Origin Energy Sees Revenue Rise Despite Forecast of Lower APLNG Output

Origin Energy reported higher revenue from its stake in Australia Pacific LNG (APLNG) for the three months ended June 30, despite expected lower production output in fiscal 2027. The company's share of APLNG revenue rose three percent sequentially to AU$497 million ($349.29 million). This increase was driven by stronger sales volumes and a higher realised price per million British thermal units (BTUs) of $9.93, up from $9.51 in the previous quarter.

The production share of Origin Energy's stake in APLNG remained broadly flat during this period, while total sales rose four percent. This growth in sales volumes was a key contributor to the increase in revenue for the company. Liquefied natural gas prices were volatile due to disruptions caused by the Iran war and subsequent shipping challenges through the Strait of Hormuz.

Origin Energy's CEO Frank Calabria stated that the benefits of higher oil prices since February will be reflected in fiscal 2027, thanks to the long-term export contracts held by APLNG. However, this growth is expected to come at a cost, with capital and operating expenditure projected to increase to AU$3.0 billion-AU$3.3 billion as drilling activity ramps up.

The company's production forecast for fiscal 2027 shows output declining to between 625 PJ and 670 PJ due to the natural decline of older gas fields. New drilling is expected to take about two years to reach peak output, which will support future production levels.