What’s driving the Origin Energy share price?
In Origin’s integrated gas segment, the company reported record quarterly production by Australia Pacific LNG for the period ended 31 December 2020 (Q4 2020). Australia Pacific LNG production climbed 6% from the September quarter due to heightened market demand and completion of planned maintenance.
Commodity revenue jumped 6% during the quarter with higher volumes offsetting lower realised contracted LNG prices. Sales volumes increased 12% with Origin drawing down on LNG inventory.
The Origin Energy share price has been under pressure in the last year, falling 41.7% lower to $4.86 per share. Despite that, shares in the Aussie generator and retailer or “gentailer” are climbing in early trade, up 0.41% at the time of writing.
Origin reported a realised gas price of A$6.17 per gigajoule for the December quarter. That includes an average LNG price of US$5.20 per million British Thermal Units (mmbtu). Origin’s average domestic price came in at A$4.40 per gigajoule.
Origin also provided an update on its Energy Markets segment for Q4 2020. Electricity volumes fell 4% lower compared to the December 2019 quarter. Retail volumes fell 5% due to milder weather and lower small business customer numbers with business volumes down 3% due to COVID-19 impacts.
Gas sales volume rose 1% on Q4 2019 volumes with a 16% increase in the business segment offsetting a 6% decline in retail. Gas used in generation slumped 29% compared to Q4 2019 figures due to the coronavirus pandemic impact on demand.
The Origin Energy share price is climbing higher on this morning’s update. That includes Origin tipping in an additional $65 million in Octopus Energy to maintain its 20% equity interest in the UK-based electricity and gas supplier.
Octopus is launching into the Japanese market via partnership with Tokyo Gas, with Origin boosting its investment to maintain its ownership level.
How is the market performing today?
The S&P/ASX 200 Index (ASX: XJO) has jumped higher in early trade to pare back some of yesterday’s losses. The benchmark Aussie index closed down 2.0% yesterday in the worst session since September 2020.