Oz Woodside’s 2Q Sales Up on Year
Australian major Woodside Energy’s sales revenue surged year on year in the April-June quarter (2Q) as the company saw increased production following the start of operations at its second train at the Wheatstone project and higher prices, the company’s quarterly results showed July 19.
Woodside saw sales revenue of $1.08bn in 2Q, which is up 25% year on year and down 7% quarter on quarter, the results showed.
“Since starting up in June, Wheatstone Train 2 has achieved high production rates, building on the continuing operational success at Train 1. Output from Wheatstone, along with oil and gas from the Greater Enfield and Greater Western Flank Phase 2 developments, will contribute to targeted production of approximately 100mn barrels of oil equivalent in 2020,” Woodside CEO Peter Coleman said.
The company’s sales were 21.03mn boe in 2Q, up by 4% year on year and down 8% quarter on quarter, while production was 22.08mn boe, up 7% on year and fairly well level on quarter, the results showed.
Despite the lift in sales revenue, RBC Capital Markets analyst Ben Wilson said it was below the bank’s expectation of $1.16mn. The sales and production results were broadly in line with RBC’s forecasts of 21.5mn boe and 22.8mn boe, respectively.
“A solid quarter from Woodside with a little larger sales revenue miss (than production miss) attributable to an oil underlift and pricing redeterminations impacting [North West Shelf] received LNG pricing,” he said. Woodside’s average realised price for its products was $52/boe in 2Q, up 21% year on year and 2% compared with 1Q, the results showed.
The Western Australia-focused company sees production from its share of the North West Shelf, Pluto LNG, Australia Oil and Wheatstone LNG projects.
Woodside also gave some details of exploration wells. Among these, its Aung Siddhi-1 exploration well in Myanmar was completed in 2Q; the upper target intersected a 60 meter gross gas column, with an interpreted 10m of net gas pay, while the lower target intersected a 45m gross gas column, with an interpreted 16m of net gas pay; assessment is ongoing.
And in Australia, its Ferrand-1 exploration well, also completed in 2Q, intersected a 69m gross gas column; assessment is ongoing.