Woodside achieves second best yearly result in its history

Australia’s Woodside Petroleum has reported a 41.4% decrease in profit for the year 2013. The company earned  $1,749 billion in 2013.

In a press release issued today, the company said that the profit achieved was in line  with analysts’ consensus of US$1,753 billion.  Also, it was the second highest result in the company’s history, exceeded only by the 2012 result, which was enhanced by the Browse partial equity sale.

Woodside CEO Peter Coleman said the figures demonstrated Woodside’s strong operating cash flow and commitment to capital management.

The company said strong production from Woodside’s base business helped the company achieve this result. Also, the company said that the profit result was underpinned by record annual production of 87 million barrels of oil equivalent  (MMboe), up 2.5% on the previous year (84.9 MMboe) and supported by a full year of production from Pluto LNG.

“In 2013 we made disciplined investment decisions, including our decision not to proceed with the James Price Point development concept for Browse because it did not meet our commercial requirements for a positive investment decision,” he said.

Coleman said Woodside had achieved healthy margins in 2013, despite a change in product mix. Underlying profit had been impacted by a higher proportion of lower priced gas volumes, which saw a decline in average realised pricing. Impairments to some mature oil assets also affected the result.

“We have generated $5.9 billion in free cash flow over the past two years. This has enabled us to pay back debt and reward our shareholders through increased dividends. Importantly, it also provides the financial base for our next phase of growth.”

Woodside reaffirmed its 2014 production target range of 86 to 93 MMboe.