https://www.miningweekly.com

Woodside says $1.7bn profit in line with expectations

Woodside says $1.7bn profit in line with expectations

Photo by Bloomberg

19th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – A record production result from Australian oil and gas producer Woodside has helped the company achieve its second highest profit in its history.

Net profit after tax of $1.7-billion was in line with expectations, CEO Peter Coleman reported on Wednesday.

The profit compared with the $2.9-billion reported during the 2012 financial year, but Coleman pointed out that those figures had been enhanced by the partial sale of a stake in the Browse liquefied natural gas (LNG) project.

For 2013, Woodside’s production reached a record 87-million barrels of oil equivalent, up 2.5% on the previous year, as its Pluto LNG operation reported its first full year of production.

The record production delivered sales revenue of $5.7-billion during the year, which was 7.2% lower than the 2012 revenue owing to lower oil volume sales as a result of the Vincent project being off station for 11 months, and the natural field decline of the company’s late life oil assets.

Production costs were also higher, with gas unit production costs increasing to 10% on the back of the Pluto LNG start, and oil unit costs increasing owing to the Vincent refurbishments.

Coleman pointed out that despite the change in product mix, Woodside had achieved healthy margins for 2013.

“Underlying profit had been impacted by a higher proportion of lower priced gas volumes, which saw a decline in average realised pricing. Impairments to some mature oil assets also affected the results,” he noted.

However, he pointed out that in 2013, Woodside made disciplined investment decisions, including its decision not to proceed with the James Price Point development concept for Browse, as it did not meet the company’s commercial requirements for a positive investment decision.

Looking forward, Coleman reaffirmed the company’s 2014 production target range of between 86-million and 93-million barrels of oil equivalent.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 
SafeQuip
SafeQuip

SafeQuip is a leading distributor and manufacturer of fire safety solutions, offering a comprehensive range of products designed to meet all...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.048 0.891s - 128pq - 2rq
Subscribe Now