A JUMP in production numbers and strong cost cutting measures have helped Woodside record a solid half year performance in a market which has seen a number of its peers hit hard.
The company reported a half-year net profit after tax (NPAT) of US$340 million, underpinned by production of 45.9 MMboe, nine pre cent higher than the same period in 214. Operating revenue for the period was US$1.9 billion.
While the company’s belt tightening saw it produce ”world-class” unit production costs of US$5.2/boe during the period, the decline in oil prices still had a significant effect on its net profit after tax (NPAT), which was 50 per cent lower than the same period in 201.
Woodside CEO Peter Coleman said the company was in a strong financial position and continued to prioritise value growth while delivering “peer-leading” returns.
“Our operational performance is world class with LNG production consistently exceeding original design capacity.
Combined with the low cost of our operations and a continued focus on cost reduction we are in a robust position as oil price forecasts improve into 2017.
“Our pre-tax cost of debt remains at a competitive 2.9% with only US$125 million in debt facilities maturing before 2018. We continue to extend our debt maturity profile and further diversify our debt investor base to fund committed expenditure and growth.
“Moving forward, we will add significant production volumes from Wheatstone LNG to our portfolio in mid-2017 and further low-cost production from the Greater Enfield Project in 2019. Work continues on North West Shelf plateau extension projects with GWF-2 on track for start-up in the second half of 2019.
“We also see near-term opportunities to commercialise the SNE discovery in Senegal.
“In Myanmar we made back-to-back discoveries, increasing our contingent resources by 83 MMboe. Both discoveries are located close to existing infrastructure and markets and we are working through development options with significant appraisal work scheduled for next year.
“We have also been successful in rebalancing our global exploration portfolio and plan to drill a series of wells in 2017,” he said.