Origin Energy Limited reported consolidated production and earnings results for the second quarter and first half ended December 31, 2017. For the quarter, production of 83.5 PJe was 3.4 PJe or 4% higher than the December 2016 quarter of 80.1 PJe for the quarter ended December 2016, primarily due to increased volumes from APLNG (7.4 PJe) with two LNG trains on line and higher volumes in the Bass Basin (1.1 PJe) with the Yolla compressor on line, offset by decreased production at Otway (5.8 PJe) due to lower plant availability as a result of a planned shutdown and lower customer nominations.

For the first half, production of 172.6 PJe was 18.3 PJe or 12% higher than the prior comparable period primarily due to increases from APLNG (16.7 PJe) with two LNG trains on line and increased production at Bass Basin (1.1 PJe) with the Yolla compressor on line.

For the quarter, the company reported revenue was AUD 686 million against AUD 544.3 million a year ago.

For the first half, the company reported Loss before income tax was AUD 223 million compared to AUD 1,435 million a year ago. Loss from the continuing operations was AUD 135 million compared to AUD 1,377 million a year ago. Loss for the period attributable to members of the parent entity was AUD 207 million compared to AUD 1,559 million a year ago, driven by impairment charges after tax of AUD 533 million. Loss for the period was AUD 206 million compared to AUD 1,558 million a year ago. Loss per basic and diluted share was AUD 11.8 cents compared to AUD 88.9 cents a year ago. Loss for the period from continuing operations attributable to members of the parent entity was AUD 136 million compared to AUD 1,378 million a year ago. Loss per basic and diluted share from continuing operations was AUD 7.8 cents compared to AUD 78.6 cents a year ago. Net cash from operating activities was AUD 669 million compared to AUD 495 million a year ago. Acquisition of PPE was AUD 138 million against AUD 236 million a year ago. Acquisition of exploration and development assets was AUD 27 million compared to AUD 22 million a year ago. Acquisition of other assets was AUD 50 million compared to AUD 23 million a year ago. Underlying EBITDA was AUD 1,492 million compared to AUD 990 million a year ago. Underlying EBIT was AUD 723 million compared to AUD 423 million a year ago. Underlying profit before income tax and non-controlling interests was AUD 583 million compared to AUD 289 million a year ago. Underlying profit was AUD 582 million or 33.0 cents per diluted share compared to AUD 184 million or 10.5 cents per diluted share a year ago. Underlying profit from continuing operations was AUD 428 million or 24.3 cents per share compared to AUD 173 million or 9.9 cents per share a year ago. Operating cash flow from continuing operations was AUD 552 million against AUD 386 million a year ago. Revenue was AUD 7,262 million against AUD 6,085 million a year ago. EBITDA was AUD 667 million compared to loss of AUD 1,218 million a year ago. LBIT was AUD 105 million compared to AUD 1,476 million a year ago. Adjusted net debt was AUD 7,887 million against AUD 8,111 million a year ago. Capital expenditure was AUD 138 million against AUD 185 million a year ago. Sales revenue for the half year to 31 December 2017 increased by AUD 391 million to AUD 1,365 million, an improvement of 40%, compared to AUD 973.9 million in the same period in 2016. This increase is a result of both increased LNG sales and higher average prices realised across all products.

For the year 2018, the company expects underlying EBITDA to be in the range of AUD 1.78 to AUD 1.85 billion, compared to previous guidance of AUD 1.7 to AUD 1.8 billion. The change has been driven by increased generation output at Eraring and improvements in natural gas volumes and margins, partially offset by increased pressure on operating costs in a highly competitive market. Origin has reaffirmed guidance for its share of Australia Pacific LNG production, which is expected to be 245 to 265 PJ. Australia Pacific LNG is focused on achieving a step change reduction in its cost base and break-even within 18 months, as it aims to become a globally competitive, low cost gas producer. In full year 2018, Australia Pacific LNG is expected to be cash flow break-even at around AUD 45/boe2, compared to previous guidance of AUD 48/boe with the reduction primarily driven by revised non-operated development activity, deferral of some exploration activity and higher spot LNG and domestic revenues. Capital expenditure (excluding Lattice Energy) is expected to be AUD 360 to AUD 420 million. Following the successful divestment of Lattice Energy, Origin remains on track to reduce net debt to below AUD 7 billion by the end of full year 2018.