Photo: Sangomar FPSO illustration; Source: Woodside

Woodside’s revenues sink despite record output

Australian energy giant Woodside saw its quarterly revenues drop, affected by the low oil price environment and the coronavirus pandemic, despite record-high output in the second quarter of 2020.

Delivered record production of 25.9 MMboe, up 7 per cent from 1Q 2020, contributing to record first-half output of 50.1 MMboe, up 28 per cent from H1 2019.

In the second quarter of 2019, Woodside’s production was 17.3 MMboe.

In the second quarter of 2020, Woodside delivered increased sales volume of 27.1 MMboe, up 13 per cent from Q1 2020 and sales volumes of 23.9 MMboe.

In 2Q 2019, the company’s sales volumes were 19.4 MMboe.

Woodside noted in the report that it had achieved record equity domestic gas sales volumes.

The company delivered sales revenue of $768 million, down 29 per cent from 1Q 2020 and revenues of $1.076 billion. In 2Q 2019, the company’s sales revenues were $838 million.

As previously reported, Woodside took a $2.76 billion hit in its financial statements for the first half of the year for oil and gas properties.

The company added it would also recognize a $1.16 billion impairment loss for exploration and evaluation assets.

Sangomar drilling slated for mid-2021

Woodside also said in its 2Q 2020 report on Wednesday it is progressing contracting and procurement activities and working with contractors on detailed design work for the Sangomar FPSO and the start of fabrication of subsea equipment.

Woodside is also actively preparing for the 23-well development drilling campaign at Sangomar for which it has already hired Diamond Offshore-owned drillships.

The company said that the campaign is targeted to start in mid-2021.

Phase 1 subsea infrastructure and overall project planning remain on track for delivery of first oil targeted in 2023.