Origin Energy Ltd's stock plummeted 5.09% during intraday trading on Monday, marking a significant decline for the Australian energy producer.

The sharp drop followed the company's report of lower March quarter production and revenue from its flagship Australia Pacific LNG (APLNG) project. Origin reported quarterly production of 164.5 petajoules, down from 167.1 petajoules a year earlier, while APLNG revenue fell 9% sequentially to A$481 million due to lower realized LNG prices and reduced sales volumes.

Adding to investor concerns, Origin significantly downgraded its earnings guidance for renewable-energy startup Octopus Energy. The company now expects its share of Octopus's fiscal 2026 EBITDA to range between a loss of A$70 million and a profit of A$30 million, sharply below its previous forecast of breakeven to A$150 million profit. The downgrade was attributed to regulatory changes in the UK Energy Company Obligation scheme, higher gas capacity charges, and adverse weather conditions in February and March.

Market analysts noted that the near-term signals from the quarterly APLNG revenue drop in a volatile LNG environment clouded the outlook, despite the company's explanation that changes in oil prices have a lagged effect on its long-term export contracts and won't flow through to results until fiscal 2027.