ASX Announcement
Thursday, 19 January 2017
ASX: WPL OTC: WOPEY
Woodside Petroleum Ltd.
ACN 004 898 962
Woodside Plaza
240 St Georges Terrace Perth WA 6000 Australia
www.woodside.com.au
FOURTH QUARTER REPORT FOR PERIOD ENDED 31 DECEMBER 2016
Operational excellence
Annual production result of 94.9 MMboe, 3% higher than 2015 and the second highest ever achieved.
Record annual LNG production of 63.7 MMboe, more than 9% higher than the previous record set in 2014.
Reliability exceeded 99% for the second consecutive quarter at Karratha Gas Plant, Pluto LNG and offshore gas facilities.
Sales revenue up on previous quarter driven by strengthening oil price.
2016 capital expenditure was US$1.4 billion,1more than US$250 million lower than previous guidance.
Managing risk and volatility
Secured drilling equipment and services at competitive rates for 2017 Australian, Myanmar and Senegal drilling campaigns.
Contracted five uncommitted LNG cargoes under a mid-term sales agreement.
Creating and building near-term value growth
Completed well development activities for Persephone Project ahead of expected start-up in Q3 2017.
Completed acquisition of ConocoPhillips' interests in Senegal for approximately US$2.20/bbl.
Completed acquisition of half of BHP Billiton's Scarborough area assets for approximately US$0.90/boe.
Woodside CEO Peter Coleman said the fourth quarter results highlighted excellent performance by the company.
"Woodside starts 2017 in a strong position. Our business margins have improved through 2016 and our 2017 budget is free cash flow neutral at US$35 per barrel.2
"Production performance has been outstanding, with the team consistently delivering world-class operational performance. LNG production system reliability has now exceeded ninety-nine per cent for a second consecutive quarter.
"The Wheatstone project is approaching LNG Train 1 construction completion, all modules are on-site and final hook-up and commissioning has commenced. We look forward to adding production from Wheatstone in the middle of this year. Wheatstone is a key component of our near-term growth strategy and will contribute more than 13 MMboe of annual production once both trains are fully operational.
"We are about to start significant appraisal work in Senegal and Myanmar complemented by exploration in Australia, Senegal and Myanmar. In parallel, the Greater Enfield project is progressing to plan, including the manufacture of subsea equipment," he said.
Contacts:
MEDIA Michelle Grady W: +61 8 9348 5995 M: +61 418 938 660 E: michelle.grady@woodside.com.au | INVESTORS Damien Gare W: +61 8 9348 4421 M: +61 417 111 697 E: investor@woodside.com.au |
Excludes acquisitions and capitalised exploration.
Free cash flow is cash flow from operating activities less cash flow from investing activities.
Production 7
Investment Expenditure 8
Data Tables 919 January 2017
Sales Revenue
Strengthening oil price increasing sales revenue1,200
Previous quarter
(Q3 2016 to Q4 2016)
1,100
US$ million
1,000
900
800
700
600
988
73-52
1
1,009
Higher realised prices reflect strengthening oil price in H2 2016.
Compared to Q3 2016:
average realised price increased by 7%
NWS LNG realised price increased by 17%
Pluto LNG realised price increased by 4%.
1,200
1,100
Q3 2016 Realised price Sales Q4 2016
Corresponding period
Increase in LNG contract prices for Q1 2017 expected due to the strengthening oil price and lag in oil-linked pricing formulas for existing LNG contracts.
US$ million
(Q4 2015 to Q4 2016) 1,105 -54 | ||||
-42 1,009 | ||||
1,000
900
800
700
600
Q4 2015 Realised price1
Sales Q4 2016
1. Includes exchange rate impact.
19 January 2017 Woodside fourth quarter 2016 report 2
Production
Record Q4 LNG production. Outstanding LNG reliabilityPrevious quarter
30 (Q3 2016 to Q4 2016)
MMboe
25
25.2 -0.6 -0.3 -0.5 -
23.8
20
15
Q3 2016 LNG Liquids1 Other 2 Discontinued
operations3
Corresponding period
30
(Q4 2015 to Q4 2016)
MMboe
25
24.9 0.5 -0.8 -0.2-0.6
Q4 2016
23.8
Record LNG production for Q4, exceeding by 3% the Q4 result in 2015.
LNG reliability at both NWS and Pluto exceeded 99%.
Annualised Pluto LNG production rate of 5.0 mtpa.4
Production lower than Q3 2016 due to:
higher ambient temperatures impacting LNG capacity
execution of the planned turnaround at Vincent (oil).
20
15
Q4 2015 LNG Liquids 1
Other2
Discontinued operations3
Q4 2016
Liquids includes oil and condensate.
Other includes NWS pipeline gas, LPG and Canada pipeline gas.
Discontinued operations include Balnaves and Laminaria-Corallina.
100% project.
19 January 2017 Woodside fourth quarter 2016 report 3
Woodside Petroleum Ltd. published this content on 18 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 18 January 2017 22:41:07 UTC.
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