Australia's Origin Energy Gets Revenue Boost from APLNG Project

Australia's Origin Energy Limited on Friday reported higher first quarter revenue driven primarily by increased LNG production by Australia Pacific LNG (APLNG).

Since APLNG’s first shipment on January 9, 2016, a total of 11 LNG cargoes were loaded and shipped by the project during the quarter that ended on March 31, 2016. Daily production rates from project’s first production train have exceeded design nameplate capacity of 4.5 million tons per annum. First cargo from the project’s second production train is expected during the first half of the 2017 financial year.

Origin recorded production of 60.9 PJe, representing a 12 per cent increase on the prior three-month period and a 65 per cent increase on the corresponding period in 2015 financial year. Revenue for the three months was A$316.4 million, a 49 per cent increase on the previous quarter and a 45 per cent increase on the previous corresponding period.

Given the strong operational performance of APLNG project, Origin has significantly raised its outlook for earnings from LNG this year.

“Underlying LNG EBITDA for the 2016 financial year is expected to increase from A$30-A$80 million to A$100-A$150 million,” the company said.

Australia Pacific LNG was formed in October 2008 and is a joint venture between Origin Energy ConocoPhillips and Sinopec. Majority of the 11 cargoes shipped from APLNG’s facility during the quarter were purchased by Sinopec in accordance with the sale and purchase agreement.