Thursday, 21 July 2022
SECOND QUARTER REPORT FOR PERIOD ENDED 30 JUNE 2022
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Performance · Delivered production of 33.8 MMboe, up 60% from Q1 2022. · Delivered sales volume of 35.8 MMboe, up 51% from Q1 2022. · Delivered average realised price of $95 per barrel of oil equivalent. · Delivered revenue of $3,438 million, up 44% from Q1 2022.
Highlights · Completed the merger with BHP's petroleum business on 1 June. · Changed company name to Woodside Energy Group Ltd. · Commenced trading on the New York Stock Exchange on 2 June and the London Stock Exchange on 6 June under the ticker 'WDS'.
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Woodside Energy CEO Meg O'Neill said: production and revenue in the second quarter rose 60% and 44% respectively from the first three months of 2022, helped by the contribution from BHP's petroleum business.
“Production for the period was 33.8 million barrels of oil equivalent, while revenue climbed to $3,438 million on the back of a 51% increase in sales volume to 35.8 million barrels of oil equivalent.
“The completion on 1 June of our merger with BHP's petroleum business was the highlight of the period, transforming Woodside into a top 10 global independent energy producer by hydrocarbon production, and making us the largest energy company listed on the Australian Securities Exchange.
“Woodside received a net cash payment from BHP Group of approximately $1.1 billion, which included the cash remaining in the bank accounts of BHP Petroleum immediately prior to completion.
“The merger was overwhelmingly endorsed by Woodside's shareholders at our Annual General Meeting in May, and they are now seeing first evidence of the increased financial and operational strength the transaction will deliver.
“The subsequent listings of Woodside shares on the New York and London stock exchanges were historic moments for the company, reflecting our more diverse shareholder base.
“Significant progress was made on our key projects during the quarter. All major equipment items for Scarborough have been procured and construction has begun at the Pluto Train 2 site.
“First steel for Scarborough's floating production unit topsides was cut, pipeline manufacturing is 25% progressed and the subsea trees for initial start-up of the project are all complete.
“Installation of the mooring system for the floating production, storage and offloading facility at the Sangomar field has been completed and the second drillship, the Ocean BlackHawk, commenced drilling in July.
” Following extensive discussions with potential new partners, we have decided to discontinue the sell-down of equity in Sangomar.
“In Australia, accelerated Pluto gas transported through the Pluto-Karratha Gas Plant Interconnector has resulted in additional LNG production and sales of uncontracted cargoes in a high-priced market.
“Lambert Deep, a component of the Greater Western Flank Phase 3 project, achieved ready for start-up in July,” she said.
Comparative performance at a glance
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Q2 2022 |
Q1 2022 |
Change % |
Q2 2021 |
Change % |
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Production |
MMboe |
33.8 |
21.1 |
60.2 |
22.7 |
49.1 |
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Sales |
MMboe |
35.8 |
23.8 |
50.8 |
28.1 |
27.4 |
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Revenue |
$ million |
3,438 |
2,395 |
43.6 |
1,327 |
159.1 |
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Production was 60.2% higher and sales volume was 50.8% higher than the previous quarter primarily due to the inclusion from 1 June 2022 of the BHP petroleum assets, following the completion of the merger.
Reserves and production reporting
- Woodside's production reporting and reserves statement are being updated to include the assets acquired as part of the BHP Petroleum (BHPP) merger, and to apply a consistent methodology and conversion factors across the combined portfolio. The updated reserves statement is expected to be released on 30 August 2022.
- All gas products for production and reserves will be reported in barrels of oil equivalent (boe) and calculated from a volumetric basis with a conversion factor of 5,700 standard cubic feet (scf) per boe. BHPP previously used 6,000 scf per boe. Woodside's production reporting previously used product-specific conversion factors on an energy basis.
- Production and sales volumes for Q1 2022 have been restated using the updated conversion factors. There is no impact on revenue as a result of the change in conversion factors.
Woodside and BHP Petroleum merger
- The merger of Woodside and BHP's petroleum business completed on 1 June 2022 following Woodside shareholder approval on 19 May 2022.
- On completion, Woodside:
o acquired the entire share capital of BHP Petroleum International Pty Ltd and issued 914,768,948 new Woodside shares to BHP
o received net cash of approximately $1.1 billion, which included the cash remaining in BHPP bank accounts immediately prior to completion. All completion payments are subject to a customary post-completion review which may result in an adjustment.
- Trading commenced on 2 June 2022 under the ticker WDS of:
o the new Woodside shares on the Australian Securities Exchange (ASX), and
o Woodside depository shares on the New York Stock Exchange (NYSE).
- Trading commenced on 6 June 2022 of Woodside shares on the Main Market for listed securities of the London Stock Exchange (LSE), also under the ticker WDS.
- The merger has created a top 10 global independent energy producer by hydrocarbon production on a combined 2021 basis and the largest energy company listed on the ASX.[1]