FIRST QUARTER REPORT FOR PERIOD ENDED 31 MARCH 2020
• Delivered production of 24.2 MMboe, up 12% from Q1 2019.
• Successfully mitigated impacts of Tropical Cyclone Damien.
• Realised pricing down 20% from Q1 2019.
• Implemented appropriate responses to combined impact of COVID-19 and lower commodity prices.
Executing a clear plan
• Reduced targeted 2020 total expenditure by approximately 50%.
• Hedged 13.35 million barrels of oil in the period April to December 2020.
• Achieved FID on Sangomar Field Development Phase 1.
• Achieved FID on Greater Western Flank Phase 3.
• Subsequent to the period, received Commonwealth regulator approval for the Scarborough Offshore
Woodside CEO Peter Coleman said production for the first quarter was 12% higher than the corresponding
three months of last year at 24.2 MMboe, although both periods were impacted by cyclone activity.
“Tropical Cyclone Damien, which crossed the Western Australian coast in February, was the most significant
weather event ever to pass over Woodside’s production facilities on the Burrup Peninsula. Despite the
severity of the storm, the team put in an outstanding effort to ensure the safety of our people and our assets
and restore normal operations in a matter of days.
“Nevertheless, revenue for the quarter was impacted by reduced trading activity and lower realised prices
due to COVID-19 and an unprecedented combination of oversupply and short-term demand destruction.
“Of course, most of the quarter was overshadowed by the growing threat of the COVID-19 pandemic, which
has required us to take swift and decisive action to protect our workforce, communities and operations. I’m
proud of how Woodside’s people have responded to these uniquely challenging circumstances and
remained focused on maintaining the safe and reliable operations which have ensured gas supplies to
Western Australia and our overseas customers have not been impacted.
“We’ve also had to make tough but prudent decisions to ensure the financial integrity of our business, and
these mean our spending in 2020 will be reduced by 50% and a targeted final investment decision (FID) on
our Scarborough and Pluto Train 2 developments has been deferred from this year to next. Still, we are
progressing with commercial agreements and regulatory approvals for these world-class developments to
ensure they are ready for FID when investment conditions improve.
“We made solid progress on our near-term growth projects during the quarter, taking FID on Sangomar Field
Development Phase 1 in Senegal and the North West Shelf’s Greater Western Flank Phase 3, as well as
making significant execution progress on Pyxis Hub and Julimar-Brunello Phase 2,” he said.
courtesy of Bell Direct
( DYOR )
i hold WPl
take care lots or turbulence in this sector currently
Morningstar has WPL - Significantly Undervalued at a 49% Discount. Fair Value $44.60
Goldman Sachs has a Target Price $33.85
Bears say there could be problems with Chinese demand - economic or political. There would still be some development to happen for the full "fair value" to happen & a lot of development has been shelved.
Bulls say cash flow base is comparatively diversified, with LNG production making it less susceptible to the vagaries of pure oil producers. Gas is a primary component of Asian base-load power generation, instilling an element of demand stability, and is generally sold under long-term contracts. Oil price is rebounding. if carbon taxes are instituted in Oz & overseas & Covid Commission has its way, gas is a clear beneficiary.
To my eye trading in energy & WPL (buying the dips & selling the schwings) is easy money because the schwings are wild on some wild news. And if you mistime the trade, it will come back soon anyway because its so oversold & the economy is FUBAR. Governments will be pushing for manufacturing to continue.