Australia: Woodside’s Profit Drops 4.3 pct

Australia: Woodside's Profit Drops 4.3 pct

Woodside, an independent Australian oil and gas company and one of the world’s leading LNG producers, today reported a full-year profit after tax of $1,507 million, underpinned by continued strong performance from the North West Shelf (NWS) Project and higher revenues. The full-year net profit dropped 4.3 pct drop when compared to 2011,

An underlying net profit after tax(1) of $1,655 million was achieved (up 16.7% compared to previous year) after consideration of non-recurring items (refer to Table 1, page 2 for a reconciliation between the reported and underlying profit).

The company reported that full-year 2011 production of 64.6 million barrels of oil equivalent (MMboe) was above mid-year guidance due to lower than expected Q4 cyclone activity and better than forecast facility reliability. Although 11.1% lower than last year’s production, less than one-third of this change was due to natural field decline from Woodside operated fields with the remainder due to higher than normal cyclone activity in Q1 2011 as well as divestments, contract expiry, project redevelopment shut-ins and higher maintenance throughout 2011.

Woodside CEO Peter Coleman said the financial result highlighted the ongoing strength of the company’s base business and its focus on operational excellence was continuing to deliver outstanding results.

“The strong increase in underlying profit demonstrates our ability to continue to maximise value from our premium asset base. In addition, the successful execution of our funding plan for the Pluto LNG Project amidst the global financial downturn, illustrates our effective capital management and sound financial discipline.

 “With more than $2 billion in cash and undrawn facilities and strong cash flows, which will be further boosted when Pluto comes online, we are well placed to fund our LNG growth plans and consider other opportunities which will bring value to shareholders.”

Offshore Energy Today Staff, February 22, 2012