Ori­gin lifts rev­enue 40pc, slashes 650 jobs

The Australian Energy Review - - NEWS - CAMERON DRUM­MOND QLD

A DAY af­ter it axed a third of its work­force, Ori­gin En­ergy has re­vealed a 40 per cent lift in first-half (H1) sales. Rev­enue for the six months to 31 De­cem­ber 2017 rose to $1.36 bil­lion from $973.9 mil­lion the pre­vi­ous cor­re­spond­ing pe­riod, af­ter lift­ing LNG out­put and charg­ing higher prices across its prod­ucts. Pro­duc­tion for H1 FY18 in­creased 12 per cent to 172.6 peta­joules equiv­a­lent (PJE), driven by a 15 per cent in­crease in pro­duc­tion from Aus­tralia Pa­cific LNG (APLNG). Pro­duc­tion from the De­cem­ber quar­ter was down 6 per cent on the Septem­ber quar­ter to 83.5 PJE re­flected by lower cus­tomer de­mand and main­te­nance at its pre­vi­ously-owned con­ven­tional oil and gas arm Lat­tice En­ergy’s op­er­a­tions in Ot­way, Vic­to­ria. Ori­gin sold Lat­tice to Beach En­ergy on 1 Feb­ru­ary for $1.6 bil­lion. “This rep­re­sents a sig­nif­i­cant mile­stone in de­liv­er­ing on our com­mit­ments to simplify the busi­ness, re­duce debt and im­prove re­turns,” Ori­gin chief ex­ec­u­tive Frank Cal­abria said. Mr Cal­abria said APLNG con­tin­ued to per­form well, de­liv­er­ing re­li­able up­stream and down­stream pro­duc­tion in the De­cem­ber quar­ter. “This is demon­strated by a to­tal of 35 LNG car­goes loaded and shipped from Cur­tis Is­land, with the mile­stone of our 200th LNG cargo suc­cess­fully loaded on 1 Jan­uary 2018,” Mr Cal­abria said. On 30 Jan­uary, Ori­gin an­nounced it planned to sack more than a third of its 1600 strong work­force in QLD, with most of the cuts at its Bris­bane head of­fice. Staff were in­formed by email that about 650 jobs would be cut this year, with 500 of those to lose their jobs by April. Ori­gin said the cuts were nec­es­sary to pro­tect against swings in com­mod­ity prices.

Im­age: Ori­gin En­ergy.

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