Woodside CEO Peter Coleman
JOHANNESBURG (miningweekly.com) – Lower oil prices have resulted in Australian oil and gas major Woodside reporting an 8.1% year-on-year decrease in sales revenue, despite increasing its production and sales volumes.
Woodside produced 22.2-million barrels of oil equivalent in the June quarter, a 10% increase on the 20.1-million produced in the same period of 2015, and sold 21.1-million barrels of oil equivalent, 8% more than the 19.5-million barrels sold in the second quarter last year.
Sales revenue of $258-million is down on the $898-million in the corresponding period of 2015.
Compared with the first-quarter of 2016, the second quarter sales revenue decreased by 16%, while sales decreased by 12.8% quarter-on-quarter and production decreased by 6.3% quarter-on-quarter.
“Lower sales revenue for the quarter largely reflects the three-month lag in oil-linked liquefied natural gas (LNG) contract pricing structures. We will see higher realised LNG contract prices reflected in the third quarter,” CEO Peter Coleman said on Thursday.
Relative to the first quarter, the June quarter’s production and sales volumes were lower owing to reduced North West Shelf (NWS) LNG production, resulting from a planned turnaround campaign across the NWS facilities. The lower volumes were partially offset by higher production at Pluto LNG.
Coleman reported that the NWS Train 4 turnaround was completed eight days ahead of schedule.