Scarborough appears to be progressing but there was no update in the December quarter report regarding a gas agreement for Browse. Hence, delays feature in broker assessments of the outlook for Woodside Petroleum.
Rather than announce it in Australia where most of his company’s shareholders live Woodside CEO Peter Coleman has revealed plans to cut its stake in two key assets to raise funds for other developments in an interview with a global news agency.
Credit Suisse observes the shutdown at Pluto has affected revenue and production costs in the second quarter. Yet, the negatives in the June quarter are largely considered one-off and, the broker suspects, over emphasised by the market.
A site visit to Woodside Petroleum's Karratha failed to inspire the broker. While the company has moved towards a more conservative contracting strategy on its Scarborough project, bringing greater certainty for shareholders, it comes at an increased cost.
March quarter production was -3% below Citi's expectations because of unplanned outages in Western Australia. The company has indicated that Scarborough marketing is being slowed as prevailing prices have been too low.