Woodside Petroleum has posted a rise in annual net profit and says sales revenue was down on lower commodity prices despite a positive boost from foreign exchange movements.
Woodside Petroleum has posted a rise in annual net profit and says sales revenue was down on lower commodity prices despite a positive boost from foreign exchange movements.
Woodside chief executive Don Voelte also mentioned in a teleconference to journalists this morning that chief financial officer Mark Chatterji will leave the company at the end of the year to return to the United States.
The oil and gas major's net profit was $1.824 billion for 2009, up 2.1 per cent from $1.786 billion in calendar 2008.
The company said 2009 sales revenue of $4.352 billion stemmed from a record sales volume of 80.7 million barrels of oil equivalent (mmboe).
"The impact of lower commodity prices and the revaluation of our US dollar debt in a weaker US dollar environment had opposing but material outcomes on our 2009 financial results," Woodside said in a statement to the stock exchange today.
Lower oil prices in 2009 dragged revenue down $1.9 billion while the revaluation of US denominated debt resulted in a gain of $886 million.
Woodside says it expects a 2010 production range of 70 mmboe to 75 mmboe, following the divestment of its interest in the Otway Gas Project.
Woodside's board declared a final fully franked dividend of 55 cents per share, on par with the prior corresponding period.
This takes full year dividend to $1.10 per share, down from $1.35 in 2008.
Woodside managing director and chief executive Don Volte says there are signs that economies around the world are starting to expand again, led by resurgence in Asia.
"Oil prices have recovered from their lows in early 2009 and, despite current global economic conditions, the fundamental drivers for medium and long term LNG demand remain strong for both the Asia-Pacific and Atlantic basins," Mr Volte said.
"Recession-moderated forecasts still indicate that LNG demand will double through 2009 to 2020.
"Woodside's LNG portfolio provides a unique opportunity to deliver outstanding and sustained shareholder wealth.
Execution capabilities have now become paramount in delivering our LNG growth ambitions.
Woodside said it produced 80.9 mmboe during calendar 2009, down half a per cent from the record result for the previous year, and "despite all of our oil assets being in natural field decline".
Woodside said construction of its Pluto LNG project at Karratha in Western Australia was 83 complete at year end.
The company said it was on track for first gas production from Pluto by late 2010, with first LNG output to follow in early 2011 "contingent on a productive industrial relations environment".
This relates to recent strike action taken by workers at Pluto regarding accommodation arrangements.
"A risk mitigation plan is in place, if required, to ensure LNG delivery obligations are covered," Woodside said.
