Woodside Petroleum Limited (ASX: WPL), company from the energy sector announced that it had awarded four contracts for front-end engineering design activities for the proposed Scarborough project.
The contracts are for upstream development of floating production unit. The floating production unit is responsible for the export trunkline and the subsea umbilical risers and flowlines. Through each contract, the company will be progressing towards the execution phase which will depend on the positive final investment decision (FID) taken by the Scarborough Joint Venture. The company has awarded the contract to McDermott Australia Pty Ltd. to undertake the engineering studies for the floating production unit. The agreement will give McDermott Australia Pty Ltd an option to progress to an engineering, procurement and construction contract which will enable the company to enter into the execution phase activities. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]
WPL awarded Subsea Integration Alliance, a consortium between OneSubsea Australia Pty Ltd and Subsea 7 Australia Contracting Pty Ltd, a contract to undertake engineering studies for the subsea umbilical risers and flowlines.
For the export trunkline engineering support services, WPL has awarded a contract to Saipem Australia Pty Ltd which will give Saipem Australia an option to execute line pipe coating and installation activities.
WPL awarded Intecsea Pty Ltd for the export trunkline engineering.
For all the four contracts, WPL itself will be making 100% of the initial payment.
To support the project schedule, WPL has awarded these above four contracts for the Scarborough Project next year.
Peter Coleman, who is the CEO of the Woodside Petroleum Limited, stated that the company had made good progress in the Scarborough project since the company increased its stake in the project. Through these four contracts, the company will be able to establish a relationship with these four companies and will also be able to unlock the resources from the Scarborough project.
The official listing of WPL on ASX is 18 November 1971 where the company’s performance since its inception remains -8.10%. In last one year, WPL’s performance was -1.90%.
As per the annual report for half yearly FY2018 results of WPL, which ended on 30 June 2018, the company made a profit of US$593 million. The balance sheet of WPL appears healthy with a net asset base of US$18,016 million and a debt to equity ratio of 0.47 which indicates sound financial health of the company to manage its long-term obligation. Based on the low debt-equity ratio, it can be said that the company used its resources in case of any financial requirement within the company. WPL has a total current asset of US$1,717 million and a total current liabilities of US$1,011 million which means that the company might face a challenge while meeting its working capital requirement and clearing short-term debt.
The total shareholder’s equity is worth US$18,016 million. By the end of the half year FY2018, WPL has net cash and cash equivalent of US$1,133 million. By the end of the trading on 16 January 2019, the closing price of the share was A$33.520 which is 0.060 points above its previous trading day’s closing price with the stock holding a market capitalization of A$31.32 billion and PE ratio 21.12x.
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