Australian energy company, Origin Energy has forecast lower production from its Australia Pacific LNG (APLNG) production company this year.
However, Origin reported an 11% sequential rise in second quarter fiscal year revenue from its stake in the project on the back of higher gas prices.
This year’s APLNG production - Origin’s joint venture with ConocoPhillips and Sinopec - was forecast to be in the range of 670 petajoules (PJ) to 690 PJ, down 2% -3% from its previous guidance.
APLNG is the largest producer of natural gas in eastern Australia.
Origin said that lower performances at some of its Queensland projects, coupled with lacklustre performance in non-operated assets, due to unplanned maintenance, impacted the forecast.
“APLNG 2Q results were largely in line, although the downgrade to FY25 production guidance on field performance is concerning for the trade-off between capex and production,” Australian Citi analysts said in a note.
Origin’s revenue from its stake in APLNG rose to A$681 mill ($422.7 mill) in the quarter ended 31st December, compared with A$615 mill in the previous quarter.
The company realised $12.20 per MMBtu for its LNG, compared with $11.95 in the first quarter of the fiscal year.
Origin also revealed that its LNG trading EBITDA saw a 270% rise to A$285 mill in the half year of FY25, in line with its forecast.
APLNG’s LNG sales rose 6% to 38.4 PJ from the previous quarter, the company said, adding that total production share from the project dipped 1% sequentially to 47.4 PJ.
