Australian energy company Woodside saw its full year profit fall 99 percent to $26 million, down from last year’s $2.4 billion due to the dramatic fall in oil prices and asset impairments.
Adjusted for one-off non cash items, profit was $1.1 billion, still down from 2014, due to falling commodity prices and revenues, partially offset by cost reductions.
Woodside CEO Peter Coleman said impairments were mostly driven by the collapse in near-term crude oil prices and an approximate 20% reduction in the company’s longterm pricing assumptions for the purpose of determining asset values.
Operationally, Woodside said it achieved its second highest production on record of 92.2 mmboe, and increased proved plus probable (2P) reserves to 1,508MMboe, up 12.7% from 2014.
Looking ahead, Woodside said that in 2016 it expects it production to be between 86 and 93 mmboe.
Peter Coleman said: “Woodside, with its low cost of production, is well positioned to withstand this commodity cycle. “
“A strong performance from our operating assets, disciplined financial management and productivity gains reflect our ongoing commitment to delivering value for our shareholders.
“Throughout 2015, we focused on driving forward productivity improvements and achieved some great results. We also maintained strong levels of liquidity and have low levels of committed capital expenditure,” he said.