Origin Energy posts production dip due to stranded vessel
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The news: Origin Energy reported a decline in LNG production in the December quarter, which the company attributed to a stranded vessel halting operations and leaving three ships unable to be loaded.
The numbers: The Australian energy giant posted a 4% dip in LNG production in the December quarter, owing to the stranded vessel incident in late November. Elsewhere, half-year production was up 3% compared with a year earlier, while electricity sales increased by 6% and gas sales declined 5% over the same period. Origin also said it plans to invest an additional £280 million ($530 million) in UK-based Octopus Energy, increasing its interest by 3% to 23%.
Origin said quarterly revenue from its stake in APLNG was 1% higher at $2.38 billion. Half-year revenue was down 21% as global gas prices retreat and domestic demand falls.
The context: The result reveals the toll of the days-long saga that began when the Hong Kong-owned ship, Cesi Qingdao, which was due to travel to Wenzhou in China, lost power and had to remain connected to the mains at Australia Pacific LNG facility on Curtis Island.
Origin said half-year production was 3% higher compared with a year earlier, driven by an increased number of wells online and effective well optimisation activity.
What they said: Origin CEO Frank Calabria said: "It was pleasing to see production rebound to a daily record by mid-December, following the turndown due to the LNG vessel that lost power at Curtis Island in late November."
The source: ASX announcement
