Woodside Petroleum productions levels begin to recover from COVID-19 economic shock
Woodside Petroleum says oil production levels are recovering from the initial COVID-19 shock.
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Woodside Petroleum says its production volumes are beginning to recover despite slumping global energy prices causing sales revenue to drop.
In a second quarter update lodged to the Australian Stock Exchange on Wednesday, Woodside said it had produced 25.9 million barrels of oil in its second quarter, a rise of 7 per cent compared with the first quarter of the 2020 calendar year.
The major company posted a sales revenue of $768 million over the period, a 29 per cent decline compared with the previous corresponding period.
Woodside chief executive Peter Coleman said “unprecedented” challenges had arisen in the first half of the year, including the economic fallout from the coronavirus pandemic and the damage caused by tropical cyclone Damien upon its West Australian operations.
“We have implemented the cost-saving measures announced at the end of the last quarter and are preparing our future growth projects to proceed when market conditions improve,” Mr Coleman said.
Woodside on Tuesday notified shareholders that the financial ruptures caused by COVID-19 had prompted the group to recognise a non-cash impairment loss of $3.92 billion, largely driven by the significant reduction in global oil and natural gas prices.
“We’ve taken some tough decisions over recent months in response to the COVID-19 pandemic and oversupply in our key markets,” Mr Coleman said.
“Woodside’s focus remains on cash preservation, capital discipline and maintaining the strength of our balance sheet.”
Equity researchers at Goldman Sachs noted investors likely had already factored in the global price drop following the onset of COVID-19, with growth projects in Scarborough and Browse the most attractive opportunities within the company.
Originally published as Woodside Petroleum productions levels begin to recover from COVID-19 economic shock