22/10/2020 - 11:00

Woodside revenue plunges $US465m

22/10/2020 - 11:00

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A lower oil price has cut Woodside Petroleum’s revenue by about 40 per cent, but the company is studying to lift planned capacity of its Scarborough LNG project.

Peter Coleman says operating performance at Woodside's LNG facilities has been strong. Photo: Attila Csaszar

A lower oil price has cut Woodside Petroleum’s revenue by about 40 per cent, but the company is studying to lift planned capacity of its Scarborough LNG project.

Woodside reported sales revenue of $US699 million ($A985 million) in the three months to September 30, down from $US768 million on the prior quarter and from $US1.164 billion in Q3 FY19.

Its revenue was impacted by lower realised LNG prices, chief executive Peter Coleman said.

He expects pricing in the fourth quarter and in Q1 2021 to be stronger, given an improvement in the oil price in recent months.

Woodside produced 25.3 million barrels of oil equivalent (MMboe) in the third quarter, down 2 per cent on the prior quarter but up slightly on Q3 FY19.

Production year-to-date is up 18 per cent, rising to 75.4MMboe.

Mr Coleman said performance at Woodside’s LNG facilities had been strong.

“Pluto again demonstrated high reliability, with LNG production climbing by nearly 4 per cent compared with the second quarter,” he said.

“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.”

Mr Coleman said Woodside had begun studies for potentially increasing the upstream processing capacity at its delayed Scarborough gas project in Western Australia by about 20 per cent.

The company had also delayed its Browse gas project earlier in the year, as well as reduced spending by $3.5 billion and put some exploration plans on hold.

More recently, Woodside completed an organisational review and confirmed it would axe around 300 direct staff to manage “challenging times”.

The company in the September quarter also struck a deal with Capricorn Senegal to raise its stake in the Sangomar oil project.

The additional project interest is expected to increase 2P reserves by about 68MMboe, Mr Coleman said. Project execution activities remain on schedule.

Woodside shares were down 1.8 per cent at 1:31pm AEDT to trade at $18.24.

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