Australia’s largest independent oil and gas company, Woodside Petroleum Ltd [ASX:WPL] share price is down 1.3% at the time of writing today, after releasing their first quarterly report for 2021.
Higher oil and gas prices bring in more revenues
Production was down 2% from 1Q 2020 at 23.7 MMBoe because of bad weather, while sales volume was up 8% from the same quarter last year at 25.7 MMboe.
Sales revenue for the quarter was up 22% when compared to the last quarter at $1,121 million, and 4% higher than the same quarter the previous year.
This was mainly because of higher oil and gas prices.
Woodside Acting CEO Meg O’Neill said:
‘Production on our oil assets was impacted by heavy weather in the quarter but this was offset by an increase in our average realised price to a level comparable to Q1 2020. Woodside achieved record spot LNG prices and its highest price premium for an oil cargo during the period. More importantly, the sustained increase in oil and gas prices reflects the rebound in demand as economic conditions improved across Asia. The swift rebalancing of markets after the disruptions of 2020 further underpins our positive outlook for LNG in the medium term.’
Woodside got an average realised price for liquified gas of $40 per barrel of oil equivalent for the quarter, up from $28 in the previous quarter. While for oil, average realised price was $72 a barrel, higher than the $51 they fetched in the December quarter.
Earlier this year, Woodside signed a sale and purchase agreement with RWE to supply them with 840,000 tonnes of liquified natural gas (LNG) per year. The deal starts in 2025 and has a duration of seven years.
O’Neill said today the deal was ‘another demonstration of customer appetite for new LNG supplies around the middle of this decade.’
Even with good results, Woodside shares are down today
Woodside shares are trading at $22.71 at time of writing, a 1.3% drop from yesterday’s close.
It’s likely to do with the fact that oil prices dipped overnight because of rising US oil stocks and a resurgence of the virus in India, which is one of the largest oil consumers in the world.
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