Origin Energy Limited has announced a statutory loss of AUS$25 million for the second half of 2014.
Underlying profit of AUS$346 million for the period decreased 9%. Underlying EBITDA was stable at AUS$1.08 billion, driven primarily by a 22% increase in contribution from Energy Markets, which was offset by a 31% decrease in contribution from Exploration & Production.
This result was mainly due to Origin maximising use of ramp gas that has become available during the start up of LNG production in Queensland, allowing the company to use less gas from its own production.
Australia Pacific LNG (APLNG) remains on track for completion of Train 1 in mid-2015, with sustained production from the first quarter of the 2016 financial year.
Commenting on the half year 2014 results, Chairman Gordon Cairns said: “We have previously stated that the 2015 and 2016 financial years will be transitional years for Origin as the energy markets businesses mature and LNG production in Queensland commences.
"This period will see the completion of our investment in Australia Pacific LNG, for the development of its LNG project, and the commencement of sustained LNG production from the first quarter of the 2016 financial year.”
Origin’s Managing Director, Grant King added: "We are pleased with the underlying operational performance of the business in the first half of the financial year.
"The commencement of LNG production in Queensland has resulted in increased availability of ramp gas. As expected Origin has been able to take this gas into its Energy Markets business which has supported increased gas sales and increased power generation, which helped maintain a stable portfolio cost of electricity despite increased market prices. Progress by Australia Pacific LNG on its LNG project continues to be good with key milestones for the period being met.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/19022015/origin-reports-2h14-results-277/