Woodside profit tumbles 99%

Woodside Petroleum – Australia’s largest independent oil and gas company – has posted a 99% fall in profits for the 12 months to December. The Perth-based firm put the dramatic decline in profits down to the global fall in oil prices. In 2015, Brent crude prices fell more than 45%.
Woodside has delivered a full year statutory net profit after tax (NPAT) of US$26 million. NPAT prior to the deduction of one-off non-cash items was US$1.126 billion1, a reduction on 2014 due to falling commodity prices and revenues, partially offset by cost reductions.
The statutory NPAT was reduced by $1.1 billion after tax for one-off charges including asset impairments.
Impairments have arisen mainly due to lowering our short and long term oil price assumptions.
The directors have declared a final dividend of US43 cents per share (cps) bringing the full-year dividend to US109 cps.
The dividend was based on an NPAT of US$1.126 billion prior to the deduction of one-off non-cash items.
Cash flow from operating activities was US$2.376 billion, underpinned by our second highest annual production result and lower operating costs.
Strong levels of liquidity were maintained with US$1.7 billion in cash and undrawn facilities available as at 31 December 2015.

    Financial Highlights
    Profit:

 Statutory NPAT of US$26 million, down from US$2.414 billion in 2014.
 NPAT prior to the deduction of one-off non-cash items of US$1.126 billion.
 Operating revenue of US$5.030 billion.

    Cashflow:

 Operating cash flow of US$2.376 billion, despite lower average realised commodity prices.
 Break-even cash cost of sales2 was reduced for the second consecutive year to ~$11.00/boe, down from ~$16.50/boe in 2013.
 Total unit production costs of US$6.83/boe, down 19% from US$8.43/boe in 2013.

    Balance Sheet:

 Available funds of US$1.7 billion (cash of US$0.122 billion and available debt facilities of US$1.6 billion).
 Net debt of US$4.319 billion, up from the 2014 net cash position of US$682 million primarily due to asset acquisitions.
 Raised US$4.1 billion of new and refinanced debt, resulting in a competitive pre-tax portfolio cost of debt of 2.9% pa.
 Gearing at 23%, within our target range of 10-30% across the cycle.
Woodside CEO Peter Coleman said the results reflected Woodside’s resilience in this low oil price environment.

“Woodside, with its low cost of production, is well positioned to withstand this commodity cycle. A strong performance from our operating assets, disciplined financial management and productivity gains reflect our ongoing commitment to delivering value for our shareholders. Throughout 2015, we focused on driving forward productivity improvements and achieved some great results. We also maintained strong levels of liquidity and have low levels of committed capital expenditure,”

Key Business Achievements
Source: Woodside Petroleum
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