Half-year results saw Woodside petroleum Ltd share price consistently increase over the last six months.
Today, Woodside petroleum Ltd [ASX:WPL] shares are trading at 36.60, which is up 28% compared to 23 February 2018 when they were trading at 36.60 over 6 months ago.
Wheatstone aiding Woodside petroleum Ltd share price
Woodside reported pleasing half-year results with the second quarter ending 30 June 2018, which was reflected in their rising share price.
New production after the start up of both Wheatstone train 1 in the second half of 2017, and Wheatstone 2 in June 2018, as well as WPl’s strong Pluto performance, aiding in sales revenue by $204 million.
But investors should note that this strong sales revenue was impacted by timing of exploration activities and depreciation and financing costs.
WPL also saw capital cost reductions approaching 10%.
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According to Woodside’s CEO Peter Coleman the start up of LNG production from Wheatstone train 2 was the highlight of the period, bringing home another strong performance for the second quarter.
‘Since starting up in June, Wheatstone Train 2 has achieved high production rates building on the continuing operational success at train 1. Output from wheatstone, along with oil and gas from the Greater Enfeild and Greater Western Flank Phase 2 developments, will contribute to target production of approximately 100 MMboe in 2020.
‘Pluto LNG again turned in an outstanding result for the quarter, achieving 100% reliability and annualised production rate of 5.2 million Tonnes per annum.’ He said.
Which saw the construction of Pluto LNG’s truck loading facility in April this year, which is expected to be operational by 2019, and will provide LNG distribution to customers in Western Australia’s Pilbara region.
Investors should keep in mind that LNG prices are impacted by the proportion of spot sales, the delivery basis of its cargo and customer mix. And because of this the company also expects reduced exploration spend in future.
Clear plans for Woodside Petroleum’s future
Woodside Petroleum announced that they are on budget and running to schedule for their near-term projects.
This, along with Wheatstone’s project performing very well, has aided to WPL’s rising share price.
And Woodside’s Executive Vice president and chief financial sherry Duhe, said WPL is expecting to utilise existing LNG infrastructure to develop new, globally cost competitive natural gas resources.
For Money Morning
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