Woodside flags $400m writedowns for 2013 results

Woodside has warned of up to $400 million in writedowns ahead of its 2013 full year earnings result next month.

Woodside has foreshadowed $400m in writedowns ahead of its 2013 full year results. Picture: AP

ENERGY giant Woodside Petroleum has flagged up to $400 million in writedowns ahead of the release of its 2013 full year earnings result next month.

Australia's largest pure play petroleum producer said the impairment on its WA offshore oil and gas fields includes adjustments to the carrying values of Stybarrow, Enfield and Laminaria Corallina.

However, it will be offset by a benefit of up to $250 million on the petroleum resource rent tax, through deductions carried forward.

Woodside reported sales revenue of $5.8 billion for the 2013 year, down 7.2 per cent on the previous year's $6.2 billion. The fall was due to the company selling a higher proportion of gas volumes than oil, resulting in lower average realised prices. Still, the company achieved record oil and gas production and maintained its 2014 full year production guidance in the target range of 86 to 93 million barrels of oil equivalent (mmboe). Woodside's annual production in 2013 was 87 mmboe, up 2.5 per cent on 2012 and sales of 85.7 mmboe, up 2.3 per cent.

The company finished the year strongly, lifting sales revenue in the December quarter by more than 23 per cent from the previous quarter to $1.65 billion.

Production volumes were also 5.9 per cent higher than the previous quarter at 23.2 mmboe and sales volumes were up 10 per cent to 23 mmboe.

The rises came from both increased production and price adjustments to sales contracts for volumes already delivered by the Pluto project, which has become its biggest producer.

In 2014, oil production would benefit from its commissioning and ramping up of its Vincent floating production, storage and offloading unit offshore of Exmouth in Western Australia, Woodside said.

The company said the $2.5 billion Greater Western Flank phase 1 North West Shelf project is almost two thirds complete.

Woodside added that it expects the Israeli government to finalise its tax policy setting for gas export projects in the first half of 2014.

As a result it expects to make a final investment decision on the Leviathan project in Israel in the first half of 2014.

Shares in the company were 80 cents, or 2.1 per cent, higher at $38.44 at 1150 AEDT.

The company will release its full year earnings result on February 19.

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