Woodside today reported a first-half profit after tax of US$828 million, underpinned by continued strong performance of the North West Shelf and higher revenues. The underlying net profit after tax of US$842 million was up 3.6%.
Woodside Chief Executive Officer Peter Coleman said “Our focus on operational excellence continues to deliver outstanding results and today’s financial result highlights the ongoing strength of the company’s base business.
“Woodside’s extensive production facilities are performing well and delivering strong revenues. With around US$2.9 billion in cash and undrawn facilities, together with continued strong cash flows from the underlying business, we enter the second half of 2011 well positioned to fund our growth plans.
“We will continue a disciplined approach to investment to maximise, deliver and capture value from our existing business, our LNG growth options and select opportunities.”
– Reported net profit after tax was $828 million ($901 million 1H 2010), down 8.1%, largely due to last year’s first-half being positively impacted by a gain on the sale of Woodside’s Otway assets and a lower income tax expense.
– Underlying net profit after tax was $842 million, up 3.6% ($813 million 1H 2010) and represents our second highest first-half profit.
– Strong revenue of $2,253 million up 7.2% ($2,102 million 1H 2010). The recent period of higher commodity prices continues to positively impact profit performance.
– First-half production of 31.9 MMboe (36.7 MMboe 1H 2010), down 13.1% compared to 1H 2010 primarily due to planned maintenance and project outages (-4.3%), cyclone interruptions (-3.6%), average field decline (-3.4%) and divestments (Otway, GOM shelf; -3.4%), partially offset by increased reliability (+1.6%). This was a solid result and keeps us on track for the FY 2011 target of 62 to 64 MMboe.
– Operating cash flow of $1,391 million, up 38.1% ($1,007 million 1H 2010).
– Robust balance sheet to fund growth with $2.9 billion in cash and undrawn debt facilities.
– Capital expenditure# of $1.5 billion, down 6%, as Pluto nears completion.
– Interim dividend of US55 cents per share (cps) fully franked (US50 cps 1H 2010).
– LNG Growth Projects:
– Pluto LNG Foundation Project – production and cash flow commencing in 2012.
– Pluto Expansion – Carnarvon Basin drilling and discussions with other resource gas owners continue.
– Browse – front-end engineering and design (FEED) underway and land access secured.
– Sunrise – actively re-engaging with government stakeholders.
Source: Woodside, August 17, 2011;