Origin shares rise as quarterly APLNG revenue jumps 34% on higher LNG prices (updated)

Origin Energy

29/10/2026 21:42

Origin's share of APLNG Q1 revenue up 34.2% QoQ
Shares close at 2-month high
Energy markets electricity sales volume rise 3% yoy
Updates throughout, adds analyst comments
By Shivangi  Lahiri and Shruti  Agarwal
Oct 30 (Reuters) - Shares of Origin Energy ORG.AX rose on Friday after the company posted a 34.2% sequential jump in first-quarter revenue from its stake in the Australia Pacific LNG project (APLNG), supported by higher realised LNG prices. 
LNG prices have surged since the prolonged Middle East conflict wiped out about 17% of export capacity at Qatar, the world's second-largest producer, tightening global supply. LNG/
The Australian energy producer realised $13.27 per million British thermal units for its LNG from APLNG during the quarter ended September 30, up 33.6% from the previous quarter. The APLNG project is a joint venture with ConocoPhillips COP.N and Sinopec 600028.SS. 
Stronger prices more than offset broadly stagnant volumes, with the company's production share from the project falling 1% sequentially to 44.8 petajoules, while total sales rose only 1%. 
     Revenue from APLNG rose 34.2% to A$667 million ($469.03 million) from the prior quarter. 
Origin's shares closed up 0.8% at A$12.23, their strongest level since August 19. The stock had hit a six-month high earlier in the session. 
Mark Elzayed, chief investment officer at Vestra Capital, said confidence in stronger near-term cash generation and optimism about summer electricity earnings were driving the rally. 
CEO Frank Calabria said Origin's gas generation assets were "well suited to support the market over the peak summer period" amid expectations of higher-than-average temperatures.
In its Energy Markets segment, electricity sales volumes rose 3% from a year earlier, which Origin attributed largely to data centre demand.
The Australian Energy Market Operator expects data centre electricity consumption in the national energy market to increase to around 13% of electricity supplied through the grid by 2035-36.
The company has been ramping up the deployment of grid-scale batteries to tap the data centre boom and said its Mortlake battery project in Victoria, which can store 650 megawatt-hours of energy, reached commercial operations during the quarter.
Vestra Capital's Elzayed said that the payoff from data centre demand hinges on ensuring reliable supply and the margin Origin is able to keep as "large volumes alone do not guarantee attractive profits." 


($1 = 1.4221 Australian dollars)

 (Reporting by Shivangi Lahiri and Jasmeen Ara Shaikh in Bengaluru; Editing by Shailesh Kuber and Sonia Cheema)
 ((JasmeenAraIslam.Shaikh@thomsonreuters.com;))