APA revises earnings on Orbost delay

PIPELINER APA, which is to operate the Orbost gas plant, has lowered earnings guidance thanks to start up delays related to the COVID-19 pandemic.
APA revises earnings on Orbost delay APA revises earnings on Orbost delay APA revises earnings on Orbost delay APA revises earnings on Orbost delay APA revises earnings on Orbost delay

Cooper's Sole gas project, destined for delayed Orbost gas plant

Helen Clark

Editor

 
 
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It said it has not completed the performance test required to meet commercial operations under the agreement it has with Cooper Energy, which is sending its offshore Gippsland Basin Sole gas to the plant. 
 
Revenues have been delayed meaning it has updated EBITDA guidance for financial 2020, dropping its guidance from $1.66 billion - $1.69 billion to $1.635 billion -  $1.65 billion. 
 
This is after saying in mid-February as part of its six month earnings that it expected to hit the lower range of earnings guidance for full financial 2020 thanks to the three month delay at Orbost.  
 
The original start up date was last year but was delayed to March. 
 
APA said it is working to increase production from current levels of 40 terajoules per day to nameplate capacity of 68TJ/d.
 
When fully up and running Sole and the processing plant will see Cooper's production rise fourfold.  
 
APA said the Orbost gas plant's designed is based on proprietary technology to remove the highly toxic hydrogen sulphide and that it is working with the providers of this tech to increase production as soon as practicable. 
 
"APA's focus continues to be on to ensure that the Orbost gas plant is commissioned safely and to a high standard and quality and operating performance," CEO and managing director Rob Wheals said. 
 
"APA's business, excluding the commercial impact from the delayed start of commercial operations at the Orbost gas plant continues to perform well and in line with expectations," he said. 
 
Total growth capital spend this financial year will be around A$250 million, below recent average annual run rates but "APA has visibility of as much as $1 billion of organic growth projects that remain in active discussions with customers for delivery over the next two to three years." 
 
It said there had been "no material impacts" to its ability to operate its assets or service its customers. 
 
It has put into operation its backup facilities in Brisbane and its Integrated Operations Centre is now working out of two premises, though infield operations are "business as usual" with travel altered for government requirements. 

 

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