(Reuters) - Australian electricity and gas retailer Origin Energy (ORG.AX) said on Friday quarterly revenue from its Australia Pacific LNG (APLNG) project fell 3%, hurt by weaker prices.
Liquefied natural gas (LNG) prices have been under pressure as the market is grappling with oversupply since several large scale projects came online last year.
LNG from Origin’s share at the APLNG project was sold at an average price of $9.38 per metric million British thermal unit (mmBtu) in the three months ended Dec. 31, lower than $10.59 a year earlier, the company said.
While weaker prices dented revenue from APLNG for the quarter, the biggest LNG producer in eastern Australia posted a record output of 67.6 petajoules (PJ), up 7% from a year earlier.
Origin, which owns a 37.5% stake in APLNG, increased its fiscal 2020 production guidance for the project to around 690 PJ to 710 PJ in November, compared to its earlier forecast of 680 PJ to 700 PJ. [nL3N27Z4LE]
Meanwhile, in light of the recent bushfires in the country, Origin CEO Frank Calabria said, “Despite the challenges posed by bushfires in recent weeks, our power stations are operating well and supplying the market as needed.”
The company’s energy markets business, which has been hit by stiff competition, posted a drop in volumes for the December quarter. The company also said its unit at Mortlake Power Station in Victoria had returned to service in late December.
APLNG brought in revenue of A$716.5 million ($490 million) in the quarter, compared with A$740.9 million a year earlier. (reut.rs/3aVphVN)
Reporting by Shreya Mariam Job in Bengaluru; Editing by Maju Samuel and Shinjini Ganguli