Woodside Lifts Output Forecast as Revenue Soars

(Photo: Woodside Energy)
(Photo: Woodside Energy)

Woodside Energy Group Ltd raised its annual production outlook on Thursday after posting record revenue as it benefited from firmer energy prices and its merger with BHP Group's petroleum assets, sending its shares soaring.

The company became a top-10 global independent oil and gas producer after its merger with BHP's petroleum arm was finalized this year, helping it double its output.

Woodside gained from weaker energy supplies following the Ukraine war, which pushed liquefied natural gas prices to new highs and forced buyers to scramble for alternate supplies from countries like Australia.

It now expects to produce between 153 million barrels of oil equivalent per day (mmboe) and 157 mmboe over 2022, up from its July forecast of 145 mmboe to 153 mmboe.

Shares of the company rose as much as 7.2% to A$34.895 and were set for their best day since March, if the gains held. The broader energy stocks index was 3.5% higher.

Woodside also said it produced 51.2 mmboe during the quarter, the first full quarter of production since its merger with BHP's petroleum arm, compared with 22.2 mmboe a year earlier.

The company was able to charge an average price of about $102 per barrel of oil equivalent (boe) in the September quarter, nearly twice the $59 per boe last year.

This, along with the newly acquired BHP assets, helped boost quarterly revenue to $5.86 billion, from $1.53 billion a year ago.

Woodside also said its Sangomar oil and gas project in Senegal was 70% complete at the end of September, with first production targeted for the latter half of 2023.

Its "crown jewel" — the $5.7 billion Scarborough gas project— which holds about 11 trillion cubic feet of gas and the Pluto Train 2, was 21% complete, Woodside said, with the first LNG cargo targeted for 2026.

(Reuters - Reporting by Harshita Swaminathan and Roushni Nair; Editing by Shounak Dasgupta, Vinay Dwivedi, and Uttaresh.V)

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