Origin flags lower FY27 production for APLNG, posts higher quarterly revenue (updated)

Origin Energy

31/07/2026 24:13

Higher oil prices expected to benefit FY27 earnings 
FY27 APLNG production seen between 625 and 670 PJ
FY27 APLNG capex and opex expected at A$3.0 bln-A$3.3 bln
Adds details and background throughout
July 31 (Reuters) - Origin Energy ORG.AX on Friday forecast lower production from the Australia Pacific LNG (APLNG) project in fiscal 2027, even as fourth-quarter revenue from its stake in the venture rose 3% sequentially on stronger sales volumes.
Revenue from APLNG, the Australian power producer's joint venture with ConocoPhillips COP.N and Sinopec 600028.SS, increased to A$497 million ($349.29 million) in the three months ended June 30 from A$481 million in the March quarter. 
Its production share was broadly flat, while total sales rose 4%. It realised $9.93 per metric million British thermal units, up from $9.51 in the third quarter.
APLNG is the largest producer of natural gas in eastern Australia and Origin has a 27.5% stake in it. 
Liquefied natural gas prices were volatile as the Iran war disrupted supplies and shipping through the key Strait of Hormuz, but the benefits have had a lagged effect on Origin due to its long-term export contracts.
"Given the lag in Australia Pacific LNG's long-term LNG export contracts, the higher oil prices since February are expected to be reflected in FY27," Origin CEO Frank Calabria said.
For fiscal 2026, APLNG produced 668 petajoules (PJ), but Origin expects output to decline to 625 PJ to 670 PJ in 2027, mainly because older gas fields are declining naturally.
Capital and operating expenditure is expected to increase to A$3.0 billion-A$3.3 billion as drilling activity ramps up.
The company said the additional spending was meant to support future production and that new drilling typically takes about two years to reach peak output.
Origin's results come as Australia tries to keep more gas on the east coast domestic market to avoid supply shortfalls and ease energy bills.
Shares of the company rose as much as 1.9% to A$10.860, hitting their highest level since July 2. 

($1 = 1.4229 Australian dollars)

 (Reporting by Roshan Thomas and Nikita Maria Jino in Bengaluru; Editing by Shilpi Majumdar and Subhranshu Sahu)
 ((Nikita.Jino@thomsonreuters.com;))