It won’t be the best looking interim result that Woodside Petroleum (WPL) releases to the market next month, judging by the second quarter and first half production report released yesterday.
The group has already cut its 2013 production guidance because of problems at its Pluto LNG operation off the NW coast of Western Australia and maintenance work at its Vincent oil field in the same area.
Now revenues and earnings look like coming in lower than expected.
Yesterday, Woodside told the market of a slide in revenue in the second quarter of the year due to a drop in oil prices and lower production as a result of those problems at Vincent.
Production was down 8.6% compared to the previous quarter. It produced 20 million barrels of oil equivalent in the June quarter, down from 21.9 million barrels in the March quarter and 20.1 million barrels in the June quarter of 2012.
Woodside said its June quarter revenue was $US1.35 billion ($A1.47 billion), down 6% from the same period last year, mostly due to the impact of maintenance work on its production ship in the Vincent oil field.
Earlier this month, the company cut its production target range for the year to 85 million to 89 million barrels of oil equivalent, down from its previous target range of 88 to 94 because of those unexpected problems at Pluto.
On top of that Woodside said it also expects its half year earnings report to contain around $US140 million ($152.26 million) in writedowns, mostly due to terminated projects.
Production also fell due to planned maintenance at the Pluto LNG plant and the North West Shelf project. And unplanned shutdown at Pluto also hit production.
Woodside said the average price in the June quarter was $US103.35 a barrel, down from $US108.76 a barrel for the same period in 2012. (The company reports in US dollars.)
Woodside shares fell 1c to $37.46.
WPL YTD – Maintenance hurts Woodside earnings
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