Woodside Reports Record Full Year Profit (Australia)

Australia’s Woodside today reported a record full-year profit after tax of $2,983 million,  up 98% (2011: $1,507 million)

An underlying net profit after tax of $2,061 million was achieved (up 25% compared to previous year), excluding non-recurring items. These results were underpinned by a 31% increase in production and an associated 30% increase in sales revenue. Key to these increases was the successful start-up of Pluto LNG and higher contributions from the Vincent and North West Shelf oil facilities.

Woodside CEO Peter Coleman said the result demonstrated the transformational effect of Pluto LNG on the company’s finances, with excellent early performance at Pluto and a strong foundation business delivering record profit.

“The safe start-up of Pluto marks 2012 as a milestone year for Woodside, and cements our position as Australia’s leading LNG operator,” Mr Coleman said.

“We were pleased to be able to deliver this world-class project while also achieving much more during the year. This included realising early  value for shareholders from the Browse resource through sale of a minority portion of our equity, and capturing new value-creating  opportunities in line with our revised strategy.

“We also undertook a significant program of organisational and cultural change that we are confident will set Woodside up for long-term success.”

Production outlook
Woodside’s production target for 2013 remains unchanged at a range of 88 to 94 MMboe, comprising 47% from NWS Gas facilities, 41% from Pluto LNG and 12% from other assets.

Investment expenditure
Investment expenditure in 2012 was $1.8 billion, a 53% reduction from 2011 ($3.8 billion). The decrease was  largely driven by lower  expenditure at Pluto as construction was completed and  the project  transitioned to operational status.

Investment expenditure for 2013 is expected to be $2.6 billion, which is higher than previous guidance due to  anticipated additional  expenditures associated with  the  Leviathan and Myanmar opportunities.  The  expected  investment expenditure amount comprises $2.1 billion  capital plus $0.5 billion of exploration expenditure.  This estimate does not yet include forecast  project expenditure that would result from a  final investment  decision for the proposed Browse LNG Development.

[mappress]
February 20, 2013