Woodside Petroleum profit falls 41 per cent to $1.94 billion for 2013

OIL giant Woodside Petroleum’s profit fell 41.4 per cent in its full year results. But it still made a mammoth $1.94 billion.

Oil and gas producer Woodside Petroleum has recorded a 41.4 per cent fall in full year ne

OIL and gas producer Woodside Petroleum has recorded a 41.4 per cent fall in full year net profit to $1.94 billion.

But the result for 2013 was still the second-highest in the company's history.

The previous year's result was inflated by the sale of a stake in its Browse liquefied natural gas project.

The company said the 2013 result was underpinned by record annual production of 87 million barrels of oil equivalent (mmboe), up 2.5 per cent on the previous year's 84.9 mmboe.

Woodside’s shareholders will receive a final dividend of $US1.03 a share, up 58 per cent on 2012 but below analysts’ expectations. The full year dividend of $US2.49 a share was a record high and up 92 per cent on the previous year.

A strong dividend had been flagged last month when the company revealed it would collect a $US200 million to $US250 million petroleum resource rent tax benefit and had enjoyed a surge in revenue due to price rises at its Pluto LNG project in Western Australia.

The profit was roughly in line with analysts expectations.

Woodside had generated free cash flow in 2013 of $US2.27 billion and $5.91 billion in the last two years.

At the same time, it has reduced investment expenditure by 52 per cent to $US851 million which, it said, demonstrated a rigorous approach to capital management.

Net debt was down 20 per cent to $US1.54 billion, with gearing — a measure of equity-capital to borrowings — a low 9.0 per cent, down from 11 per cent.

Woodside reaffirmed 2014 production guidance of an increase to 86 to 93 mmboe.

Woodside chief executive Peter Coleman said the underlying profit had been negatively impacted by a higher proportion of lower priced gas volumes, which saw a decline in average realised pricing.

Impairments of $US387 million on late life oil assets also affected the result.

“We have generated $5.9 billion in free cash flow over the past two years,” Mr Coleman said.

“This has enabled us to pay back debt and reward our shareholders through increased dividends.” Importantly, it also provides the financial base for our next phase of growth.”

###