Origin lifts revenue 40pc, slashes 650 jobs
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.