Australia's Origin Energy targets APLNG cost cuts; reaffirms forecast
(Reuters) — Australia’s Origin Energy Ltd said on Tuesday it is targeting cost reductions at its Australia Pacific LNG (APLNG) LNG project as it looks to lower its debt.
The country’s top power and gas retailer said it will seek to reduce capital and operating expenditure by more than $380 MM/yr over 18 mos at the project, and will then target further cost cuts.
Australia Pacific LNG (APLNG) is a JV between Origin Energy, US giant ConocoPhillips and China Petroleum & Chemical Corp (Sinopec).
Origin also said that APLNG is complete and is “exceeding performance expectations” as it reiterated the project’s full-year 2018 guidance.
The Sydney-based company took on additional debt to build APLNG, which it said it would be trimmed to below A$7 B by the end of fiscal 2018.
Origin also reaffirmed its full-year earnings guidance.
The company’s shares rose 2.4% in early trade on Tuesday, while the benchmark S&P/ASX 200 index was up 0.2%.
Reporting by Aditya Soni in Bengaluru; editing by Richard Pullin
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