NEWS
Woodside's LNG production boosts revenues
Perth, Australia, Aug 17 (LNG journal)
- Woodside Petroleum Ltd, the Australian liquefied natural gas and oil and products company, reported that six-month profits before one-time items rose 20 percent to A$448.5 million (US$342m) compared with A$374.8m in the half-year period last year as production and revenue rose.
Woodside, which is the operator of Australia's first and largest LNG project, the A$14 billion North West Shelf Venture, said LNG production rose 44.2 percent compared with the corresponding period last year, with Train 4 contributing additional production during the six-month reporting time, following its start-up in September 2004.
"The overall improvement in profit was largely due to increased revenue from higher sales volumes and realized oil prices," Woodside said in the statement.
Oil and gas revenue at Australia 's No. 2 oil company increased 30 per cent to A$1.23 billion. The higher revenue was a result of stronger production and a 41 percent increase in average realised oil prices, Woodside said.
These benefits were partially offset by a 5 percent increase in the average A$/US$ exchange rate as all deals are US$ based.
Woodside's LNG plant, on the Burrup Peninsula, 1200km north of Perth, delivers to customers in Japan, South Korea, the US, Spain, Turkey, Italy and Belgium.
First-half 2005 reported profit was A$512.2m compared to A$748.5m in the same period of 2004 when A$373.7 million (after tax) was included for the one-off sale of Woodside's 40 percent equity in the Enfield area.
Woodside said it committed to four new projects in the first half of 2005, including the North West Shelf Phase 5 LNG expansion.
The NWS phase 5 includes construction of a fifth LNG train, associated infrastructure and a second loading jetty. Site works commenced this month and commissioning is due to start around mid-2008, with the first LNG cargoes planned for the fourth quarter of 2008.
On the supply of LNG to China , Woodside said all conditions for the gas sales agreement with the Guangdong Dapeng LNG Co. have now been satisfied and the integration of China National Offshore Oil Corporation (CNOOC) into the NWS Venture under the new China LNG (CLNG) joint venture continues to plan.
In the second quarter of 2006, the new umbrella company CLNG is scheduled to supply the first product to Guangdong in south-east China . CNOOC holds a 25 percent stake in the CLNG company, with each existing NWS Venture participant holding 12.5 percent.
Shares in Woodside rose in Sydney about 10 cents to A$33.48 after the earnings statement was published.
