Origin Energy has published its Quarterly Report for the period to 30 June 2020, covering the performance of its Integrated Gas and Energy Markets divisions.
Origin received record cash distributions from Australia Pacific LNG (APLNG) of $1,275 million in FY2020, at the top end of the guidance range and up from $974 million in FY2019.
APLNG delivered record production in FY2020 and reached the milestone of exporting its 500th cargo in June.
Full-year revenue declined 5 per cent with increased production offset by fewer purchases, gas inventory movements, a higher proportion of spot LNG sales and lower domestic prices.
June quarter production was down 3 per cent in response to lower demand as a result of the COVID-19 pandemic.
June quarter revenue declined 3 per cent due to fewer scheduled cargoes and lower spot LNG volumes, partially offset by increased domestic sales.
June quarter realised price was A$10.21/GJ, comprising an average LNG price (contracted and spot) of US$8.80/mmbtu (A$12.72/GJ) and an average domestic price of A$4.90/GJ.
FY2020 electricity volume was down 7 per cent across retail and business segments reflecting a combination of milder weather, solar and energy efficiency and COVID-19 impacts in the final quarter, as well lower SME and C&I customers.
FY2020 gas volume was down 4 per cent, with higher retail volume and gas to generation, more than offset by lower business volume due to roll-off of wholesale and C&I contracts.
Origin noted that June quarter movements in electricity and gas volumes reflect seasonality as well as the impacts of COVID-19 on demand.
Progress was reportedly made on implementing a new retail operating model in partnership with Octopus Energy. Development of the customised Kraken platform for Origin is progressing and preparations are underway to migrate the first cohort of customers by the end of the year. A small team has been seconded to Octopus to service its customers and gain experience with the Kraken platform ahead of the Australian deployment.
Origin CEO Frank Calabria said: “There were a number of highlights at APLNG this year, with record production, very high plant reliability and continued improvement in-field performance and reduction in capital and operating costs.”
“Origin also received record cash distributions from APLNG, demonstrating the value of this world-class asset to our business.”
“In retail, we were able to pass lower wholesale costs onto our customers, which contributed to lower prices for most customers in Queensland, South Australia, New South Wales and the Australian Capital Territory.”
Mr Calabria said the pandemic has impacted natural gas and electricity demand and some residential and small to medium enterprise customers are facing financial difficulties.
“Our focus has been on supporting customers, and we have extended our commitments not to disconnect those in financial distress and to waive late payment fees until 31 October,” he commented.
“We have also responded by reducing our operating costs and capital expenditure, to help minimise the impact of the pandemic on our business. As we continue to navigate these challenging times, we will be closely monitoring the impact on our business and responding accordingly.”
The full report can be found online here.