Woodside lifts guidance as LNG outperforms
Woodside has seen first-half revenues spike year on year by 25 per cent as it ramps up the Wheatstone LNG project and lifts its 2018 guidance levels.
Woodside recorded a half-year net profit of $US541 million ($747 million), which was driven by higher production levels at its Pluto LNG and Wheatstone LNG train 1 projects in Western Australia.
Its cash flows lifted 25 per cent in the first half of 2018, compared to the previous period, rising to $US1.54 billion.
Woodside also slightly lifted its 2018 production guidance, from 85 to 90 million barrels of oil equivalent to between 87 and 91 MMboe.
The company says it is focused on hitting a targeted annual production rate of 100 MMboe in 2020.
Woodside chief executive Peter Coleman said the company is now preparing to enter a major growth and construction phase at its West Australian gas developments.
“Our base business has performed strongly, with Pluto LNG exceeding 99 per cent reliability,” Mr Coleman said.
“Wheatstone LNG train 1 has achieved above nameplate [top level] production rates and train 2 is ramping up as planned. Our Greater Western Flank 2 and Greater Enfield projects have progressed toward anticipated start ups in early and mid-2019 respectively.”
The oil and gas company has announced an interim fully franked dividend of US 53 cents per share.
Woodside set a record date of August 24 and a payment date of September 20.
Analysts welcomed the results, although there was little surprise at Woodside's performance.
"A solid result from Woodside, with most line items in line with our forecasts, underlying the stability of the base operating business," RBC Capital Markets analyst Ben Wilson said.
"The small increase in 2018 production guidance is consistent with our pre-existing forecast of 89 MMboe, at the midpoint of the upwardly revised guidance range. We retain our Underperform rating on Woodside as the stock was tracking up recently with oil price moves.
"Notwithstanding the company’s low cost base and stable production performance, we think there are better or higher levered ways to play a firming oil price environment."
Woodside closed trading on Tuesday 36.28.