Quarterly Report Highlights - March 2024

Origin Energy Limited (ASX: ORG) has published its comprehensive performance report for the quarter ending March 31, 2024, detailing significant activities across its Integrated Gas, Energy Markets, and Octopus Energy segments.

Integrated Gas Performance

• Revenue Increase: The Australia Pacific LNG segment saw a 7% increase in revenue from the previous quarter, totaling AU$2,553 million. This increase was attributed to both higher production volumes and prices. However, the FY2024 revenue to date has decreased by 16% compared to FY2023, mainly due to lower oil prices and domestic contract prices.
• Production Growth: Production rose by 5% compared to the previous quarter, overcoming challenges such as the unplanned turndown in November 2023 when an LNG vessel lost power. Annual production up to this point in FY2024 has grown by 4%, bolstered by the activation of additional wells and enhanced field optimization.
• Price Adjustments: The realized average LNG price was US$12.17/mmbtu, with the domestic price at AU$6.90/GJ.

Energy Markets Developments

• Electricity and Gas Sales: Electricity sales remained stable due to increased demand influenced by warmer weather, offset by a rise in solar adoption and energy efficiency among households. Conversely, gas sales volumes dropped by 14% owing to the same climatic conditions and reduced business volumes.
• Strategic Acquisitions and Agreements: Significant strides included acquiring renewable energy developer Walcha Energy and signing agreements for a major wind farm project and a substantial battery storage project, signaling a strong move towards renewable energy adoption.
• Infrastructure Innovations: Notable advancements in energy storage were highlighted, such as the signing of an offtake agreement for the Supernode battery project, set to be operational by the second half of 2026.

Octopus Energy Expansion

• Capital Investment: Origin increased its investment in Octopus Energy by approximately AU$530 million, raising its stake to about 23%. This strategic move coincides with Octopus Energy's robust customer growth and the successful migration of 1.3 million Shell customers within an unprecedented timeframe.

CEO's Outlook

Origin's CEO, Frank Calabria, expressed satisfaction with the operational performance of the Australia Pacific LNG and highlighted the strategic expansions in the Energy Markets segment. The acquisition of Yanco Delta and other renewable projects underscores Origin's commitment to bolstering its renewable energy portfolio. The ongoing development of large-scale batteries at strategic locations, coupled with the new storage capabilities, are expected to significantly enhance Origin’s energy storage capacity to about 1 GW upon completion.

Forward-Looking Statements

In conclusion, Origin Energy is navigating a transformative phase, emphasizing renewable energy initiatives and robust infrastructural developments to stay ahead in a dynamic market. The company remains in discussions with the NSW Government regarding the future closure of the Eraring Power Station, reflecting its strategic pivot towards more sustainable energy solutions.

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