Woodside’s revenue drops on lower LNG prices

Australia’s Woodside reported a 42 percent year-on-year plunge in sales revenue due to lower realised LNG prices, but expects stronger prices this quarter.

The Perth-based LNG firm said revenue dropped to $699 million from $1.16 billion a year earlier. It also declined 9 percent from the previous quarter.

Despite the slide in revenue, Woodside’s output rose to 25.3 million barrels of oil equivalent from 24.9 mmboe last year.

Earlier this year, Woodside slashed jobs and placed its two projects on hold as oil and LNG prices crashed due to the Covid-19 pandemic.

“As expected, sales revenue in the third quarter was impacted by lower realised LNG prices, reflecting the oil price lag in many of our contracts,” Woodside chief Peter Coleman said.

However, Coleman expects stronger prices in the fourth quarter and in the first quarter next year given the improvement in oil price in recent months.

“In particular, I am encouraged by the strengthening Asian LNG spot price, which is now above $6.50/MMBtu for December deliveries,” he said.

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