(Reuters) - Origin Energy on Wednesday said total cash from its stake in Australia Pacific LNG (APLNG) more than doubled during the year and beat its own forecast, helped by higher oil prices.
Origin said it received A$943 million ($648 million) from APLNG in fiscal 2019, outpacing guidance of A$850 million and about 160% higher than the previous year.
APLNG, the biggest producer of liquefied natural gas (LNG) in eastern Australia, is a joint venture between Origin, ConocoPhillips, and China’s Sinopec.
Origin, which controls nearly a third of Australia’s retail energy market, said fourth quarter electricity volumes in its energy markets fell 4% from a year ago, due to lower customer accounts and usage. Quarterly natural gas volumes decreased 16% year-on-year following lower demand from power generators.
“This is a solid 4Q result for APLNG however the trajectory of energy markets sales may be of some concern,” RBC analysts said in a note after the result.
Origin said corporate costs in fiscal 2019 would include a non-cash remediation provision increase of A$160 to A$180 million, for further assessment of work needed at a former gas works site in South Australia.
Reporting by Devika Syamnath in Bengaluru, additional reporting by Sonali Paul; editing by Richard Pullin