Origin Energy June quarter LNG revenue fell on lower prices
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The news: Natural gas and electricity retailer Origin Energy saw a slight increase in liquefied natural gas production in the June quarter but revenue fell amid lower realised prices. Full-year production has also fallen compared to last year.
The numbers: Origin Energy told the market that June quarter revenue was more than $2.24 billion, 3% lower than the previous quarter.
June quarter production came in at 169.2PJ, 1% higher than the previous quarter because there was one additional day in the period. However, revenue fell 3% "predominantly driven by a lower realised LNG price”.
In the June quarter the average realised LNG price was USD10.26 ($15.02), a 4% drop compared to the March quarter. For the full year the average realised LNG price was USD11.29, which was 5% lower than FY24.
Full-year production came in at 682.1PJ, which was 2% less than FY24. Meanwhile, full-year revenue was largely unchanged at just over $9.9 billion. Capital expenditure for FY25 came in at $1.47 billion, a 125% increase on FY24.
For FY26, Origin is guiding production between 635 and 680PJ due to natural field decline. But capital expenditure and operational expenditure guidance is set at between $2.9 billion and $3.2 billion, and $4.3 to $5 per GJ respectively.
Meanwhile, electricity sales fell by 2% quarter on quarter, but for the full year lifted by 1%. Energy market natural gas sale volumes however lifted 24% quarter on quarter, but slipped 3% over the full financial year.
The company also received fully-franked dividends of $797 million in FY25 and a further $335 million on 3 July 2025.
What they said: Origin CEO Frank Calabria said production in FY26 is expected to be lower "reflecting the impact of natural field decline in some operated and non-operated fields”.
“We are already advanced in executing our strategy, which is to increase investment in well optimisation ahead of expected production from development drilling and exploration, as well as potential infrastructure projects to support medium term supply," he said.
“We are encouraged by the early success we have seen from executing optimisation initiatives in FY25, and continue to see strong reserves replacement.”
The source: ASX
