Woodside Petroleum’s production, sales and revenue all fell in the second quarter compared to the first.
Sales revenue was off 16 per cent to $US825 million on a 12.8 per cent drop in sales to 21.1 million barrels of oil equivalent and a 6.3 per cent fall in production to 22.2 million barrels of oil equivalent.
However, the company attributed the lower sales revenue for the quarter to a three-month lag in oil-linked LNG contract pricing structures.
Second quarter production and sales were up on the previous corresponding quarter by 10.4 per cent and 8.2 per cent respectively, but lower prices meant sales revenue was down 8.1 per cent on the previous corresponding quarter.
Chief executive Peter Coleman said the business was performing well in a challenging external environment.
“We continue to deliver worldclass operational excellence across our assets,” he said.
“This includes completing the North West Shelf train 4 turnaround eight days ahead of schedule and making further improvements to annualised loaded LNG production at Pluto.
“On Greater Enfield we revamped the development concept and took advantage of market conditions to take a final investment decision and estimate incremental cash costs of less than $US6 per barrel on average for the first five years of production.”
Mr Coleman said lower sales revenue for the quarter largely reflected the three-month lag in oil-linked LNG contract pricing structures.
“We will see higher realised LNG contract prices reflected in the third quarter,” he said.
“Our strong operating cash flow and balance sheet will continue to support business growth opportunities.”
Woodside's North West Shelf joint venture.