Australia: Woodside 1H Profit at AUD 812 Mln

Woodside today reported a half-year profit after tax of $873 million, underpinned by a 22.5% increase in production and a 7.6% increase in operating revenue.

Key to these increases was the full half-year of production from the Pluto LNG Plant. Production of 41.9 million barrels of oil equivalent (MMboe) was a first-half record for the company.

Woodside CEO Peter Coleman said the company’s total production was on an upward trajectory due to the strong performance of Pluto LNG since start-up. “It is pleasing to see the increase in production volumes, which have more than offset a changing product mix to drive an increase in sales revenue. Our focus now is to enhance margins and build on the value provided by the base business,” Mr Coleman said.

Mr Coleman noted that Woodside continued to execute its strategy to secure new growth opportunities, as evidenced by the company’s recent conditional entry into acreage offshore Ireland.

“Our securing of new growth opportunities continues alongside a period of increased returns to shareholders, with a special dividend of US 63 cps and increased dividend payout ratio target announced during the half,” Mr Coleman said.

“We have also made good progress with our fellow joint venture participants on reviewing alternative solutions for the Browse LNG Development. As a result, Woodside is now in a position to recommend to the Browse Joint Venture that a phased floating LNG development be selected, enabling the earliest commercialisation of this world-class resource.”

Pluto LNG – Woodside 90% (operator): Pluto LNG continued to make a strong contribution to Woodside’s production and achieved a number of operational milestones during the period. Plant capacity utilisation has been a highlight since start-up. Pluto LNG achieved a utilisation of 85.3% over the period between start-up in May 2012 and end of June 2013.

A planned maintenance shutdown in April and an unplanned shutdown of the train in late June resulted in lower LNG and condensate production than the previous half. Production for the period comprised 1,742,989 tonnes of LNG and 1,271,070 barrels of condensate. Production in the period supported LNG sales revenue of $771.9 million (Woodside share) from long-term contracts and spot sales. Condensate revenue was $132.7 million (Woodside share).

During the half, the fourth vessel in the Pluto LNG fleet was named. The ‘Woodside Rogers’ completed its maiden voyage in late July 2013. The vessel was named after Woodside’s former Chairman Bill Rogers and is the second long-term charter vessel for Pluto LNG. The vessel provides shipping capacity to maximise value from Pluto LNG sales and will support expansion of our LNG trading and shipping business.

In March 2013 the 50th Pluto LNG cargo was delivered.

North West Shelf 1 – Woodside 12.5%-50% 2 (operator): In the first half of the year NWS delivered 119 cargoes of LNG on behalf of the NWS joint venture participants, compared to 111 in the first half of 2012. The increase was due to reduced project and shutdown impacts in 2013.

One of the largest planned shutdowns ever conducted at the Karratha Gas Plant was undertaken in Q2 with more than 2000 personnel on site. The LNG Train 2 shutdown involved large-scale corrosion refurbishment, turbine and compressor overhauls, valve replacements and overhauls, and other required maintenance activities.

In June the NWS Project received environmental approval from the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) to undertake the Fortuna 3D marine seismic survey. The seismic survey will cover 4050 km2 of NWS acreage and will be the largest ever delivered by the NWS Project.

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LNG World News Staff, August 21, 2013; Image: Woodside