Origin reports steady APLNG revenue

Origin said in its full-year report that this was partially offset by lower realized LNG prices and the reduction in revenue following completion of the price review with China’s Sinopec effective from January 2025, as well as lower domestic volumes delivered under short-term contracts.

APLNG revenue reached about A$9.95 billion ($6.5 billion) in the financial year. This compares to A$9.98 billion in the prior year.

According to Origin, APLNG’s total production of 682 PJ declined 2 percent in fiscal 2025.

This was mainly due to lower volumes at Condabri, Talinga, and Orana from cumulative impacts of turndown events including unplanned outages, lower than expected benefits from well optimization activities to manage natural field decline in some fields, and underperformance in some non-operated fields.

Production is expected to be 635 – 680 PJ in fiscal year 2026.

Origin said its underlying profit rose to A$1.49 billion, primarily due to a lower income tax expense as dividends from APLNG switched from partially to fully franked

Origin received A$797 million in fully franked dividends from APLNG, with a further A$335 million dividend received on July 3 relating to cash generated in fiscal 25.

This compares to largely unfranked distributions of A$1.38 million in fiscal 2024.

Origin also noted that its LNG trading activities have delivered “strong” earnings growth, with trading gains of A$441 million.

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.