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Australia's Woodside Q2 revenue down over a third on weak gas price

Published 16/07/2015, 11:01 am
© Reuters.  Australia's Woodside Q2 revenue down over a third on weak gas price
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SYDNEY, July 16 (Reuters) - Woodside Petroleum WPL.AX , Australia's biggest independent oil and gas company, on Thursday posted a 36 percent fall in

second-quarter revenue from the first quarter due to weak gas prices and lower production volumes from its Pluto LNG venture.

The sharp decline, which was in line with analysts' estimates, was blamed by Woodside on a 35 percent slide in liquefied natural gas prices after a drop in indexed prices to $64 per barrel.

The price was calculated based on a four-month lag between LNG prices and the Japanese crude import price on which long-term contracts are based.

The situation was compounded by an 18 percent decline in sales volume due to lower production at its Pluto LNG operation in Western Australia and the timing of shipments.

Woodside reported $898 million in sales revenue during in the quarter, down from $1.4 billion in the first quarter.

LNG revenues from the Pluto venture more than halved to $346 million in the second quarter.

Despite the setback, Woodside maintained its production target range of 86 to 94 million barrels of oil equivalent in 2015.

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