Origin shares hit two-year highs yesterday after the company released positive September quarter results.
The shares opened at $7.91 and quickly ran up to $8.12 – the highest price point since late 2015, before easing back to end at $7.94, down half a per cent.
It wasn’t just another solid night for global oil prices that boosted Origin shares yesterday – the latest quarterly report contained news of a surge in oil and gas revenues in the three months thanks to the continuing ramp-up at its Australia Pacific liquefied natural gas project in central Queensland.
The energy producer and retailer said oil and gas revenue for the three months to September 30 rose to $678.6 million up 58 %on the same period a year earlier, but it was up just 1% on the three months to June.
Sales volume for the quarter rose 16% on a year ago to 91.4 petajoules, but was down 1% from the June quarter.
Production was largely steady on the previous three months, at 89.1 petajoules, but up that was 20% higher than a year ago of higher APLNG output (Origin owns 37.5%) and increased production from the Otway fields in Bass Strait.
The APLNG plant shipped a total of 32 cargoes during the September quarter.
Origin CEO Frank Calabria said in yesterday’s statement, “We reached another major milestone during the quarter announcing the sale of Lattice Energy, which delivers on our commitment to simplify our business and reduce debt. As part of the sale, Origin secured access to a significant portion of Lattice Energy’s future east coast gas production under long-term gas supply agreements to support our domestic gas business.
“At Australia Pacific LNG planned maintenance was completed on both trains. Following the formal completion of the Lenders’ Test, the remaining US$3.4 billion of shareholder guarantees relating to the US$8.5 billion project finance facility were released.
“Australia Pacific LNG continues to be a major supplier of gas to Australia’s east coast, and is expected to provide almost 30 per cent of total east coast gas market demand in 2018, as well as meeting its export contract commitments. During the quarter, a total of 32 LNG cargoes were loaded and shipped under the project’s long term Sales and Purchase Agreements,” Mr Calabria said.
In September Origin Energy agreed to sell Lattice Energy and its conventional oil and gas exploration business to the Kerry Stokes-backed Beach Energy for $1.585 billion.
