integrated gas and energy markets businesses,” ORG CEO Frank Calabria said.
“In Queensland, our teams worked hard to bring more wells online and optimise well performance, and this drove a recovery in gas production, following the impacts of wet weather in prior periods.
“Improved production has enabled Australia Pacific LNG to continue to meet the gas needs of export customers and provide a major contribution to the domestic market.”
Origin’s progress in growing renewables and storage is evident through the final investment decision on the Eraring battery and a trial of long-duration storage at the site.
Despite challenges posed by market fluctuations, Origin remains committed to advancing sustainable energy solutions and strengthening its market position.
ORG shares were down 0.47 per cent, trading at $8.48 at 2:36 pm AEST.
