Woodside profits fall, savings in pipeline

Woodside CEO Peter Coleman

Woodside CEO Peter Coleman

Woodside has outlined a comprehensive savings plan aimed at reducing the firm’s external spending.

The company’s 1H, 2015 results were published today.

Woodside reported a 2015 half-year net profit after tax of approximately $A925 million, down 39 per cent on the previous corresponding quarter.

The result was underpinned by production of 42 MMboe and operating revenue of approximately $A3.4 billion, down 28 per cent due to lower commodity prices and reduced sales volumes.

Woodside Chief Executive Officer Peter Coleman said the financial results reflected the impact of the fall in commodity prices over the past year.

“Our half-year profit is down 39 per cent on the same period last year as a direct result of the fall in oil price over the period,” Mr Coleman said.

“However, we have achieved some significant milestones this year which are part of our strategy to transform the business.”

Mr Coleman added that with the purchase of Apache Energy’s interests in the Chevron-operated Wheatstone Project, as well as interests in the Balnaves and Kitimat oil fields, the company has substantially increased its reserves and production capacity while de-risking future growth.

The firm’s results presentation went on to say the company is on track to achieve savings across all facets of the business and will continue to seek sustainable cost efficiencies in external spend and capital costs.

Woodside has earmarked an approximate $115 million saving in operating expenditure and a $180 million saving in capital expenditure for 2015 while it also executes a leaner organisational structure and “culture changing” to improve efficiencies.

Meanwhile, the company noted a 5 per cent increase in volumes from existing assets from improvements on efficiencies by the end of 2015.

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