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UPDATE 1-Australia's Origin Energy APLNG revenue falls as COVID-19 hits demand

Published 31/07/2020, 09:39 am
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(Adds CEO comment, details, 2020 revenue figures)

July 31 (Reuters) - Power and gas retailer Origin Energy ORG.AX said on Friday fourth-quarter revenue from its share in the Australia Pacific LNG (APLNG) project fell 5.2% as coronavirus-related disruptions hit demand and hurt prices.

Like energy companies across the globe, Origin has struggled with a drop in oil prices and took a one-off charge this month of around A$1.2 billion. pandemic has hit demand for natural gas and electricity, Chief Executive Officer Frank Calabria said in a statement, adding that some residential and small- to medium-enterprise customers are facing financial difficulties.

The company has, therefore, decided to waive late payment fees until Oct. 31, Calabria added.

The APLNG project raked in revenue of A$610.2 million ($438.9 million) in the quarter, compared with A$643.4 million a year earlier. Production rose marginally to 64.5 petajoules (PJ) from 64 PJ.

APLNG, a joint venture with U.S.-based ConocoPhillips (NYSE:COP) COP.N and China's Sinopec 600028.SS , delivered record production of 265.3 PJ in 2020, Origin said.

However, full-year revenue declined 5% as increased production was offset by fewer purchases, a higher proportion of spot LNG sales and lower domestic prices.

Meanwhile, Origin's electricity sales in its energy markets division were 7.8 terawatt-hour (TWh), down from 8.7 TWh last year.

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