Woodside Q3 Revenue Drops 42% As Virus Hammers Energy Markets

By Glenn Dyer | More Articles by Glenn Dyer

Revenue shock continues for Woodside as lower oil and LNG prices carve hundreds of millions from its top line.

Woodside told the ASX yesterday that it saw a 42% revenue fall in September quarter sales as the impact of the coronavirus-driven oil price crash hit sales of LNG.

Woodside on Thursday revealed its revenue fell to $US699 million ($983 million) in the three months through September, from $1.25 billion in the same quarter last year, missing analysts’ forecasts.

For the first nine months of the calendar, year revenue was down $US853 million, or 24% at $US2.655 billion.

Woodside chief executive Peter Coleman said he expected LNG prices in the coming two quarters to be stronger in light of the improvement in benchmark oil prices since the collapse in March and April.

West Texas Intermediate oil futures prices fell to a negative $US37 barrel in April. Brent has recovered from less than $US10 a barrel or less in late April to now trade at $US41 a barrel.

“In particular, I am encouraged by the strengthening Asian LNG spot price, which is now above $US6.50 per million British thermal units for December deliveries,” Mr. Coleman said in yesterday’s statement.

Woodside revealed large asset impairment write-downs earlier this year of around $6.3 billion.

It has slashed much-planned spending, delayed making investment decisions on key growth projects, and, last week retrenched 8% of its workforce, or about 300 jobs.

After cutting its future oil price forecasts due to the potentially longer-term negative impact on energy demand caused by the pandemic, Woodside is looking at ways to improve the viability of its $17 billion Scarborough project and the $30 billion Browse project both of which are off the West Australian Coast.

Woodside shares fell 1.6% to $18.27 which was more to do with the fall in global oil prices on Wednesday.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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