Woodside Energy's first-half profits drop on lower oil prices
Woodside Energy, based in Australia, reported a 14 percent drop in first-half profits on Tuesday due to price volatility and lower realized oil prices.
Oil prices have been choppy due to supply chain disruptions caused by tensions in the Middle East, and China's economic recovery is being hampered by weak domestic consumption.
Woodside's average realized prices for the first half of the year fell from $74 per barrel of oil equivalent to $63 in comparison with the same period the previous year.
The largest independent energy company in the country posted a net profit of $1.63bn for the six-month period ended June 30. This compares to $1.90bn a year earlier and beat Visible Alpha's consensus estimate of $1.3bn.
In a press release, Chief Executive Meg O'Neill stated that "we maintained high reliability at 97.9% for our operated LNG assets" and continued to manage costs in an inflationary climate.
The company announced an interim dividend at 69 UScents per share. This is down from 80 UScents a year earlier. It also reaffirmed the production and expenditure forecast for the full year.
Woodside, who had signed a $1.2 billion deal last month to purchase U.S. developer Tellurian, including its Gulf Coast Driftwood project, has said that the deal strengthens their portfolio by adding exposure to the Atlantic basin.
The company said that the acquisition of Tellurian, and OCI Global’s clean ammonia projects, which were both under investors' radar due to concerns about investment returns, "have significant potential cash generation to support long-term shareholder values". (Reporting and editing by Mohammed Safi Shamsi in Bengaluru, Himanshi Akhand, and Roshan Thomas)
(source: Reuters)
