Woodside revenue plunges $1.8b in a quarter

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Woodside’s revenue dropped 29 per cent in the June quarter, driven mainly by a 34 per cent plunge in the average price for its gas exports.

Australia’s largest oil and gas company received an average of $US63 a barrel for its products in the latest quarter, down from $US85 in the preceding three months and $US95 a year ago, it said in a statement to the ASX on Wednesday.

Meg O’Neill has led Woodside for more than a year, overseeing the takeover of BHP’s petroleum assets.Credit: Ben Searcy

Woodside chief executive Meg O’Neill said the company’s operational performance for the quarter had been strong, with a planned maintenance shutdown at the Pluto LNG project completed on time.

The work on Pluto, which is Woodside’s largest source of production due to its 90 per cent stake in the project, had been disrupted by an explosion at the onshore LNG plant that delayed work for some days.

“Whilst production and sales were lower compared with the first quarter of 2023, they were higher than the corresponding period last year, reflecting Woodside’s expanded operations portfolio,” O’Neill said.

Lower prices for LNG were the major reason for the $US1.25 billion ($1.83 billion) revenue drop in a quarter to $US3.08 billion. The exports from WA fetched 34 per cent less, while the oil price only dropped $US1 to $US75 a barrel. The average price for all production dropped 26 per cent to $US63 a barrel.

O’Neill said that Woodside’s $US12 billion Scarborough to Pluto project, which is planned to start gas exports in 2026, was now 38 per cent complete.

The company was engaging with the offshore safety and environment regulator NOPSEMA on the environmental plans that require approval before it can commence any activity offshore.

Offshore work for Santos’ Barossa project north of Darwin has been stalled after the Federal Court ruled the company had not properly consulted Tiwi islanders about drilling. The full bench of the Federal Court rejected Santos’ appeal in December 2022, causing the entire offshore oil and gas industry to reassess the robustness of its approvals.

On Tuesday, Woodside announced that production from its Sangomar oil project off Senegal in West Africa would be delayed by a further six months after problems were found in the floating production vessel under construction in Singapore.

O’Neill said the quarter – marred by the death of rope access worker Michale Jurman on the North Rankin gas platform in June – was “an extremely difficult period for everyone at Woodside”.

WA Police and NOPSEMA are investigating the accident.

The Woodside share price was up 1.1 per cent or 40 cents to $35.95 a share after trading opened on Wednesday.

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