Shares in Woodside Petroleum (WPL) slumped yesterday, despite another sharp rise in world oil prices.
The reason was the surprise downgrading of it 2013 production guidance because of production problems at the Pluto gas project off the northwestern WA coast.
Woodside shares fell 3.4% or $1.21 to $34.36 after it revealed the 5% cut in its production forecast.
WPL 1Y – Woodside downgrade wipes gains
Woodside said planned 2013 LNG production would be now be no more than 89 million barrels of oil equivalent, after previously suggesting production could be as high as 94.
The slump is mostly due to an unplanned shutdown at the company’s Pluto LNG project and field.
The company didn’t detail the problems, nor did it explain a further problem at its Vincent field which were described as refurbishment over-runs.
Woodside shares had been steady around $35.30 for most of yesterday, but release of the news saw the stock plummet as low as $34.05 within minutes.
The news has eroded many of the gains made by Woodside shares late last week when the company continued its plan to internationalise its portfolio by buying into two offshore permits on the west coast of Ireland and the rise in oil prices which are up from around $UD95 a barrel in the past week for US type crude.
