Woodside’s revenue slides as it logs record LNG price

Australia’s Woodside reported a 34 percent year-on-year plunge in sales revenue due to lower realised prices, but it also agreed its highest-ever spot LNG price for delivery in the coming quarter.

The Perth-based LNG firm said quarterly revenue dropped to $920 million from $1.4 billion a year earlier.

Howevher, sales revenue increased 32 percent compared to the previous quarter on the back of higher oil and gas prices.

“Oil and gas prices have strengthened considerably heading into the first quarter of 2021. We agreed to our highest ever spot LNG price for delivery in the coming quarter, surpassing our previous record set in 2012,” Woodside chief Peter Coleman said.

“Similarly, Vincent crude and Wheatstone condensate are also being priced at all-time record premiums to Brent, compounding the impact of the sharp increases in crude pricing and reflecting continued improving economic conditions in much of Asia,” he said.

Woodside did not reveal the record spot price but Asian LNG prices have this year skyrocketed due to a cold snap to more than $30 per mmBtu with one deal reportedly reaching $39.30 per mmBtu.

The Australian firm said its average LNG price reached 28$/boe in the fourth quarter. This compares with 23$/boe in the third quarter and 47$/boe in the same quarter last year.

Looking at production, Woodside’s output also declined to 24.9 million barrels of oil equivalent when compared to 25.7 mmboe in the last quarter of 2019.

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