High Asset

Woodside Energy sees higher annual output on boost from BHP assets

[ad_1]

FILE PHOTO: The logo for Woodside Petroleum, Australia’s top independent oil and gas company, adorns a promotional poster on display at a briefing for investors in Sydney, Australia, May 23, 2018. REUTERS/David Gray

Register now for FREE unlimited access to Reuters.com

  • Q2 revenue more than doubles, beats estimates
  • Hikes 2022 capex forecast
  • Calls off stake sale in Sangomar project

July 21 (Reuters) – Australia’s Woodside Energy Group Ltd (WDS.AX) forecast higher annual production on Thursday after more than doubling its quarterly revenue on strong energy prices and contributions from its newly acquired petroleum assets from BHP Group (BHP.AX).

The Perth-based gas producer also said it was calling off plans to sell its stake in the $4.6 billion Sangomar project in Senegal. Woodside owns 82% of the Sangomar exploitation area.

For fiscal 2022, Woodside now expects total production of between 145 million and 153 million barrels of oil equivalent (mmboe), higher than a prior forecast of between 92 and 98 MMboe. It reported 91.1 MMboe last year. (https://bit.ly/3yUMSTs)

Register now for FREE unlimited access to Reuters.com

The country’s biggest independent gas producer also hiked its annual capital expenditure forecast to a range of $4.30 billion to $4.80 billion from its prior view of $3.8 billion to $4.2 billion.

Prices of oil and liquefied natural gas (LNG) have sky-rocketed after sanctions imposed on Russia for invading Ukraine worsened supply issues in an already tight market.

That has led buyers from Asia and Europe to seek alternatives to Russian gas, likely benefiting producers such as Australia and Papua New Guinea.

The average realised prices that Woodside received for its products was $95 per barrel of oil equivalent (boe) in the June quarter, up from $46 per boe last year.

That boosted Woodside’s revenue for the second quarter ended June 30 to $3.44 billion, which included a one-month contribution from BHP’s assets.

That was higher than Woodside’s revenue of $1.33 billion a year earlier and beat an RBC Capital estimate of $2.63 billion.

Woodside produced 33.8 mmboe during the period, up from 22.7 mmboe a year earlier. It beat an RBC estimate of 21.7 mmboe. Sales volume for the period jumped 27% to 35.8 mmboe.

Register now for FREE unlimited access to Reuters.com

Reporting by Sameer Manekar and Indranil Sarkar in Bengaluru; Editing by Devika Syamnath and Anil D’Silva

Our Standards: The Thomson Reuters Trust Principles.

[ad_2]

Source link