Origin Energy's half-year oil and gas revenue has more than doubled, thanks to a sharp lift in production from its Australia Pacific liquefied natural gas (APLNG) project in Queensland and higher prices.
The energy producer and retailer reported sales of $973.9 million, up 123 per cent from a year ago. Production was up 51 per cent to 154.3 petajoules, helped by the ramp-up at APLNG, as well as the start of production from Halladale and Speculant in the Otway Basin in August.
December quarter production rose eight per cent on the September quarter, to 80.1 petjoules, while revenue for the three month period was 27 per cent higher at $544.3 million.
"Australia Pacific LNG was a major driver of the growth in revenue for the quarter, with the first cargo from Train 2 produced in early October 2016," Origin's integrated gas business chief executive David Baldwin said.
APLNG, in which Origin holds a 37.5 per cent stake, shipped a total of 26 cargoes during the December quarter. Origin also supplies gas from its coal seam wells to the Conoco Phillips-operated project.
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"We see this as a very positive result for Origin which sees the company well on track to meet or exceed E&P (exploration and production) business and APLNG guidance for FY17," RBC Capital Markets analyst Ben Wilson said in a note.
Tuesday's quarterly report only covers Origin's oil and gas production business. Details for its utilities business will be outlined in the half-year results on February 16.
The company in December said it plans to spin off its conventional oil and gas exploration assets - estimated to be worth at least $1.5 billion - in an effort to streamline its business and reduce debt.
The $26 billion APLNG project will, however, be retained within the parent company.
At 1102 AEDT, Origin Energy shares were down 2.7 per cent at $7.055 each, in a weak Australian market.
