Origin FY oil & gas revenue doubles
Origin Energy has lifted full-year oil and gas production by 40 per cent to 323 petajoules, helped by the ramp-up of operations at its Australia Pacific liquefied natural gas project and better-than-expected output from its conventional oil and gas business.
Oil & gas revenue for the year to June 30 more than doubled to $2.2 billion, helped by the increased production and better prices.
Chief executive Frank Calabria said the result was a mark of the company's strong operational performance.
"The substantial uplift in production and sales revenues for the year reflects strong operational performance across our upstream operations," he said in a statement on Monday.
The APLNG project in Queensland, in which Origin holds a 37.5 per cent stake, has ramped up production over the past 18 months, and started producing from its second train in October 2016.
Output from its Lattice Energy suite of conventional oil and gas assets also exceeded the full-year guidance of 90 petajoules, helped by the start of production at the Halladale/Speculant wells off the southeast coast.
Origin is in the process of divesting Lattice Energy - either through an initial public offer or a sale, in an effort to streamline its business and reduce debt.
For the June quarter, production of 89.2 petajoules was up 12 per cent on the March quarter, while oil & gas sales revenue improved nearly 20 per cent on the previous three months, to $673.4 million.
The energy producer and retailer said it had shipped 33 export cargoes from APLNG in the three-month period, and continued to be a major supplier of gas to Australia's east coast, providing more than 20 per cent of total annual demand.
Origin's fourth quarter numbers are broadly consistent with expectations, Royal Bank of Canada analyst Ben Wilson said.
"(It's) another solid result for APLNG and the E&P business which supports FY17 earnings, at least at the mid-point of guidance," he said.
Origin previously flagged full-year underlying earnings guidance of between $2.450 billion and $2.615 billion.
It will detail full-year results on August 16.
At 1406 AEST, Origin Energy shares were up 0.9 per cent at $6.92 in a firm Australian market.
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