Lower LNG sales hit Woodside’s Q2 revenue

Australian LNG player Woodside reported a 36.2% plunge in second quarter revenue reaching $897.5 million compared to $1,4 billion in the first quarter 2015.

LNG revenue is largely indexed to an approximate four-month lagged Japanese Custom Cleared price, which averaged $64/bbl for the quarter, 35% below the $99/bbl average price of the previous quarter.

The company said in its report that production decreased 7.8% predominantly due to lower LNG volumes at Pluto associated with a planned turnaround and lower LNG volumes at North West Shelf due to the unplanned outage.

The company’s revenue from the Pluto LNG facility reached $346.0 million compared to $712.0 million in the first quarter. The shutdown at the North West Shelf project affected revenue that dropped to $200.3 million from $342.8 million in the first quarter and $404.4 million in the same quarter in the past year.

Sales volumes decreased 18.4% due to lower LNG production and associated condensate production, as well as the timing of shipments, the company said.

Compared to the same quarter in 2014, the production volumes decreased 14.5%. Sales volumes decreased 9.3% while sales revenue for the quarter decreased 46.5% predominantly due to lower oil prices and lower sales.

LNG World News Staff; Image: Woodside