Woodside’s profit climbs 18 pct in 2017, pushes back Browse LNG FID

Australia’s Woodside Petroleum on Wednesday reported an 18 percent rise in annual profit on the back of higher oil, gas and LNG prices.

The LNG company posted a net profit of $1.02 billion for 2017, up from $868 million last year.

Woodside declared a full-year dividend of $0.98 per share, up from $0.83 a share a year ago.

Production was 84.4 MMboe and sales revenue was $3.62 billion.

The company also announced it planned to raise $2 billion from investors to buy US energy giant Exxon’s stake in the Scarborough field.

Woodside chief executive Peter Coleman said that 2017 had been a good year for the company, with strong financial results and progress on projects.

The company generated free cash flow of $832 million, while maintaining investment in growth projects and developments.

“The safe start-up of Wheatstone LNG Train 1 was a significant milestone for the company and we look forward to the delivery of LNG Train 2 and the domestic gas facility this year while supporting the operator (Chevron) to optimise lifting costs and maximise production rates,” Coleman said.

Browse LNG FID delayed

Woodside also announced on Wednesday it expects to take a final investment decision on its Browse LNG project in 2021.

This is one year later than the previous target. The project is estimated to cost $15 billion.

The company said it “progressed commercial discussions and joint technical feasibility studies for processing Browse resources through NWS infrastructure.”

The Browse development aims to commercialize the Brecknock, Calliance and Torosa fields containing gross contingent resources of 16 trillion cubic feet of dry gas and 466 million barrels of condensate, according to Woodside.

Woodside’s participating interest in the Browse resources is 30.6%, Shell owns 27% in the Browse JV while BP holds a 17.33% stake. Japan Australia LNG (MIMI Browse) has a 14.40% stake in the JV, and PetroChina holds a 10.67% stake.

LNG World News Staff