Woodside shakes off woes
Woodside shares rose last week on a firming oil price and a positive third quarter report, which included record production at its Pluto liquefied natural gas project and Karratha Gas Plant.
The company lifted production by 13.5 per cent on the previous quarter to 25.2 million barrels of oil equivalent and raised sales revenue by 19.8 per cent to $988 million.
But compared with the previous corresponding period, the figures were down 0.4 and 9 per cent respectively.
The company attributed the higher production figure to excellent production performance across all assets, the resumption of full production at its North West Shelf facilities and the restarting of production at the Okha floating production, storage and offloading facility.
Woodside chief executive Peter Coleman said the company maintained exceptional operational performance during the quarter.
“We set a number of production records this quarter, driven by excellent LNG capacity and reliability, which contributed to a 20 per cent quarter-on-quarter revenue increase,” he said.
“As part of managing our debt obligations, we secured $US1.2 billion ($1.58 billion) in funding at competitive rates.
“We have strong support from debt capital markets and gearing remains well within our target range of 10 to 30 per cent.
“The agreements to acquire ConocoPhillips’ interests in Senegal and half of BHP Billiton’s interests in the Scarborough area demonstrate Woodside’s focus on growth and leverage our deepwater capabilities.
“The Julimar project completed all construction and commissioning work on schedule and under budget in preparation for Wheatstone start-up in mid-2017.
“Wheatstone is a key component of our near-term growth strategy and will contribute over 13 million barrels of oil equivalent of annual production once both trains are fully operational.”
The company narrowed its fullyear production guidance to 92 million to 95 million barrels of oil equivalent. The company said fullyear 2017 production guidance would be given in its fourth quarter report.
On Monday morning, Brent crude was trading at $US51.60 a barrel, a rise of more than 7 per cent since the start of the year.
Woodside shares were trading at $29.13 on Monday morning, up from a low this year of $25.77 on June 24.