Origin reports lower LNG revenue and production for March quarter
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The news: Origin Energy has reported lower March quarter production of LNG compared to the prior quarter, at 164.5 petajoules. There was a natural field decline and the quarter was two days shorter than the prior period.
LNG revenue was down $247 million, to $1.86 billion, compared to the prior quarter. This reflected lower realised LNG prices, with Origin citing the appreciation in the Australian dollar compared to the US dollar as well as lower sales volumes.
The numbers: Electricity sales volumes increased 4% over the quarter, driven by strong growth in business volumes with the data centre sector largely behind this rise.
Gas volumes dropped by 32% over the quarter, which was in line with expectations.
Origin said that 75% to 85% of Eraring coal consumption expected for the 2027 financial year is either fully contracted or hedged.
Origin also provided an update on Octopus Energy Group, in which it has a 23% stake. It noted that its 2026 financial year earnings before interest, tax, depreciation and amortisation is now expected to be between -$70 million and $30 million, compared to previous guidance of $0 to $150 million. This was due to changes in the Energy Company Obligation scheme, adverse weather in the UK and higher gas capacity charges.
What they said: Origin CEO Frank Calabria said in a statement that global commodity markets have experienced “significant volatility” over the March quarter with “the conflict in the Middle East affecting oil and LNG supply”.
“Changes in oil prices have a lagged effect on Australia Pacific LNG’s long term export contracts, and we do not expect this to flow through to results until FY27,” he said.
“In Australia, our domestic electricity and gas markets have remained well supplied and largely insulated from these global price moments, which is good for households and businesses. The duration and trajectory of the conflict will ultimately determine the longer-term impact on energy markets,” he said.
He said Origin “performed well” over March at an operational level.
“In Energy Markets, Origin continued to grow its share of Australia’s data centre market, and we’re well positioned to support the further growth in demand from this sector through grid connections, long-term renewable contracts, and on-site solar and batteries,” he said.
The source: ASX
