Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — Woodside Petroleum — H1 2021 Earnings Presentation
28 slides from Woodside Energy's earnings presentation, Aug 18, 2021
Slide 1: ASX Announcement: Woodside Half-Year 2021 Results
Woodside Petroleum Ltd. ASX Announcement ACN 004 898 962 Mia Yellagonga Wednesday, 18 August 2021 11 Mount Street Perth WA 6000 ASX: WPL Australia OTC: WOPEY T +61 8 9348 4000 www.woodside.com.au WOODSIDE HALF-YEAR 2021 RESULTS Woodside recorded a half-year reported net profit after tax (NPAT) of US
Slide 2: Financial headlines for H1 2021
Financial headlines for H1 2021 • Net profit after tax of $317 million. • Underlying net profit after tax of $354 million. • Positive free cash flow of $311 million. • Liquidity of $6,038 million. • Declared an interim dividend of 30 US cents per share. • Strong investment grade credit ratings of Ba
Slide 3: Half-Year Results Briefing 2021
Slide 4: Disclaimer and important notice
Disclaimer and important notice Disclaimer and risks transportation up to a reference point. For offshore oil projects the reference point is defined as • This presentation contains forward looking statements that are subject to risk factors associated the outlet of the floating production storage a
Slide 5: Financial overview
Financial overview $ 317 354 $ 1,318 311 $ $ 30 US cents million million million million share per Net profit Underlying Operating Free cash Interim after tax net profit cash flow flow dividend after tax 108% 17% 19% 18% 15% 3
Slide 6: Operational overview
Operational overview 46.3 53.9 44.6 $ 984 0 MMboe MMboe per boe million Tier 1 and Tier 2 Half-year Half-year Average Gross profit Process safety production sales volumes realised price events 8% 6% 24% 618% 4
Slide 7: Operational performance
Operational performance PLUTO LNG NWS PROJECT WHEATSTONE AUSTRALIA OIL • Ongoing high production • On track for 15% reduction • Achieved solid production • Lower production from in 2021 operating cash costs through optimisation of Ngujima-Yin FPSO due to • Achieved highest daily production wells rel
Slide 8: Sustained price recovery
Sustained price recovery 90 18 80 16 70 14 Continuing to see strong oil demand recovery in 2021 60 12 Improved oil price supports US$/MMBtu 50 10 US$/boe 40 45 44 46 8 investment 30 32 6 28 26 Increased trading activity supported 20 4 by favourable market conditions 10 2 0 0 Q1 2020 Q2 2020 Q3 2020
Slide 9: Transforming operations to maintain low cost
Transforming operations to maintain low cost Targeting 30% cost reduction for operated assets over 3 years Risk based Condition based Maintenance Rationale: maintenance maintenance planning Doing the right maintenance at the Sensors to generate work orders Dynamic tools to reduce Maintain cost compe
Slide 10: Scarborough development momentum for FID
Scarborough development momentum for FID 2021 H2 11.1 Tcf resource size, 100% Scarborough Target FID floating 12 % production unit Pluto platform > internal rate of return1 6.8 per MMBtu Proposed Pluto Pluto LNG Train 2 ~$ globally competitive cost Dampier to of supply2 Bunbury 0.1 % Natural Gas Pip
Slide 11: Scarborough development ready for execution
Scarborough development ready for execution Design concept finalised for Pluto Train 1 modifications TECHNICAL WORK COMPLETE Execution planning and schedule optimised for Scarborough and Pluto Train 2 Update approved to Pluto Greenhouse Gas Abatement Program REGULATORY APPROVALS Scarborough Nearshor
Slide 12: Sangomar project on schedule for first oil in 2023
Sangomar project on schedule for first oil in 2023 DRILLING FPSO CONVERSION • 23-well drilling campaign • Tanker conversion continues commenced in July 2021 • Topside module construction commenced • Turret and mooring system construction underway Ocean BlackRhino drillship VLCC bow removed LOGISTICS
Slide 13: Financial Update
FINANCIAL UPDATE Sherry Duhe Executive Vice President and CFO
Slide 14: Net profit after tax reconciliation
$ million H1 2020 NPAT (4,067) Impairment losses 5,269 Onerous contract provision 468 Sales revenue: price 387 Net profit after tax reconciliation Sales revenue: volume 176 77 Depreciation and amortisation Trading costs (289) Exploration and evaluation (49) Other items (166) Income tax and PRRT (1,4
Slide 15: Operating revenue
Operating revenue Operating revenue 2,504 2,388 2,260 • Operating revenue increased by 31% 1,907 • Impact of higher realised prices and 1,877 increased trading activity $ million • Higher shipping and other revenue driven by an increase in shipping sub-chartering H1 2017 H1 2018 H1 2019 H1 2020 H1 2
Slide 16: Operational cost performance
Operational cost performance Production cost 7.3 400 350 6.0 300 5.2 • Production cost flat 4.9 4.9 283 250 4.5 • Unit production cost impacted by: $ million 232 $/boe 224 225 4.0 • Lower NWS production 200 206 • Planned maintenance activities 150 • Lower oil production due to 100 2.0 reliability an
Slide 17: Ongoing high cash margin
Ongoing high cash margin Cash margin 50 45 40 CASH MARGIN 35 30 37.2 $/boe • Cash margin increased by $8.6/boe 25 and maintained above 80% $/boe 20 • Impact of higher realised prices 15 PRODUCTION COSTS 10 5 5.0 $/boe OTHER CASH COSTS1 3.5 0 H1 2020 H1 2021 $/boe 15 1. Other cash costs include royal
Slide 18: Maintaining strong balance sheet
Maintaining strong balance sheet Continuing strong liquidity Balanced debt maturity profile 8,000 7,552 1,500 • Gearing decreased to 23.3% 6,038 (from 24.4% year-end 2020) 6,000 5,281 • Target gearing range is 15-35% 1,000 $ million $ million • Low portfolio cost of debt (<3%) 3,877 4,000 • Target l
Slide 19: Hedging and trading activities
Hedging and trading activities CORPUS CHRISTI HEDGING PRODUCED HYDROCARBONS TRADING AND OPTIMISATION AND SALES HEDGING ~85 % up to 20 % Corpus Christi 2022 volumes are hedged or sold at fixed price1 Sales volumes (produced) Sales volumes oil-linked exposure hedged ~25 % (purchased) Corpus Christi 20
Slide 20: 2021 guidance
2021 guidance Investment expenditure unchanged Full-year 2021 line item guidance $2,900 – 3,200 million Guidance range 3,500 ($ million) 3,000 Other cost of Production costs 450 – 550 sales Trading costs1 1,100 – 1,300 2,500 Sangomar 4 Other expenses General, administrative and other costs 150 – 250
Slide 21: Summary
SUMMARY Meg O’Neill CEO and Managing Director
Slide 22: Energy transition - implementing a lower-carbon future
Energy transition - implementing a lower-carbon future 15% 30% Net zero EMISSIONS REDUCTION aspiration by NEW ENERGY Hydrogen Ammonia TARGETS 1 by 2025 by 2030 2050 Vote on climate reporting RENEWABLE TRANSPARENCY Burrup solar import at 2022 AGM POWER CARBON Building a diverse CARBON Screening for I
Slide 23: Priorities for 2021
Priorities for 2021 DISCIPLINED BUILD OUR CREATE AND PROTECT VALUE EXPENDITURE SUSTAINABLE FUTURE Achieve targeted 1 2 3 Deliver 4 Deliver Cost and efficiency Sangomar value through transformation Scarborough FID Phase 1 the energy transition in H2 2021 Customer focused | Low cost | Low carbon Progr
Slide 24: Annexure
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Slide 25: Realised price
Realised price Revenue H1 2021 H1 2020 Variance Products impact ($/boe) ($/boe) (%) ($ million) LNG1 41 37 11 140 Domestic gas 17 14 20 7 Condensate 68 38 81 120 Oil 74 39 88 120 LPG 60 - - - Volume-weighted average 45 36 24 387 Average Dated Brent 65 40 62 Average 3-month lagged JCC 50 67 (25) 1. I
Slide 26: Corporate performance
Corporate performance H1 2021 H1 2020 Production volume MMboe 46.3 50.1 Operating revenue $ million 2,504 1,907 EBITDA1 $ million 1,496 974 EBIT $ million 621 (5,242) Net finance costs $ million (118) (124) Tax (benefit)/expense $ million (161) 1,328 Non-controlling interest $ million 25 29 NPAT $ m
Slide 27: 2021 half-year segment performance
2021 half-year segment performance NWS Pluto Australia Oil Wheatstone Production volume MMboe 13.2 21.8 3.9 7.4 Operating revenue $ million 557 1,027 301 295 EBITDA $ million 417 843 207 252 EBIT $ million 308 362 97 134 Cash margin % 72% 86% 80% 83% Gross margin % 53% 36% 47% 45% 25
Slide 28: Head Office
Head Office: Woodside Petroleum Ltd Mia Yellagonga 11 Mount Street Perth WA 6000 Postal Address: GPO Box D188 Perth WA 6840 Australia T: +61 8 9348 4000 F: +61 8 9214 2777 E: companyinfo@woodside.com.au Woodside Petroleum Ltd ABN 55 004 898 962 woodside.com.au