Woodside Petroleum (ASX:WPL) reveals record quarterly sales revenue

• Woodside Petroleum (WPL) reveals the highest quarterly sales revenue on record for the final quarter of 2021
• For the period ending December 31, the company reported sales revenue of US$2.8 billion (A$3.8 billion), marking an 86 per cent increase on the prior quarter
• CEO Meg O’Neill says the increase was underpinned by a 22 per cent increase in sales volume as well as significantly stronger average realised prices
• Production was up 2 per cent on November, however down by around 9 per cent on 2020 and takes full year production to below record levels
• Shares have been trading up 0.63 per cent to $25.58

Woodside Petroleum (WPL) has revealed its highest quarterly sales revenue on record for its last quarter of 2021.

For the period ending December 31, the company reported sales revenue of US$2.8 billion (A$3.8 billion), marking an 86 per cent increase on the prior quarter and the highest quarterly sales revenue on record.

This is up from US$920 million (A$1.27 billion) in the December quarter of 2020.

In the quarterly update, the company’s CEO Meg O’Neill attributed the strong revenue to increased product pricing, executing the binding share sale agreement with BHP for the proposed merger, taking final investment decisions on the Scarborough and Pluto Train 2 projects and progressing the strategy for new energy investment.

“The 86 per cent increase in sales revenue for the quarter was underpinned by a 22 per cent increase in sales volume as well as significantly stronger average realised prices,” she said.

With the upward trajectory in global oil and gas prices, the average realised price increased to $90 per barrel of oil equivalent, up 53 per cent from quarter three, 2021.

Production was up to 22.6 millions of barrels of oil equivalent (mmboe), a two per cent increases quarter on quarter, however a drop of over nine per cent on the prior corresponding period.

Increased production was noted at the company’s NWS and Pluto projects however was lower at Wheatstone due to commissioning activities for Julimar-Brunello phase two and lower utilisation of offshore capacity.

This takes full-year production down to 91.1mmboe from 100.3mmboe in 2020. While production is expected to improve in this financial year, Woodside’s production guidance is still less than 2020 levels to between 92 – 98 MMboe, excluding any impact from the proposed merger with BHP’s petroleum business.

Woodside’s full-year report is expected to be available by Thursday, February 17.

Shares were up 0.63 per cent to $25.58 at 1:18 pm AEDT.