According to the company’s website press release on October 31, 2022, Origin Energy Limited (Origin) has released its Quarterly Report for the period to 30 September 2022, covering the performance of its Integrated Gas and Energy Markets divisions.
Integrated Gas:
- Australia Pacific LNG revenue for the September quarter increased 1 per cent on the prior quarter and 64 per cent on the corresponding quarter in 2021, to $2,768 million, driven by higher realised oil prices.
- Quarterly production declined 2 per cent to 167.5 PJ, from 170.5 PJ in the June quarter, due to wet weather impacting access to wells.
- Planned downstream maintenance led to a 19 per cent decline in LNG sales volumes compared to the June quarter.
- Domestic sales volumes increased 62 per cent in the quarter, and no spot LNG cargoes were delivered due to the downstream maintenance shutdown.
- The outlook for the LNG trading business has improved, particularly for FY2025, where hedging at favourable market prices has resulted in an expected LNG trading EBITDA of $350 million – $550 million. This outlook remains subject to market prices on unhedged volumes, operational performance and delivery risk of physical cargoes, shipping and regasification costs.
Energy Markets:
- Electricity and gas spot prices reduced when compared with the June quarter but remain considerably higher than a year ago due to higher international coal and gas prices.
- Total electricity sales volumes rose 8 per cent from the same quarter a year ago. Retail sales volumes fell by 2 per cent due to the continued increase in solar uptake and energy efficiency, while business volumes gained 18 per cent on new customer wins.
- Gas sales volumes to business customers rose 23 per cent on net new business customer wins and increased short-term sales, while retail gas sales volumes remained relatively flat.
- Capital investment rose to $170 million during the quarter, including a $163 million (£94 million) investment in Octopus Energy and $6 million for the acquisition of 60 MW Yanco Solar Farm in the NSW Riverina district.
- Octopus Energy has acquired 2.5 million Bulb customer accounts from the UK government, making it the second-largest domestic energy supplier in the UK market by customer accounts, with a total of more than 8 million customer accounts (4.7 million customers). Origin is not required to contribute any funding for this transaction.
Origin CEO Frank Calabria said, “Market conditions have improved following the incredibly challenging June quarter during which we experienced significant power supply challenges and elevated wholesale prices across the NEM.
“Australia Pacific LNG delivered a very solid $2,768 million in revenue for the quarter, relatively steady on the June quarter but up 64 per cent on the prior year, due to higher realised oil prices. This quarterly performance was particularly strong given the impact of wet weather and planned downstream maintenance.
“Australia Pacific LNG continues to fulfil its commitment to supply the domestic market, providing it with 52.6 PJ of gas during the quarter.
“Within our Integrated Gas business, the outlook for the LNG trading business has improved. For FY2025, we have hedged around 70 per cent of volumes and we expect EBITDA in the range of $350-$550 million. This outlook remains subject to market prices on unhedged volumes, operational performance and delivery risk of physical cargoes, and shipping and regasification costs.
“In Energy Markets, net new business customer wins drove electricity sales volume growth, offsetting weaker retail sales volumes due to improvements in energy efficiency and an increase in solar uptake.
“In line with our strategy, we continued to invest in renewable and cleaner energy and customer solutions during the quarter with a $163 million (£94 million) investment to maintain our 20 per cent stake in the leading UK energy and technology company, Octopus Energy, and $6 million for the acquisition of the 60 MW Yanco Solar Farm development in the NSW Riverina,” Mr Calabria said.
