Origin Energy (ASX:ORG)
, in its quarterly report, has noted a slight comeback in commodity revenue, despite an overall 35 per cent decline in FY21. For the June quarter 2021, commodity revenue increased 19 per cent from the March quarter, driven by higher oil prices and domestic volumes.
For FY21, electricity sales were flat and gas sales decreased 9 per cent compared to FY2020. Decline in gas sales was primarily driven by expiration of business contracts as well as lower demand from gas-fired generation.
For the June quarter 2021, in comparison with June 2020, electricity sales increased 9 per cent, reflecting a recovery in business demand as well as cooler weather. Gas sales decreased 12 per cent, driven by expiration of business contracts and less gas directed to generation due to a planned outage.
Origin CEO Frank Calabria said, “higher realised commodity prices and higher domestic volumes drove a strong increase in Australia Pacific LNG revenue during the quarter, while the continued recovery in global oil demand has driven stronger JCC prices and we expect this to flow through to higher effective prices into FY2022."
Shares in Origin Energy (ASX:ORG)
are trading 8 per cent lower at $4.10.