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- As the global energy market continues its recovery, Woodside (WPL) has reported a spike in its half-year financial performance
- Despite a drop in production, sales for the period jumped six per cent to 53.9 million barrels of oil equivalent (mmboe)
- A jump in prices helped revenue surge from around US$1.9 billion (A$2.62 billion) last year to more than US$2.5 billion (A$3.45 billion)
- As a result, net after-tax profit soared to US$317 million (A$437 million) from a loss of more than US$4 billion (A$5.51 billion) this time last year
- Shares in Woodside are down 1.21 per cent to trade at $20.48
As the global energy market trudges along its path of recovery, Woodside (WPL) has reported a spike in its half-year financial performance.
Despite production falling eight per cent, from 50.1 million barrels of oil equivalent (mmboe) to 46.3 mmboe, sales volumes saw a six per cent increase to 53.9 mmboe.
That, combined with a 24 per cent increase in the average price per barrel, led to a surge in revenue, from around US$1.9 billion (A$2.62 billion) last year to more than US$2.5 billion (A$3.45 billion).
As a result, net profit after tax soared to US$317 million (A$437 million) from a loss of more than US$4 billion (A$5.51 billion) this time last year, when the COVID-induced market crash culminated in hefty write-downs. Based on such success, Woodside’s directors have elected to pay an interim dividend of US30 cents (A41.35 cents) per share.
“Our revenue was buoyed by higher realised prices driven by the recovery in demand for LNG and oil,” said Meg O’Neill, whose position as chief executive was cemented yesterday at the same time a $41 billion merger with BHP was unveiled.
“Sales volumes increased by 6 per cent to 53.9 million barrels of oil equivalent for the half, as we increased trading activity in response to favourable market conditions.”
According to yesterday’s announcement, BHP’s oil and gas business will merge with Woodside, creating an energy behemoth with a significant presence in the Gulf of Mexico.
The combined entity, which will continue to be led by Ms O’Neill, will have production of about 200 mmboe and reserves of more than two billion mmboe, and will be owned 52 per cent by Woodside shareholders and 48 per cent by those of BHP.
“The proven capabilities of both Woodside and BHP will deliver long-term value for shareholders through our geographically diverse and balanced portfolio of tier 1 operating assets and low-cost and low-carbon growth opportunities,” Ms O’Neill said.
“The proposed transaction de-risks and supports Scarborough FID later this year and enables more flexible capital allocation.”
For the rest of this year, Woodside has marginally reigned in its production targets, cutting the estimated figures from between 90 and 95 mmboe to between 90 and 93 mmboe. Uncontracted production will remain at between 10 and 15 per cent.
Shares in Woodside were down 1.21 per cent to trade at $20.48 at 12:28 pm AEST.
