On 17 January 2019, Woodside Petroleum Limited (ASX: WPL) released its fourth quarter report for the period ended 31 December 2018. The company is Australia’s leading energy player engaged in oil and gas exploration and development.
- The base business demonstrated a strong performance with Pluto achieving 99.7% reliability thereby driving increased LNG production and above expectation production results of Wheatsone. 10% increase in FY18 production was declared as compared to the previous period.
- The company delivered Q4 production of 24.1 MMboe (up 10% from Q4 2017) and annual production of 91.4 MMboe (up 8% from FY 2017).
- An impressive 43% increase in sales revenue was reported to $1,419 million, driven by higher prices and solid production levels.
- The Greater Western Flank Phase 2 project was started in October, six months ahead of schedule and $630 million under the total budget.
- Above expectation production at Trains 1 and 2 at Wheatstone LNG. The first domestic gas plant was completed with first domestic gas production targeted in Q1 2019.
- 83% completion of the Greater Enfield project with eight of the twelve wells successfully completed. The dry-dock program at the Keppel shipyard, Singapore was completed by Ngujima-Yin FPSO. Operations continue across the processing facilities of the FPSO.
- The front-end engineering design operations commenced for the proposed SNE Field Development Phase 1 in Senegal. The Senegalese Government has approved the development’s Environmental and Social Impact Assessment.
- Woodside assumed the role of operator of the SNE Field Development on 1 December 2018 following approval by the Minister of Petroleum and Energies.
- The RSSD joint venture commenced FEED activities and awarded the subsea FEED contract on 16 December 2018. Further FEED contracts are expected soon.
- FEED for the proposed Pluto-North West Shelf Interconnector gas pipeline was completed for the Pluto LNG facilities and pipeline.
- Pluto Train 2 FEED contract to Bechtel and Julimar Phase 2 execute contracts to OneSubsea Australia and Diamond Offshore were awarded.
- The first supplies from Pluto were delivered into the Dampier to Bunbury Natural Gas Pipeline.
- The designing for Scarborough offshore infrastructure was completed.
- Sale and Purchase agreements were signed with Perdaman and Alcoa, enhancing the market presence in Western Australia.
- The gas agreement was entered with Perdaman for the next two decades.
2018 Full-Year Guidance
- Oil and gas properties depreciation and amortisation: $1,420 – 1,440 million.
- Net finance costs: $175 – 195 million, Trading costs: $210 – 230 million, Production costs: $455 – 475 million.
- Petroleum resource rent tax: accounting benefit to be $40 – 60 million.
- Production guidance of 88 – 94 million barrels.
- Liard Basin production projected to cease by mid-2019.
- Investment expenditure: $1,600 million to $1,700 million.
- Turnaround for Pluto LNG for April-May 2019.
- No exploration is planned for Q1 2019.
Stock performance: The WPL stock is trading at A$33.750, up by 0.686 % (as at 2:19 PM, 17 January 2019). The share price has risen by 7.64% over last one month.
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