ORG Origin Energy Limited

   By Robb M. Stewart 
 

MELBOURNE, Australia--Origin Energy Ltd. (ORG.AU) recorded a surge in production in the last quarter as its gas-export plant on Australia's east coast started shipping cargoes, although revenue still fell as output at other operations declined.

Amid a wave of writedowns by Australian oil-and-gas producers, Origin said it was also reviewing the carrying values of its assets as it prepared its first-half financial statements. The company, one of Australia's largest energy generators and retailers, last week moved to reassure investors about its financial strength in the face of tumbling energy prices and a 54% share-price fall last year.

Production in the three months through December rose to 54.4 petajoules equivalent, a measure of the volume of different petroleum products based on energy content. That marked a 14% on-quarter rise and a 63% jump on the same period last year as the Australia Pacific LNG venture with ConocoPhillips (COP) and others begin shipping liquefied natural gas.

Still, the company said that was offset by a drop in sales volumes from the Kupe gas project in New Zealand due to maintenance and from fields in Australia's southern Otway and eastern Cooper Basin, as well as a fall in prices. That left revenue down 6% on-quarter and 12% on-year at 212.2 million Australian dollars (US$150.3 million), it said.

The APLNG operation began production last month and shipped three cargoes in January. It is one of three plants that have recently begun exporting LNG from Australia's Queensland state.

Last week, Managing Director Grant King said the company had more than A$6.5 billion in undrawn debt and cash, which could support the company's remaining contributions to the LNG project as it ramps up.

A string of Sydney-listed energy companies has warned of hefty impairment charges following last year's sharp fall in oil prices. AWE Ltd. (AWE.AU) on Friday said more charges were likely.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

January 28, 2016 19:29 ET (00:29 GMT)

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