Origin (ASX:ORG) share price slides on mixed energy market sales

Investors don't appear very impressed with today's numbers…

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The Origin Energy Ltd (ASX: ORG) share price is trending downwards. The negative price movement comes after the energy company released its first-quarter update for FY22.

At the time of writing, shares in Origin are trading for $5.05 – down 1.37%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.66% lower.

Let's take a closer look.

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Why the Origin share price is dipping

In a statement to the ASX, Origin Energy gave an update on its trading and production levels.

  • Australia Pacific Liquified Natural Gas (APLNG) production and sales volumes for the quarter were stable compared to the June quarter "despite planned downstream shutdown during the period".
  • APLNG commodity revenue increased 25% on the prior quarter and 69% on the corresponding 2020 quarter, primarily driven by higher realised oil prices.
  • Electricity sales volumes were up 3% compared with the corresponding 2020 quarter. Retail volumes were "flat" with higher residential demand offset by lower usage due to solar and energy efficiency. However, natural gas sales were 7% lower.
  • There was a 6% increase in business volumes due to net customer wins, which "more than offset" COVID-related losses, according to the company.

These mixed results aren't impressing investors, at least judging by the falling Origin share price.

Management commentary

Origin CEO Frank Calabria said:

The rebound in global commodity prices drove a significant increase in revenue at Australia Pacific LNG for the quarter.

The announcement to sell a 10 per cent interest in Australia Pacific LNG represents an opportunity for Origin to crystalise some of the significant value we have created in this world-class asset, while retaining a substantial shareholding and our role as upstream operator.

In Energy Markets, our electricity volumes increased with net business customer wins and higher residential usage, offsetting lower demand from business and commercial customers due to a downturn in economic activity across many sectors.

Origin share price snapshot

Over the past 12 months, the Origin share price has increased 25.8%. Year-to-date, the company's shares appreciated only 4.7%.

Its 52-week high is $5.48 and its 52-week low is $3.87 per share.

Origin Energy has an approximate market capitalisation of $8.9 billion.

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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