Origin Energy slips as revenue from Australia Pacific LNG project falls

Shares of Origin Energy dropped on Wednesday after the power producer logged a 10 per cent sequential fall in third-quarter revenue from its stake in the Australia Pacific LNG project (APLNG), pressured by weaker LNG volumes and prices.

Shares of the firm were down 1.6 per cent, as of 01:23 GMT, on track for their worst day since April 11, if losses hold.

LNG prices have stayed under pressure since early 2025, weighed down by subdued demand following a mild winter in Asia and increased production in the US.

"Production was slightly lower, reflecting fewer days than the prior quarter, lower performance across some operated and non-operated fields," Origin CEO Frank Calabria said, adding that tropical Cyclone Alfred impacted the LNG shipping schedules as well.

Origin realised $11.31 per million British thermal units (mmBtu) for its LNG product from the APLNG project in Queensland, compared with $12.20 per mmBtu in the second quarter.

"APLNG's weaker FY25 distributions to ORG may be perceived as a negative," Citi analysts said, and noted that quarterly revenue from APLNG was a six per cent miss against its forecast.

The company reported revenue from APLNG - a joint venture with US oil and gas major ConocoPhillips and Sinopec - of AU$616 million ($393 million) for the three-month period ended March 31, compared with AU$681 million seen in the December quarter.

Its production share from the project fell three per cent to 46 petajoules from the previous quarter, with total sales falling seven per cent sequentially.

(Reporting by Rajasik Mukherjee and Nikita Maria Jino in Bengaluru; Editing by Tasim Zahid and Sherry Jacob-Phillips)