Woodside Sees 8% Drop in Q2 Revenue

Australia's Woodside on July 15 reported an 8.35% yr/yr drop in revenue for the three months to June 30 (Q2) thanks to weaker realised oil and gas prices as demand plunged due to Covid-19 lockdowns.

The company’s revenue for the period fell to $768mn, from $838mn in the same quarter a year ago. Sales volume in Q2 was 27.1mn barrels of oil equivalent, up 39.6% yr/yr. Woodside produced 25.9mn boe in Q2 compared with 17.3mn boe in the same quarter of the previous year.

For Q2, the average realised price for Woodside's products was $28/boe, down from $43/boe it earned in the same quarter of last year.

The company also said it was targeting final investment decisions for its Scarborough and Pluto Train 2 projects in the second half of 2021. “The 2020 work plan has been agreed with engineering, procurement and construction contractors. Commercial negotiations continue in support of the targeted FID,” it said. Woodside is targeting Browse FID from 2023.

In March, Woodside had deferred targeted FIDs on Scarborough, Pluto Train 2 and Browse and slashed approximately 50% in forecast 2020 total expenditure in response to uncertain market conditions created by low oil prices and Covid-19 outbreak.

On July 14, the company said it will recognise non-cash, post-tax impairment losses of $3.92bn (A$5.6bn) during the six months to June 30 thanks to a drop in oil and gas prices. Woodside will report its first-half fiscal 2020 earnings on August 13.