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AsiaElec GAS-FIRED GENERATION AsiaElec

Origin’s APLNG revenue dips 5% in FY20

AUSTRALIA ORIGIN Energy has revealed that its share materially declined in the April-June quarter
of revenue from the Australia Pacific LNG owing to weaker demand linked to the coro-
(APLNG) project declined 5% in financial year navirus (COVID-19) pandemic and also the
2019-2020 owing to the coronavirus (COVID- disagreement among OPEC+ members over
19) pandemic’s impact on global energy demand. production cuts in early March. As a result, APL-
The company said its share amounted to NG’s realised lagged oil price fell to $68 per barrel
$2.64bn and had fallen despite an uptick in pro- in 2019-2020 from $73 per barrel in 2018-2019.
duction, which had been offset by lower pur- The company noted that domestic gas reve-
chases and gas inventory movements. nue had shrunk by 12% owing to smaller sales
APLNG’s total natural gas production, for volumes and lower average prices. The compa-
both the export market and domestic buyers, ny’s average domestic spot gas price for the final
climbed by 4% year on year to 707.6 PJ (18.43bn quarter of the financial year amounted to $4.39
cubic metres) from 679.1 PJ (17.69 bcm) a year per GJ ($168.52 per 1,000 cubic metres), com-
earlier. Origin said LNG production had climbed pared with $9.53 per GJ ($365.83 per 1,000 cubic
by 1% to 8.71mn tonnes, while sales remained metres) in the same three months of the previous
flat at 8.69mn tonnes. year.
Origin cited improved operated and non-op- Origin CEO Frank Calabria said: “The pan-
erated field performance with higher well avail- demic has impacted natural gas and electric-
ability and facility reliability as being behind the ity demand and some residential and small to
uptick in output, but noted that operated gas medium enterprise [SME] customers are facing
production fell in the April-June quarter owing financial difficulties. Our focus has been on sup-
to lower demand. porting customers, and we have extended our
Revenue from LNG sales dipped 4% y/y to commitments not to disconnect those in finan-
$6.19bn on the back of higher sales into a weaker cial distress and to waive late payment fees until
spot market. Origin said Japan Crude Cocktail October 31.”™
(JCC) indexed contracts and spot prices had

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