Australia’s Woodside yesterday reported a 46.5% drop in revenue in the second quarter ending June 30 to USD898 million. This is almost half of the USD1.7 billion for the same time last year. Sales dropped 18.4% from 23.9 million barrels of oil equivalent (MMboe) to 19.5 MMboe, as oil and gas prices neared a five-year low.
The biggest drop in revenue, 36.2%, came in the last quarter, the oil and gas major stated in its June quarter report. In the March quarter Woodside reported a 20.1% or USD 1.4 billion drop in revenue.
LNG revenue averaged USD64 per barrel for the June quarter, 35% below the USD99 per barrel average price of the previous quarter, Woodside reported.
Despite this, Woodside announced it had decided on 30 June to go ahead with its joint venture partners with developing the Browse Floating Production Facility (FLNG).
“A technology licence and services agreement has been executed to enable the Browse FLNG Development to utilise Shell’s FLNG technology,” Woodside reported.
Related news:Woodside’s revenue plummets 20.1%
Australia’s Wheatstone project with Chevron was also reported to be 60% completed.
Internationally Woodside reported talks are continuing with Timor Leste over the Sunrise LNG field, but were dependent on government negotiations, the company said. Timor is currently taking Australia to the Hague over the maritime borders and division of the spoils. It is also opposes Woodside plans to use a FLNG facility in the Timor Sea, rather than producing the LNG in Timor.
Woodside exploration in Myanmar, New Zealand, Cameroon, Morocco and Korea continues, but the company announced it would withdraw from Tanzania.
On top of falling oil prices Woodside report unscheduled outages during the quarter. Output this year, nevertheless was expected to meet projections.
Australia is reeling from triple whammy of a plunge in iron ore, coal and LNG prices, emptying the government coffers and increasing national debt.