Woodside delivers record output but falling prices hit profits

(Sharecast News) - Australian liquefied natural gas company Woodside Energy delivered a record production performance in 2023, but both profits and revenues fell sharply falling prices outweighed an increase in sales volumes. In the first full year following the completion of Woodside's merger with BHP's petroleum business, total production across gas and liquids increased to 187.2m barrels of oil equivalents (mmboe), up from 157.7mmboe in 2022, while sales volumes jumped to 201.5mmboe in 2023, up from 168.9mmboe.

However, an 18% drop in the average price of Brent crude over 2023 meant that operating revenues totalled $13.99bn, down from $16.82bn in 2022, while net profit after tax slumped to just $1.66bn from $6.50bn.

Nevertheless, Woodside pointed out that 2022 oil price levels were also elevated by the energy crisis and 14% above the five-year average.

"Oil prices are expected to remain elevated into 2024 supported by a geopolitical risk premium, OPEC+ production management and a slower growth rate for non-OPEC production."

"We achieved strong financial performance in 2023. While oil and gas prices eased from 2022's record highs, robust product demand continued," said chair Richard Goyder.

The stock was up 1% at 1,565.19p by 0930 GMT.