Woodside’s Q3 revenue hurt by lower LNG prices

Australian energy giant Woodside reported a plunge in its third-quarter revenue due to lower realized LNG prices.

Woodside reported sales revenue of $699 million, 9 per cent down on the previous quarter and 42 per cent on the corresponding quarter last year.

Commenting on the results, Woodside CEO Peter Coleman noted the sales revenue, as expected, was impacted by lower realized LNG prices, reflecting the oil price lag in many of its contracts. Pricing in the fourth quarter and in the first quarter of 2021 is expected to be stronger given the improvement in oil price in recent months.

Woodside delivered the production of 25.3 mmboe, up 2 per cent from the third quarter of 2019.

Coleman noted that the year-to-date production of 75.4 MMboe was an increase of 18 per cent compared with the first three quarters of 2019.

Sales volumes increased by 10 per cent from the third quarter of 2019, reaching 26.7 mmboe.

Woodside noted the manufacturing activities for the Sangomar field development phase are progressing to plan in relation to the subsea production equipment, such as production and injection trees, subsea umbilicals, risers and flowlines.

To remind, Woodside executed a binding sale and purchase agreement to acquire Capricorn Senegal Limited’s entire participating interest in the Rufisque, Sangomar and Sangomar Deep (RSSD) joint venture.

“Woodside is increasing its stake in the Sangomar Field Development offshore Senegal and has executed a sale and purchase agreement with Capricorn Senegal Limited for its entire participating interest. The additional interest is expected to increase 2P reserves by approximately 68 MMboe. Delivery of project execution activities continued to plan,” Coleman said.

“Processing of new 3D seismic data of the Sangomar field is complete and early interpretation indicates significant seismic resolution improvement. This improved data quality provides additional confidence in the Phase 1 development and is likely to assist in derisking future development phases,” he said.

Woodside’s share of liquefied natural gas (LNG) production for the third quarter of 2020, reached 19.06 million boe, edging 1.45 per cent from the corresponding quarter in 2019.

Coleman noted the operating performance of its LNG facilities during the quarter was strong.

“Pluto again demonstrated high reliability, with LNG production climbing by nearly four percent compared with the second quarter.

“Planned maintenance at Karratha Gas Plant’s LNG Train 3 was completed on schedule with appropriate COVID-19 management, and the facility has now returned to full operating rates”, Coleman said.

LNG sales for the quarter reached 20.33 million boe rising 8.2 per cent up compared to the corresponding quarter last year.