Woodside Petroleum today reported a record $1.58 billion net annual profit.
Key Points
• Record reported net profit after tax of $1,575 million, up 6.9% (2009: $1,474 million).
• Underlying profit after tax of $1,418 million, up 34.8% (2009: $1,052 million).
• Annual sales revenue of $4,193 million up 20.2% (2009: $3,487 million) despite the lower sales volume of 72.2 million barrels oil equivalent (2009: 80.7 MMboe), largely due to higher commodity prices and the positive conclusion of certain LNG pricing negotiations.
• A final dividend of US55 cents per share (cps) was declared, fully franked (2009: US49 cps). The 2010 dividend totals US105 cps, fully franked (2009: US95 cps).
• Production of 72.7 MMboe in line with guidance (2010 target range: 70 – 75 MMboe), but down 10.1% (2009: 80.9 MMboe), largely due to the Otway sale in March 2010 and oil-field natural decline.
• Reserves replacement ratio remains strong at 148%, up 1.4% (2009: 146%). Proved plus Probable reserves at the end of 2010 were 1,680.1 MMboe, up 1.7% (2009: 1,651.2 MMboe). Proved plus Probable reserve to production ratio has increased to 24 years.
• Strong balance sheet to fund growth, $1,725 million in undrawn debt facilities and $963 million in cash.
• Pluto LNG Project (Train 1) was more than 95% complete at year end, with start-up targeted for August 2011 and first LNG one month later.
FINANCIAL RESULTS
Reported net profit after tax was $1,575 million before non-controlling interests. This result was favourably impacted by an outstanding year of North West Shelf (NWS) operations which achieved records for production, number of cargoes, revenue and profit. The reported net profit after tax included significant items totalling $157 million. The underlying net profit after tax (pre-significant items) was $1,418 million.
The 2010 sales revenue of $4,193 million was obtained from a sales volume of 72.2 MMboe (2009: 80.7 MMboe). Sales volumes were down from 2009 primarily due to the sale of Woodside’s interest in the Otway Gas Project and oil-field natural decline. These reductions were partially offset by record production from NWS and improved Vincent reliability.
Revenue in 2010 increased by $706 million (refer to Woodside’s 2010 Annual Report for further detail), primarily due to higher commodity prices along with the positive conclusion of certain LNG pricing negotiations.
A fully-franked final dividend of US55 cps (2009: US49 cps) was declared, resulting in a full year dividend of US105 cps (2009: US95 cps). The record date for determining entitlements to the final dividend is 2 March 2011 with the ex-dividend date being 24 February 2011. The final dividend will be paid on 6 April 2011. Given Woodside’s current growth program, the dividend reinvestment plan (DRP) remains activated for the 2010 final dividend. The DRP will be fully underwritten.
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Source: Woodside, February 21, 2011;