Woodside Profit Drops 50% on Low Energy Prices

Australia’s biggest oil and gas company, Woodside, has reported a 50% drop in profit in the first half of 2016 as energy prices remained depressed.

Net income fell to $340 million from $679 million a year ago, the Perth-based company said Friday in a statement. Revenue fell 22% to $1.9 billion.

It was able to inject greater efficiency in operations. Half-year unit production costs of $5.2/boe was 38% lower than 1H 2015. It announced an interim dividend of 34 cents, down from 66 cents a year ago.

Operational update

Production during the six months was 45.9 MMboe, 9% higher than a year ago period. Woodside raised 2016 production guidance to 90–95 mmboe, up from an earlier forecast of 86 to 93 mmboe.

Pluto LNG annualised production rate at 4.9 mtpa was 14% higher than expected capacity at time of FID.

The Wheatstone Project (Woodside 13%, non-operator) construction and commissioning activities are progressing consistent with previous guidance of first LNG from Train 1 mid-2017, the company said. First LNG production from Train 2 is expected 6-8 months later.