Australia’s top independent gas producer, Woodside, posted a 42% drop in sales revenues during Q3 2020 on the back of reduced oil and gas prices, Kallanish Energy reports.
Total revenues came to $699 million in the July-September period, down from $1.21 billion the year previously. Sales revenue for liquefied natural gas (LNG) during Q3 totalled $462 million, a year-on-year decrease of 51% from $946 million.
Woodside’s realized LNG prices plunged 54% to average $3.9 per million British thermal units (MmBtu) in Q3, compared with $8.7/MmBtu a year earlier. In the previous quarter, prices averaged $5/MmBtu, which is 22% higher than 3Q20.
Sales revenues of oil, condensate and domestic gas totalled $237 million, down from $263 million y-o-y. However, the figures represent an increase of 48% from $160 million in Q2.
LNG production volumes remained consistent during Q3 as Woodside produced 19.06 million barrels of oil equivalent (Mmboe), representing an increase of 1.4% from the year previously.
Output was significantly higher from the North West Shelf project, rising from 550, 942 tonnes in Q3 2019 to 617,700 tonnes. Woodside’s Pluto and Wheatstone projects recorded total LNG output of 1.2 million tonnes and 317, 651 tonnes, respectively.
“As expected, sales revenue in the third quarter was impacted by lower realised LNG prices, reflecting the oil price lag in many of our contracts,” said CEO Peter Coleman.
“Pricing in the fourth quarter and in Q1 2021 is expected to be stronger given the improvement in oil price in recent months. In particular, I am encouraged by the strengthening Asian LNG spot price, which is now above $6.50/MMBtu for December deliveries,” he added.
This post appeared first on Kallanish Energy News.