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    Woodside's revenue more than doubles in Q3 [Update]

Summary

Global oil and gas prices have continued their upward trajectory, underlining the rebound in demand as economic activity has picked up in Asia and elsewhere, the company said. (Update clarifies Wheatstone reserves adjustment.)

by: Shardul Sharma

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Woodside's revenue more than doubles in Q3 [Update]

Australia’s Woodside on October 21 reported a 119% year/year jump in sales revenue during the three months to September 30 (Q3) thanks to higher realised oil, gas and condensate prices.

The company’s revenue rose to $1.53bn from $699mn a year earlier. Its revenue rose 19% quarter/quarter. Woodside said it produced 22.2mn barrels of oil equivalent during Q3, down from 25.9mn boe in the same period last year. 

Woodside's realised price for its products in Q3 was $59/boe, up from US$26/boe in the same quarter last year. The realised price was up 28.2% q/q. LNG price was up 148% yr/yr while the domestic gas price was up 30.7% yr/yr. Average oil price almost doubled to $80/boe, Woodside said.

“Global oil and gas prices have continued their upward trajectory, underlining the rebound in demand as economic activity has picked up in Asia and elsewhere,” CEO Meg O’Neill said. “In addition, short-term gas hub prices in Europe and Asia have experienced unprecedented and sustained increases in both value and volatility with pricing indices in both markets recently reaching all-time highs.”

O’Neill reiterated that the company was on track for a targeted final investment decision (FID) on the Scarborough and Pluto Train 2 developments before the end of this year.

“All major contracts and Commonwealth and Western Australia primary environmental approvals to support an FID are now in place, and commercial agreements are approaching finalisation,” she said. “The proposed Scarborough and Pluto Train 2 equity sell-downs are progressing well, and timing of the Pluto Train 2 sell-down is aligned with the targeted FID later this year.” 

Meanwhile, the company has adjusted its estimate of reserves at Julimar and Brunello, two of the four fields which provide natural gas to the Wheatstone LNG project. After completing reservoir studies based on 4D seismic, well performance and well drilling results, the company reduced its estimate of total proved plus probable reserves by 27%, to 168.4mn boe.