PERTH (miningweekly.com) – Energy major Origin Energy has swung into profit for the financial year ended June, following a full year of operations from both the liquefied natural gas (LNG) trains at its Australia Pacific LNG operation, as well as higher commodity prices.
Statutory profit for the full year to June was reported at A$218-million, compared with a statutory loss of A$2.2-billion in the previous financial year.
Underlying profits for the same period was up from A$400-million to A$838-million, while underlying earnings before interest, tax, depreciation and amortisation (Ebitda) was up from A$2.17-billion to A$2.9-billion.
“We had a strong performance across the board this year, with earnings growth in both integrated gas and energy markets driving increases in underlying Ebitda and underlying profit,” said Origin CEO Frank Calabria.
“Operating cash flows increased and we also met our target to materially reduce debt, paying down A$1.6-billion on the back of the Lattice Energy and Acumen sales with adjusted net debt now sitting at just below A$6.5-billion.”
Calabria said that after a period of significant capital investment, the integrated gas unit was making a material contribution to Origin, driven by a full year of operations from both LNG trains at APLNG, and higher commodity prices.
APLNG produced a record 676 PJ of LNG during the full year, up 11% on the 2017 financial year. In 2019, the project is forecast to produce between 660 PJ and 690 PJ.
“This year, APLNG also hit the milestone of delivering net cash flows back to Origin of A$363-million,” Calabria said.
He noted that growth in the energy markets division was driven by Origin’s power generation portfolio, which lifted output by 14% and benefited from higher wholesale prices, as well as higher natural gas sales, although this was partly offset by higher operating costs associated with a very competitive retail market.
Looking ahead, Origin is planning to spend between A$385-million and A$445-million, excluding expenditure on the APLNG, with between A$105-million and A$125-million of this spending going towards growth projects.