Woodside's 1H 2015 Net Profit After Tax Falls 39% to $679M on Lower Revenue

Australia's Woodside Petroleum Ltd. recorded a net profit after tax of $679 million for the first half of 2015 (1H 2015), down 39 percent from last year's $1.105 billion as operating revenue shrank, according to financial results released by the company Wednesday.

During this period, operating revenue fell 28 percent to $2.556 billion, with Woodside attributing the decline to lower commodity prices and to a lesser extent reduced sales volumes, caused largely by the scheduled turnaround work at Pluto gas field. As a result of the Pluto turnaround, Woodside's production in 1H 2015 fell to 42 million barrels of oil equivalent (MMboe), down 9.7 percent from the previous year's 46.5 MMboe.

“Our half-year profit is down 39 percent on the same period last year as a direct result of the fall in oil price over the period,” Woodside CEO Peter Coleman said in the announcement.

The company is however keeping its 2015 production target range unchanged at 86 to 94 MMboe.

Turning to its key business activities, Woodside reported that the Browse Joint Venture participants agreed to enter the front-end engineering and design (FEED) phase for the proposed floating liquefied natural gas (FLNG) development ahead of a final investment decision (FID) in 2H 2016.

The company's completion of its interests in the Wheatstone LNG, Kitimat LNG and Balnaves oil projects in April increased its reserves and resources. Woodside's Proved (1P) Developed and Undeveloped reserves rose 18.3 percent or 191.8 MMboe, while Proved plus Probable (2P) Developed and Undeveloped reserves were up 19.5 percent or 260.9 MMboe and Contingent resources (2C) grew 15 percent or 2,632.0 MMboe.

“We have achieved some significant milestones this year which are part of our strategy to transform the business. With the purchase of interests in Wheatstone, Balnaves and Kitimat we have substantially increased our reserves and production capacity while de-risking our future growth. The recent decision to move to FEED on Browse is a significant step towards developing this world class resource.” Coleman commented.


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