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Australia’s Origin Energy, which is a shareholder in APLNG, said in its quarterly report that APLNG revenue dropped 20 percent year-on-year to approximately A$1.85 billion ($1.32 billion) in the March quarter.
APLNG revenue dropped 12 percent compared to A$2.10 billion in the prior quarter.
Revenue decreased 21 percent year-on-year to A$6.08 billon in the nine-month period ending March 31.
Compared to the previous quarter, APLNG LNG revenue was down 9 percent in the March quarter to $A1.75 billion, driven by lower sales volumes and lower average realized LNG price due to the recent appreciation in the AUD versus USD, while domestic revenue decreased 41 percent primarily driven by lower short-term contract volumes, according to Origin.
In the nine-month period, LNG revenue dropped to A$5.42 billion, driven by lower spot LNG volumes and lower LNG prices reflecting lower lagged oil and spot LNG prices as well as the completion of the price review with Sinopec effective January 1, 2025, it said.
Moreover, the LNG terminal shipped 35 LNG cargoes in the three-month period, up from 34 in the comparable quarter and down from 36 in the prior quarter.
The terminal shipped 102 LNG cargoes in the nine-month period, down from 104 cargoes in the comparable period.
The average realized price was at $9.51/MMBtu in the March quarter, down from $10.70/MMBtu in the comparable quarter and $9.55/MMBtu in the prior quarter.
In the nine-month period, the average realized price was $9.70/MMBtu, down from $11.63/MMBtu in the comparable period.
APLNG’s realized oil price in the March quarter, prior to Origin hedging, was $73/bbl, up from $72/bbl in the prior quarter and down from $80/bbl in the comparable quarter.
Given the lag in APLNG’s long-term LNG export contracts, Origin said the recent higher oil prices are expected to be realized in fiscal 2027.
APLNG is a joint venture between US-based ConocoPhillips (47.5 percent), Australia’s Origin Energy (27.5 percent), and Sinopec (25 percent).
Origin operates APLNG’s gas fields, upstream exploration, production and pipeline system, while ConocoPhillips operates the downstream LNG export facility and the LNG export sales business.
There are two 20-year LNG export offtake agreements in place, which run until the end of 2035. One is for 7.6 mtpa to Sinopec, and the other is for 1 mtpa to Japan’s Kansai Electric.