Woodside’s Q1 revenue slips, production up

Australia’s Woodside Petroleum saw its revenue slip in the first quarter of the year.

The LNG major reported sales revenue of $1.07 billion for the quarter under review. This is 21.1 per cent below the $1.36 billion from the corresponding quarter in 2019. It is also 23.6 per cent below the $1.40 billion in sales revenue from the previous quarter.

The production for the quarter reached 24.2 mmboe, 12 percent higher than the corresponding period last year.

Woodside CEO Peter Coleman said the production was up despite cyclone activity and COVID-19 impacts.

“Tropical Cyclone Damien, which crossed the Western Australian coast in February, was the most significant weather event ever to pass over Woodside’s production facilities on the Burrup Peninsula”, Coleman said.

“Nevertheless, revenue for the quarter was impacted by reduced trading activity and lower realised prices due to COVID-19 and an unprecedented combination of oversupply and short-term demand destruction”, he added.

As a result, Woodside slashed its 2020 spending by 50 per cent and delayed final investment decision on its Scarborough and Pluto LNG Train 2 developments.

Coleman added that the company has taken FID on a number of projects during the quarter. These projects include Sangomar field Phase 1 in Senegal and the North West Shelf’s Greater Western Flank Phase 3. The company also progressed the execution of Pyxis Hub and Julimar-Brunello Phase 2 projects.

Woodside expects its expenditure for 2020 to be approximately $2,4 billion.

Woodside’s revised investment expenditure guidance for 2020 is $1.7 – 1.9 billion. Woodside’s production guidance remains unchanged at 97 – 103 mmboe.

Woodside scheduled maintenance works at the North West Shelf LNG facility’s Train 3 for September 2020. The company deferred the NWS LNG Train 4 turnaround to August 2021.