Origin Energy (ASX:ORG) released its Quarterly Production Report for the March quarter. Production came in at 36.9 petajoules equivalent (PJe), which was a 10 per cent increase compared to the December 2014 quarter. When compared to the previous corresponding period, production was 14 per cent higher. The increased production was primarily due to increased production by Australia Pacific LNG. Sales revenue came in at $198.4m for the quarter, a 16 per cent decrease compared to the previous quarter. Compared to the previous corresponding period, sales revenue fell 22 per cent. The drop in sales revenue was attributed to lower sales of third party volumes, timing of product liftings and lower average commodity prices.
During the quarter, Origin continued to focus on development and exploration activities, the report said. Production testing on the Senecio 3 appraisal well was completed. This confirmed the potential commerciality of the resource and two new production wells at BassGas were successfully spudded. David Baldwin, Chief Executive Officer of Integrated Gas, noted the increase in production efficiencies and exploration despite the drop in sales revenue. “Australian Pacific LNG continues to report strong progress, and at the end of the March quarter the Upstream project was 93 per cent complete and the Downstream project was 89 per cent complete,” he said. Mr. Baldwin also cited the development of 1,069 new wells that have been drilled and seven gas processing trains that have been commissioned. Shares of Origin Energy are down 1.5c, or .19 per cent, near the end of trading on Thursday. ORG was has fallen 14.46 per cent in the last 12 months but has risen 9.21 per cent so far this year.
Author: Matthew Dibb
Apr 30, 2015
Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.