Net profit masks stellar year for Woodside

A slightly lower $1.1 billion dollar annual profit has masked another excellent year for Woodside Petroleum Ltd, Australia's largest oil and gas producer.
Despite an after tax net profit for the December 2005 year down 3.4 per cent to $1,107.4 million, a result affected by a number of issues, shareholders will reap a record total 2005 dividend of 93 cent a share fully franked.
Record revenue, net operating cash flow and underlying net profit for the year saw the company announce a final dividend of 58c fully franked, taking the year total to 93c, up 58 per cent of 2004's 59c.
Woodside's latest bottom line was impacted by the $17.8 million sale of its interests in the Blacktip gas project and $52 million from the sale of its stake in Hardman Resources Ltd.
Under new international financial reporting standards (AIFRS), the 2004 net profit was lifted from $1,083 million to $1,146.4 million, a result already boosted by the $473 million sale of 40 per cent of its Enfield oil project.
Woodside's record underlying net profit after tax for 2005 was $1,037.7 million, up 54.5 per cent on the previous year's $671.8 million, with revenue up 29.3 per cent to $2,747 million.
The jump in the underlying net profit was delivered by higher product prices and better production, which reached 59.7 million barrels of oil equivalent (Mmboe).
The company said it was targeting a 27 per cent increase in 2006 to 76 Mmboe.
Domestic gas and liquefied natural gas (LNG) sales accounted for the majority of the company's record revenue -- $959.7 million, up 31.6 per cent, while condensate contributed $671.1 million.
Woodside has planned record capital expenditure in 2006 of more than $2.3 billion for exploration and project development, while the exploration budget is up 40 per cent to $507 million.