Australia's Woodside reports 2% decline in Q2 revenue
Australian energy producer Woodside on July 23 reported a 2% year/year decline in sales revenue for the April-June quarter (Q2), attributed to softer product prices.
During Q2, Woodside recorded sales revenue of $3.03bn, compared to $3.08bn in the same period the previous year. However, sales revenue was up 2% quarter/quarter. The average realised product price in Q2 was $62/barrel of oil equivalent (boe), down from $63/boe in the corresponding period last year. The realised price was also down 2% quarter/quarter.
Sales volume increased by 5% quarter/quarter, totaling 48mn boe, while production saw a 1% quarter/quarter decrease to 44.4mn boe. The company stated it is on track to achieve its full-year production guidance of 185-195mn boe.
Woodside’s Scarborough project was 67% complete at the end of the quarter, with the first LNG cargo expected in 2026. The total estimated cost of the Scarborough project has increased by 4% to $12.5bn ($8.2bn Woodside share), driven by scope maturation of the Pluto Train 1 modifications project.
The Scarborough project, situated approximately 375 km off the coast of Western Australia, encompasses the Scarborough joint venture, the Pluto Train 2 joint venture, and modifications to Pluto Train 1 to accommodate Scarborough gas. Gas extracted from Scarborough will undergo processing at the Pluto LNG facility, where Woodside is presently constructing Pluto Train 2.
The Perth-based company announced on July 22 a definitive agreement to acquire US-based Tellurian and its Driftwood LNG project for $1.2 billion, including debt.
“The recent announcement of an agreement to acquire Tellurian and Driftwood LNG positions Woodside to be a global LNG powerhouse, adding scalable US LNG development exposure to our portfolio,” said Woodside CEO Meg O’Neill.
Driftwood LNG is a fully permitted, pre-final investment decision (FID) development opportunity located near Lake Charles, Louisiana. The current development plan comprises five LNG trains through four phases, with a total permitted capacity of 27.6mn tonnes/year. The foundation development includes Phase 1 (11mn tonnes/year) and Phase 2 (5.5mn tonnes/year). Woodside is targeting FID readiness for Phase 1 of the Driftwood LNG development opportunity in the first quarter of 2025.
The transaction, which was unanimously approved by both boards of directors, is expected to close in Q4 2024, subject to customary closing conditions, including approval from Tellurian shareholders and the receipt of regulatory approvals.