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Highlights
- Woodside Petroleum’s oil production dips for the March quarter.
- Woodside’s oil and LNG sales volumes increase, along with higher average realised price.
- WPL achieves significant milestones in the proposed merger with BHP Petroleum.
Australian oil and gas and LNG company Woodside Petroleum Ltd. (ASX:WPL) has released its first quarter report for period ended 31 March 2022 on the ASX today (26 April). Oil production was down 1% from previous quarter and delivered sales volumes were also higher. According to Woodside, Russia-Ukraine war, western sanctions and supply shortages have pushed average realised price per barrel of oil equivalent higher. Woodside thus expects continued benefits in the second quarter.
Highlights of Woodside Petroleum Ltd.’s Q1-22 report
- In comparison to Q4 2021, WPL production lowered 1%, sales volume rose 2%, pushed by a spike in produced LNG volumes. Average realised price up 3%, however, delivered sales revenue remained 17% lower, with slowed trading activity.
- In terms of operations and projects, Woodside kicked off processing of Pluto gas at the Karratha Gas Plant and achieved steady state operations at Julimar-Brunello Phase 2. It also signed binding agreements to deliver three new-build LNG carriers for long-term charter hire ahead of Scarborough’s first cargo anticipatd in 2026. In April WPL also released shareholder materials ahead of voting to be done for approval of the proposed BHP merger into the petroleum business.
Management commentary
According to Meg O'Neill, CEO, Woodside, the jump in Woodside Petroleum’s quarterly revenue seems to have benefitted by the oil and gas price hike sparked by Russia-Ukraine war and post-pandemic demand recovery. Moreover, tight supply has already pushed prices of LNG to record highs even before the Russia-Ukraine geopolitical tussle. As a result, WPL expects even the upcoming second quarter to see continued benefit of stronger prices.
BHP and Woodside’s petroleum business merger
Woodside expects to merge the petroleum business of BHP Group (ASX:BHP) by June. Regulatory filings for the same have been done in the ongoing month at the NYSE (New York Stock Exchange) and London Stock Exchange (LSE). The WPL board has in addition recommended the offer to shareholders, on which they are anticipated to vote in May.
WPL share price performance
On the ASX, as of date, shares of Woodside Petroleum Ltd. trade with a market capitalisation of AU$31.55 billion. WPL share price trades in the 52-week range of AU$19.15 to AU$34.6 a share at an average trade volume of over 1.19 million shares during trade hours.
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WPL share price has lost over 5% today in the early trade hours, adding on to the last month’s loss. However, WPL share price as of date is still just AU$4.13 per share above its 52-week low price.
WPL’s road ahead
Woodside has signed binding agreements for new-build LNG carriers. In Senegal, the Sangomar Field Development Phase 1 is complete more than half and first oil is targeted in 2023. Woodside is also seeking an energy transition to become a low-cost, lower-carbon energy provider.
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