Rev­enue bat­tered

Pilbara News - - PILBARA NEWS - Stu­art McKin­non

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.”

Pic­ture: Tom Zaun­mayr

Woodside's North West Shelf joint ven­ture.

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