Woodside Petroleum’s half-year profits fell 39% to $US679 million as falling oil prices bite into the energy producer’s business.
Revenue was down 28% to $US2.556 billion, due to lower commodity prices and some reduced sales volumes.
The result was broadly in line with expectations. CEO Peter Coleman says the results reflects the impact of the fall in oil prices over the past year. He says the company has continued to focus on cost cuts and process efficiencies.
“Projects such as Greater Enfield have taken advantage of lower costs resulting from the low oil price environment, while we constantly look to improve processes, as demonstrated at our recent Pluto turnaround which was completed ten days ahead of the original schedule,” Coleman says.
Woodside expects the oil market to remain oversupplied in 2016.
The company has been buying assets in a depressed market. Woodside bought out Texas-based Apache Corporation’s interests in the Australian Wheatstone natural gas project, plus the Balnaves oil and the Kitimat gas projects in Canada for a total of US$2.75 billion (AU$3.348 billion).
The company declared a fully franked interim dividend of 66 US cents a share, down from $US1.11 a year ago.