Woodside Share Price: Sales Revenue Up 19% (ASX:WPL)

Today, Woodside Petroleum Ltd [ASX:WPL] released its September quarter results, with sales revenue rising despite a 2% drop in delivered production.

Woodside Petroleum Ltd [ASX:WPL] share price is currently exchanging hands for $24.19 a share, a dip of 1.35%.

ASX WPL - Woodside Share Price Chart

Source: Tradingview.com

Woodside’s September quarter

Woodside posted sales revenue of US$1.53 billion, up 19% from Q2 2021, on the back of stronger average realised LNG prices.

Woodside’s average realised price rose to $59 per barrel of oil equivalent, up 28% from Q2 2021.

LNG sales were 27% higher than the preceding quarter even despite planned maintenance activities impacting production.

Delivered production slipped 2% to 22.2 MMboe during the September quarter.

Woodside noted the upward trajectory of oil and gas prices, reflecting a broad rebound in demand as economic activity picked up in Asia.

Management also said that:

Short-term gas prices in Europe and Asia have experienced unmatched and sustained increases in both value and volatility with pricing indices in both markets recently reaching all-time highs.

Woodside Presentation

Source: Woodside presentation

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Woodside outlook

WPL expects to benefit from stronger realised prices in the fourth quarter, reflecting the oil price lag in many of Woodside’s contracts and recent increases in gas hub prices.

Woodside’s production guidance remains unchanged at 90–93 MMboe.

The energy firm also updated investors on the proposed merger with BHP’s petroleum business. WPL said the merger is progressing as planned, expecting execution of a share sale agreement next month.

Woodside’s quarterly coincided with Santos Ltd [ASX:STO] also releasing its third quarter results.

Santos posted record quarterly revenue as the LNG price surged.

STO registered total sales revenue of $1.14 billion in Q3 2021, up from $1.08 billion in Q2 2021.

But while a global energy crunch is sending prices of commodities like oil and gas higher, another commodity vital to Australia’s economy is lagging — iron ore.

Iron ore is Australia’s biggest export and China accounts for 80% of our iron ore exports by volume, a perilous situation for Australia’s economy as our divorce from China sours.

With China seeking to diversify away from our exports and Brazil ramping up production, the medium-term outlook for iron ore prices — and Australia’s resources-dependent economy — is bleak.

But the deeper ramification lies with the Reserve Bank, which will likely keep rates at record lows to offset Australia’s falling terms of trade.

The repercussions go well beyond the iron ore miners and the resources sector — what our Editorial Director Greg Canavan calls ‘Life at Zero’, is here to stay, and in his latest report, he shows you how to adjust your portfolio accordingly.

If you are interested, read the report here.

Regards,

Kiryll Prakapenka,
For The Rum Rebellion

PS: The Rum Rebellion is a fantastic place to start your investment journey. We talk about the big trends driving the Australian Economy. Learn all about it here.

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