Oil price slump takes toll on Woodside as profit tumbles 99%
JOHANNESBURG (miningweekly.com) – Australia’s largest independent oil and gas company Woodside Petroleum on Wednesday posted a steep fall in full-year profit, despite achieving its second-highest production result.
After-tax net profit for 2015 reduced by 99% to $26-million, from $2.4-billion in 2014, driven by a sharp fall in commodity prices and asset impairments.
The company booked asset impairment charges of $1.08-billion in 2015, an increase on the $434-million reported in 2014, owing to the lowering of short- and long-term oil price assumptions. Woodside reduced its long-term pricing assumption by about 20%.
Prior to the deduction of one-off noncash items, the oil and gas producer’s 2015 statutory net profit after tax was $1.13-billion.
Revenue decreased by 36% year-on-year to $4.5-billion in the 12-month period, mainly a result of a 46% decrease in oil prices in the year.
Production dipped to 92.2-million barrels of oil equivalent, from its previous record of 95.1-million barrels of oil equivalent in 2014. Lower volumes reduced revenue by about $120-million.
Nevertheless, Woodside CEO Peter Coleman stated that the company was “well positioned to withstand the commodity cycle”.
He pointed out that Woodside’s cost of production was low. The company achieved an overall 8% year-on-year decrease in unit production costs in 2015, with a 7% decrease in gas unit costs and a 17% decrease in oil production unit costs. Since 2013, the total production cost had reduced by 14%.
Woodside’s production guidance for 2016 is between 86-million barrels of oil equivalent and 93-million barrels of oil equivalent.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
