First-Profit of Woodside Rises by 49% on Higher Energy Prices

Published Date : Aug 16, 2017

The largest gas and oil produces in Australia, Woodside Petroleum Ltd. has posted an increase of 49 percent in the first-half profit amidst lower production costs and higher energy prices.

Net income of Woodside Petroleum Ltd., a Perth-based company, rose from US$340 million to US$507 million a year back. This rise in income triumphed an estimate from Nik Burns, a UBS Group AG analyst, of US$452 million. The result was encouraged by a 6 percent downfall in the manufacturing costs barrel of oil equivalent to US$4.90.

Woodside Petroleum Ltd. which functions the North West Shelf and Pluto liquefied natural gas plants in Western Australia, announced last month its output for the first-half had gone down to 42.2 million barrels of oil equivalent on earnings of US$1.76 billion.

The Perth-based gas and oil giants expect first production in the month of September from the Wheatstone LNG plant operated by Chevron Corp. where the company is the stakeholder of 13 percent. Macquarie Group Ltd. spoke on 30th June that the two companies might also work together on North West Shelf plant that is operated by Woodside Petroleum Ltd. where Chevron could be presented with a taxing opportunity for its equity gas.

The company also expects to accelerate Browse, its long-stalled project for gas resource in 2018, potentially transporting the gas back through either the Pluto or Northwest Shelf Plant. Neil Beveridge, an analyst with Sanford C Bernstein & Co., said in his research note that progressing the project will not be a cakewalk given Woodside Petroleum Ltd. will need to bring all the venture partners of the Browse on board.