Australian LNG operator Woodside reported a quarter-on-quarter increase in revenue during the fourth quarter of 2017.
The sales revenue of $939 million was 2.9 percent up on the third quarter, however, compared to the corresponding quarter in 2016, the revenue was down 6.9 percent, the company’s quarterly report shows.
Production was at 21.9 mmboe, topping the 20.3 mmboe production in the third quarter but declining compared to the corresponding quarter of 2016 when the production was at 23.8 mmboe.
Speaking about the results, Woodside CEO, Peter Coleman, said the revenue for the period reflected stronger realized prices.
“We anticipate that the stronger oil prices experienced in the fourth quarter will flow through to higher realized LNG prices in the first quarter of 2018,” Coleman said.
The company also expects to increase annual LNG production in 2018, which would be the main contributor to the company’s production volumes. The company has raised the liquefied natural gas production guidance to 69-71 mmboe, up from the 61.7 mmboe actual production figure for 2017. This is mainly due to the higher contribution of Wheatstone LNG in 2018.
This increases the company’s production guidance for 2018 to 85 – 90 mmboe.
Woodside expects to invest around $1.55 billion to $1.6 billion in 2018 and achieve a neutral budget cash flow at $35/bbl.