Origin Energy (ASX:ORG)’s Q3 revenue contradicts production volumesCraig Foley
Power supplier Origin Energy (ASX:ORG) has reported a 4 per cent decline to 65.4 petajoules in integrated gas production in the first 3 months of 2021, as compared to the previous quarter.
The ASX-listed energy player has attributed the fall to scheduled maintenance routines at gas production sites.
As a result, Origin’s sales division witnessed a 27 per cent drop year on year in gas sales for the March quarter, while Fy21’s Q3 electricity sales performance slipped 4 per cent from the same period last year.
The company has highlighted that the drop in production and sales does not reflect the company’s quarterly revenue. Origin’s CEO Frank Calabria has cited higher realised prices as the cause of a rise in revenue for the quarter.
The company has also suggested potential upside in the coming time, as the company is tipped to meet its retail cost savings guidance of $100 million. Moreover, Australia Pacific LNG is scheduled to deliver its 600th cargo to contract customers.
The company explained, “Due to the lag in the LNG contracts, we expect recent higher oil prices to flow through to contract revenues in the 2022 financial year.”
Shares in Origin Energy (ASX:ORG) last traded at $4.11
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Source: Finance News Network