WOODSIDE ENERGY GROUP LTD HALF-YEAR REPORT 2016
INCORPORATING APPENDIX 4D 30 JUNE 2016
CONTENTS
Page | ||
ABOUT THIS REPORT | 1 | |
ABOUT WOODSIDE | 1 | |
DIRECTORS' REPORT | ||
Financial overview | 2 | |
Review of operations | 4 | |
REVIEW OF OPERATIONS | 6 | |
Operations | North West Shelf | 7 |
Pluto LNG | 8 | |
Australia Oil | 8 | |
Projects and Developments | North West Shelf | 10 |
Wheatstone LNG | 10 | |
Greater Enfield Project | 11 | |
Browse Development | 11 | |
Kitimat LNG | 11 | |
Sunrise LNG | 11 | |
Global exploration | Global exploration | 13 |
Australia and Asia-Pacific | 14 | |
Atlantic Margins | 15 | |
Sub-Saharan Africa | 15 | |
Latin America | 15 | |
DIRECTORS' REPORT | ||
Business management | Capital expenditure | 16 |
Capital management | 16 | |
Productivity program | 16 | |
Business opportunities | 17 | |
Governance | 18 | |
HALF-YEAR FINANCIAL REPORT | 19 | |
DIRECTORS' DECLARATION | 30 | |
INDEPENDENT REVIEW REPORT | 31 | |
APPENDIX 4D | 32 | |
SHAREHOLDER INFORMATION | 33 | |
GLOSSARY | 34 | |
HALF-YEAR REPORT 2016
INCORPORATING APPENDIX 4D 30 JUNE 2016
ON THE COVER - MAXIMISING VALUE
Improvements delivered during the successful Karratha Gas Plant turnaround will further increase export capacity. Average annual export capacity of 16.9 mtpa is
now 13% above the original design capacity of 14.9 mtpa.
Successful delivery of our turnarounds at both onshore and offshore assets is critical to
Woodside's vision of becoming a global leader in upstream oil and gas.
See page 7 for further information.
ADDITIONAL INFORMATION
In this report, we have indicated where additional information is available online and in other sections of this report
like this .
A glossary of key terms, units of measure and conversion factors is on page 34.
Appendix 4D
Results for announcement to the market
Further details on page 32.
US$ million | ||||
Revenues from ordinary activities | decreased | 24.2%1 | to | 1,938 |
Net profit for the period attributable to members | decreased | 49.9%1 | to | 340 |
Dividends (distributions) | ||||
Interim dividend - fully franked (US cents per share) | 34 cps 1H 2016 | |||
Record date for determining entitlements to the dividend | 30 August 2016 | |||
1. Comparisons are to the half-year period ended 30 June 2015. | ||||
ii WOODSIDE PETROLEUM LTD | HALF-YEAR REPORT 2016
ABOUT THIS REPORT
This Half-Year Report 2016 is a summary of Woodside's operations, activities and financial position as at 30 June 2016.
Woodside Petroleum Ltd
About Woodside
(ABN 55 004 898 962) is the parent
company of the Woodside group of companies. In this report, unless otherwise stated, references to
'Woodside', 'the company', 'the Group', 'we', 'us' and 'our' refer to Woodside Petroleum Ltd and its controlled entities as a whole. The text does not distinguish between the activities of the parent company and those of its controlled entities.
References to '1H' refer to the first half of the year, i.e. the period between
1 January and 30 June 2016. All dollar figures are expressed in US currency unless otherwise stated. Production and sales volumes, reserves and resources are quoted as Woodside share.
Defined terms and abbreviations can be found on page 34.
This report should be read in conjunction with the Annual Report 2015 and the Sustainable Development Report 2015, available on Woodside's website, www.woodside.com.au.
Woodside is Australia's largest independent oil and gas company with a global presence, recognised for our world-class capabilities - as an explorer, a developer, a producer and a supplier.
Our mission is to deliver superior shareholder returns through realising our vision of becoming a global leader in upstream oil and gas.
Our assets are renowned for their safety, reliability and efficiency, and we are Australia's most experienced liquefied natural gas (LNG) operator. We operate 8% of global LNG supply1.
Our producing assets in Australia include the landmark North West Shelf (NWS) Project, which has been operating since 1984. In 2012, we commenced production from the Pluto LNG Plant and will add additional volumes from our non-operated Wheatstone LNG interests in mid-2017.
We also operate a fleet of floating production storage and offloading (FPSO) vessels. From mid-2019, we will add additional oil production from the Greater Enfield Project via our existing Ngujima-Yin FPSO vessel.
We continue to expand our capabilities in marketing, trading and shipping and have enduring relationships that span more than 25 years with foundation customers throughout the Asia-Pacific region.
Our global exploration portfolio includes emerging and frontier provinces in Australia and the Asia-Pacific region,
the Atlantic Margins, Sub-Saharan Africa and Latin America.
We have significant equity interests in high-quality development opportunities in Australia (Browse), Canada (Kitimat) and Myanmar and are pursuing new concepts, technology and contracting strategies to enable the earliest commercialisation of these resources.
We believe that technology and innovation are essential to bringing down costs
and unlocking future growth. Today, we are pioneering remote support and the application of artificial intelligence and advanced analytics in our operations.
We recognise that long-term meaningful relationships with communities are fundamental to maintaining our licence
to operate, and we work to build mutually beneficial relationships.
Woodside is characterised by strong safety and environmental performance in all locations where we are active and we are committed to upholding our values of integrity, respect, working sustainably, discipline, excellence and working together.
Our proven track record and distinctive capabilities are underpinned by more than 60 years of experience, making us a partner of choice.
Source: WoodMac LNG Tool.
WOODSIDE PETROLEUM LTD | HALF-YEAR REPORT 2016 1
Directors' Report
FINANCIAL OVERVIEW
MMboe
US$ million
US$/boe
US$ million
The directors of Woodside Petroleum Ltd present their report and the consolidated financial report for the half-year ended 30 June 2016 as follows:
PRODUCTION VOLUME 9%higher We delivered production of 45.9 MMboe, which was 9% higher than in 1H 2015, primarily due to higher LNG capacity and availability. Pluto LNG annualised loaded production rate of 4.9 mtpa (total project) was 14% higher than expected at FID. 45.9 42.0 1H 1H 2015 2016 | SALES REVENUE $1.8 billion First half sales revenue was 22% lower than in 1H 2015, mainly due to lower average realised prices, partly offset by higher sales volumes and favourable price review outcomes. This emphasises the resilience of our sales revenue, as benchmark oil prices1 fell by 46% from 1H 2015 to 1H 2016. 2,305 1,807 1H 1H 2015 2016 1. Three month lagged Japan Customs-cleared Crude (JCC). | UNIT PRODUCTION COST 38%lower Our unit production cost of US$5.2/boe was 38% lower than in 1H 2015. This was primarily driven by operational efficiencies, higher throughput, asset management and the impact of the Pluto turnaround in 1H 2015. 8.4 5.2 1H 1H 2015 2016 | REPORTED PROFIT $340 million Profit was down on 1H 2015 mainly due to Brent oil price reaching cycle lows of US$28/bbl at the start of 2016. Lower sales revenue was partly offset by lower production costs. 679 340 1H 1H 2015 2016 |
1H 2016 PRODUCTION VOLUME MMboe %* 45.9 MMboe Total 45.9 *Small differences are due to rounding. | 1H 2016 SALES REVENUE US$m % 1,807 US$m Total 1, 807 | ||
LNG | 30.1 66 |
LPG | 0.4 1 |
Oil | 3.4 7 |
Pipeline gas | 7.6 16 |
Condensate | 4.4 10 |
LNG | 1,329 | 74 |
LPG | 16 | 1 |
Oil | 143 | 8 |
Pipeline gas | 151 | 8 |
Condensate | 168 | 9 |
2 WOODSIDE PETROLEUM LTD | HALF-YEAR REPORT 2016
Woodside Petroleum Ltd. published this content on 18 August 2016 and is solely responsible for the information contained herein.
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