Australia’s power and gas retailer, Origin Energy, swung to a profit for the financial year of 2018, benefiting from a full year of operations from APLNG’s two liquefaction trains and higher commodity prices.
The company reported a profit of A$218 million ($158.4 million) for the financial year 2018 compared to a loss of A$2.23 billion in FY2017.
Origin’s CEO, Frank Calabria, said, “we had strong performance across the board this year.”
“After a period of significant capital investment, Integrated Gas is making a material contribution to Origin, driven by a full year of operations from both LNG trains at Australia Pacific LNG and higher commodity prices. This year Australia Pacific LNG also hit the milestone of delivering net cash flows back to Origin of $363 million,” Calabria said.
Its Integrated Gas business reported a 67 percent rise in its underlying earnings before interest, taxes, depreciation and amortization (EBITDA) to A$1.25 billion.
This was underpinned by record production at Australia Pacific LNG of 676 PJ (254 PJ Origin’s share), up 11 percent on FY2017, and a recovery in commodity prices.
During the period under review, Australia Pacific LNG shipped 125 cargoes, meeting its export contract commitments while supplying close to 30 percent of east coast domestic demand for natural gas in 2018.
Calabria noted that the company has managed to cuts its adjusted net debt to A$6.5 billion.
Going forward, Origin expects its underlying profit to be higher while achieving further debt reduction in the financial year 2019.
The company noted that the Australia Pacific LNG is targeting operating breakeven of $22-26/boe and a distribution breakeven of $39.44/boe in FY2019.
Capital expenditure excluding Australia Pacific LNG is expected to be $385-445 million, comprising appraisal of the Beetaloo Basin resource, Ironbark and Power of Choice metering reforms.