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.

Most Popular

Yang Ming books LNG-powered containerships in South Korea

Taiwan’s Yang Ming Marine Transport has decided to order LNG dual-fuel container vessels from South Korea's Hanwha Ocean as part of its ongoing fleet optimization plan.

Sabah to take stake in Petronas’ third FLNG

SMJ Energy, owned by the Sabah government, has signed a heads of agreement with Malaysian energy giant Petronas to take a 25 percent stake in the latter's third floating LNG production unit.

Japan’s LNG imports drop in June

Japan’s liquefied natural gas (LNG) imports dropped by 2.8 percent in June compared to the same month last year, according to provisional data released by the country’s Ministry of Finance.

More News Like This

Woodside inks LNG collaboration pact with Hyundai Engineering, Hyundai Glovis

Australian LNG player Woodside has signed a non-binding memorandum of understanding with South Korea's Hyundai Engineering and Hyundai Glovis, establishing a strategic framework to collaborate on LNG project development, engineering services, and shipping logistics.

Great Lakes clinches Louisiana LNG dredging gig

US firm Great Lakes Dredge & Dock has secured a dredging contract from compatriot Bechtel for dredging work on Woodside's Louisiana LNG project.

Woodside, Stonepeak wrap up Louisiana LNG stake sale

Australian LNG player Woodside has completed the previously announced sell-down of a 40 percent stake in its Louisiana LNG project to US private equity firm Stonepeak.

Woodside, Jera ink non-binding winter LNG supply deal

A unit of Australian LNG player Woodside and Japan's Jera have entered into a non-binding heads of agreement for the sale and purchase of LNG cargoes during Japan’s peak winter period.