Origin Energy June quarter revenue falls

Electricity and gas retailer Origin Energy’s fourth-quarter revenue from its share in the Australia Pacific LNG (APLNG) project fell 5.2 per cent as coronavirus-related disruptions hit demand and hurt prices.

Like energy companies across the globe, Origin has struggled with a drop in oil prices and this month outlined a one-off charge of around $1.2 billion.

The pandemic has hit demand for natural gas and electricity, Chief Executive Officer Frank Calabria said, adding that some residential and small- to medium-enterprise customers are facing financial difficulties.

The company will therefore waive late payment fees until October 31, he said.

The APLNG project raked in revenue of $610.2 million in the June quarter, compared with $643.4 million a year earlier. 

Production rose marginally to 64.5 petajoules from 64 PJ.

APLNG, a joint venture with US-based ConocoPhillips and China’s Sinopec, delivered record production of 265.3 PJ in 2020, Origin said.

However, full-year revenue declined 5 per cent as increased production was offset by fewer purchases, a higher proportion of spot LNG sales and lower domestic prices.

Meanwhile, Origin’s electricity sales in its energy markets division were 7.8 terawatt-hour (TWh), down from 8.7 TWh last year. 

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