Oz Origin's APLNG Revenue Drops 46%

Australian gas and power retailer, Origin Energy, October 30 said revenue from its stake in Australia Pacific LNG (APLNG) for the three months to September 30 (Q1 2021) dropped 46% yr/yr owing to a drop in realised commodity prices.

The company's revenue in Q1 was A$374mn (US$264mn) as against A$688.3mn in the year-ago period. Origin’s share of production was 64.2 petajoules, unchanged yr/yr, it said. APLNG’s realised lagged oil price in Q1 was US$43/b, down from US$69/b in the year-ago period, Origin said.

The company expects spot LNG prices to recover in Q2. “Spot LNG prices started to recover in September as global gas demand improved along with constrained production at LNG plants. Prices are expected to recover further in Q2 FY2021 with LNG spot prices now above US$6.50/mn btu for December deliveries,” it said.

APLNG (a joint venture comprising Origin, CnocoPhillips and Sinopec) is Australia’s largest producer of coalbed methane and supplies gas to Queensland’s domestic gas market, while also processing coalbed methane into LNG for exports. Origin owns a 37.5% stake in APLNG.