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UPDATE 1-Australia's Woodside reports 18 pct rise in annual profit

Published 14/02/2018, 10:03 am
© Reuters.  UPDATE 1-Australia's Woodside reports 18 pct rise in annual profit
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(Adds equity raising to fund Scarborough deal, revenue, comment from chief executive)

Feb 14 (Reuters) - Woodside Petroleum WPL.AX on Wednesday reported an 18 percent rise in annual profit and said it would acquire an additional 50 percent stake in the Scarborough gas field in Western Australia from Exxon Mobil Corp (NYSE:XOM) XOM.N for $444 million.

To fund its Scarborough expansion, Woodside said it would raise A$2.5 billion from shareholders. top oil and gas producer posted net profit of $1.02 billion for 2017, up from $868 million last year,

helped by higher oil and gas prices, and cost cuts. This missed estimates of $1.06 billion according to Thomson Reuters I/B/E/S, by a small margin.

Woodside declared a full-year dividend of $0.98 per share, up from $0.83 a share a year ago.

The company's operating revenue came in at $3.91 billion compared with $4.08 billion a year ago, underpinned by a rise in crude oil prices LCOc1 . Oil prices stand at around $62.56 per barrel.

The company maintained its forecast for 2018 output at 85 million to 90 million barrels of oil equivalent (mmboe) as production ramps up at the Wheatstone LNG project in Australia, operated by Chevron Corp (NYSE:CVX) CVX.N .

Woodside bought into the Wheatstone project in 2015 and expects it to contribute more than 13 million barrels of oil equivalent to annual output when it hits full capacity.

The company's fourth quarter output was boosted by one cargo from the first LNG production unit, or train, at Wheatstone. The plant's second train is due to start up in the June quarter of this year.

"The safe start-up of Wheatstone LNG Train 1 was a significant milestone for the company and we look forward to the delivery of LNG Train 2 and the domestic gas facility this year while supporting the operator to optimise lifting costs and maximise production rates." Woodside Chief Executive Peter Coleman said in a statement.

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