Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — Woodside Petroleum — H1 2019 Earnings Presentation
29 slides from Woodside Energy's earnings presentation, Aug 15, 2019
Slide 1: ASX Announcement: Woodside records first half profit of US$419 million
Woodside Petroleum Ltd. ASX Announcement ACN 004 898 962 Mia Yellagonga Thursday, 15 August 2019 11 Mount Street Perth WA 6000 ASX: WPL Australia OTC: WOPEY T +61 8 9348 4000 www.woodside.com.au WOODSIDE RECORDS FIRST HALF PROFIT OF US$419 MILLION Woodside has recorded a half-year reported net profi
Slide 2: Financial headlines for H1 2019
Financial headlines for H1 2019 • NPAT of $419 million. • Free cash flow of $869 million, increased 123% from H1 2018.1 • Liquidity of $5,281 million, increased 36% from H1 2018. • Secured additional debt funding through the issue of a ten-year $1,500 million bond on the US Rule144A/Regulation S mar
Slide 3: Half-Year 2019 Results Briefing
HALF-YEAR 2019 RESULTS BRIEFING 15 AUGUST 2019
Slide 4: Disclaimer and important notice
Disclaimer and important notice This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable as at the date of this presentation but they may be affecte
Slide 5: Summary
OVERVIEW Summary Operating Free Net profit cash flow cash flow after tax 1,485 $ million $869 million $ 419 million Production 39.0 PLUTO LNG TURNAROUND COMPLETE MMboe GREATER ENFIELD FIRST OIL EXPECTED IN AUGUST 2019 Half-Year 2019 Results Briefing | 15 August 2019 3
Slide 6: Strong production fundamentals
OVERVIEW Strong production fundamentals NORTH WEST PLUTO LNG AUSTRALIA OIL WHEATSTONE SHELF PROJECT Completed first major Strong production Recommenced Increased reliability and turnaround production from the production rates Delivered efficiency and Ngujima-Yin FPSO1 Installed tie-ins for capacity
Slide 7: Delivering Greater Enfield
OVERVIEW Delivering Greater Enfield + Ngujima-Yin producing oil since early July 20191 + First oil from Greater Enfield reservoirs expected in August 2019 + Drilling campaign ahead of schedule + 11 of the 12 development wells complete1 + Expected oil production of ~40,000 barrels per day (100% basis
Slide 8: Planned Pluto LNG turnaround complete
OVERVIEW Planned Pluto LNG turnaround complete + Pluto LNG’s first major turnaround + Production impact approximately -7 MMboe1 + Production cost impact approximately $65m + Net positive impact of mitigation cargoes in H1 approximately $15m + Strong production performance following the turnaround +
Slide 9: Strong LNG market fundamentals
OVERVIEW Strong LNG market fundamentals Global LNG supply and demand outlook1 700 SCARBOROUGH AND BROWSE TARGET RFSU 600 +88 Mtpa in 2030 500 + Forecast global LNG demand continues to 400 grow 300 + Demand upside emerging as new market Mtpa opportunities increase 200 + Market outlook continues to su
Slide 10: Growth opportunities progressed
OVERVIEW Growth opportunities progressed SCARBOROUGH AND BROWSE TO NWS SNE PHASE 1 PLUTO TRAIN 2 PROJECT FEED contracts awarded Basis of design approved FPSO FEED contract awarded HORIZON I 2017-2021 Geophysical and geotechnical Environmental approvals Environmental and Social Impact CASH GENERATION
Slide 11: Financial Update
FINANCIAL UPDATE
Slide 12: Production reconciliation
FINANCIAL UPDATE Production reconciliation Production 1.1 (7.4) 44.3 3.7 (1.8) (0.8) + Strong production performance from (0.1) 39.0 NWS Project and Wheatstone + Pluto LNG turnaround complete MMboe + Adverse cyclone impact + 2019 production guidance remains at lower end of 88-94 MMboe1 1. ASX Announ
Slide 13: Profit impacted by planned turnaround
FINANCIAL UPDATE Profit impacted by planned turnaround Net profit after tax 31 (320) 541 40 419 + Favourable LNG realised prices increasing 109 $ million sales revenue (51) 69 + Pluto LNG turnaround impact on sales volume and production costs + Reduced exploration and evaluation expenditure 1. Based
Slide 14: Increased cash flow generation
FINANCIAL UPDATE Increased cash flow generation Reduced breakeven cost 71 66 52 + 123% increase in free cash flow2 40 $/bbl + Prudent expenditure management 36 33 35 + Strong underlying business with capacity to fund growth 24 1. Dated Brent price at which H1 2019 cash flow from operating activities
Slide 15: Favourable realised prices
FINANCIAL UPDATE Favourable realised prices 60.0 LNG realised price 57.0 55.0 53.7 53.3 + Increased realised prices for LNG in line 50.0 51.2 with higher lagged JCC1 $/boe + Average increase of >5% across the LNG 47.6 45.0 portfolio 45.4 + Higher contract prices partially offset by increased H1 spot
Slide 16: Unit production costs
FINANCIAL UPDATE Unit production costs Production costs 160 25.0 145 140 20.0 120 65 100 + Unit production cost impacted by 15.0 80 77 + NWS Project maintenance activities 65 60 10.3 9.7 10.0 + Planned Pluto LNG turnaround 60 + Full H1 2019 production from 40 30 30 Wheatstone Train 2 5.0 4.4 4.4 3.6
Slide 17: Strong gross margin from portfolio
FINANCIAL UPDATE Strong gross margin from portfolio 38% 28% 34% PRODUCTION AND OTHER DEPRECIATION AND GROSS MARGIN COSTS AMORTISATION 22.2 $/boe 16.2 $/boe 19.6 $/boe Half-Year 2019 Results Briefing | 15 August 2019 15
Slide 18: Liquidity and debt for growth
FINANCIAL UPDATE Liquidity and debt for growth Debt maturity profile1 1,500 1,000 + Prudent management of debt: $ million • Raised $1,500 million Rule 144A/Reg S 500 senior unsecured bond + Competitive portfolio cost of debt of 3.9% 0 2019 + Portfolio average term to maturity of 5.3 2020 2021 2022 2
Slide 19: AASB 16 lease impacts
FINANCIAL UPDATE AASB 16 lease impacts BALANCE Recognition of lease assets $987m + Adopted AASB 16 on 1 January 2019 SHEET Recognition of lease liabilities $1,194m + Accounting change only; no net cash impact + Lease payments shift from operating expenses to depreciation and interest PROFIT & Deprec
Slide 20: Investment expenditure
FINANCIAL UPDATE Investment expenditure H1 expenditure and full-year guidance Growth investment spend 1,600 SCARBOROUGH BROWSE TO NWS PROJECT 1,200 $ million 20% 24% 10% 9% 28% 9% 800 PLUTO TRAIN 2 SENEGAL PLUTO TIE-BACKS OTHER 400 1. Growth includes Scarborough, Pluto Train - + Woodside’s revised i
Slide 21: Summary
SUMMARY
Slide 22: Compelling investment proposition
SUMMARY Compelling investment proposition NEAR-TERM PRODUCTION MATERIAL GROWTH BASE BUSINESS GROWTH OPPORTUNITIES ADVANCED Pluto LNG major turnaround Delivering projects on budget Scarborough and Pluto Train 2 complete and schedule Browse to NWS Project Strong production performance On track to deli
Slide 23: Upcoming milestones
SUMMARY Upcoming milestones SCARBOROUGH AND BROWSE TO NWS SNE PHASE 1 PLUTO TRAIN 2 PROJECT Execute Scarborough gas tolling Execute gas processing FID H2 2019 agreement agreement First oil 2022 Complete Scarborough FEED Reserve NWS capacity H2 2019 Commence FEED H2 2019 Complete Pluto Train 2 FEED H
Slide 24: Annexure
ANNEXURE
Slide 25: Realised price
ANNEXURE Realised price Revenue H1 2019 H1 2018 Variance impact Products ($/boe) ($/boe) (%) ($ million) NWS LNG 48 45 5 27 Pluto LNG 57 53 7 52 Wheatstone LNG 54 51 5 10 Pipeline gas 14 16 (14) (4) Condensate 61 72 (15) (52) Oil 69 70 (1) 1 LPG 63 69 (9) (3) Volume-weighted average 51 51 (1) 31 Ave
Slide 26: Corporate performance
ANNEXURE Corporate performance H1 2019 H1 2018 Production volume MMboe 39.0 44.3 Operating revenue $ million 2,260 2,388 EBITDA $ million 1,462 1,718 EBIT $ million 699 987 Net finance costs $ million 105 117 Taxes $ million 168 277 Non-controlling interest $ million 7 52 NPAT $ million 419 541 Half
Slide 27: Segment performance
ANNEXURE Segment performance NWS Pluto Aus Oil Wheatstone Production volume MMboe 17 14 1 7 Operating revenue $ million 789 967 36 332 EBITDA $ million 562 719 10 235 EBIT $ million 424 310 - 82 Cash margin % 74 80 (22) 83 Gross margin % 54 33 (50) 23 Half-Year 2019 Results Briefing | 15 August 2019
Slide 28: Creating the Burrup Hub
ANNEXURE Creating the Burrup Hub BROWSE SCARBOROUGH + Delivering into the PLUTO LNG NWS PROJECT expected LNG supply gap PLUTO-NWS INTERCONNECTOR Conceptual image, not to scale. Developments are subject to joint venture approvals, regulatory approvals and relevant commercial arrangements. Half-Year 2
Slide 29: Woodside Petroleum Ltd contact details
Woodside Petroleum Ltd Mia Yellagonga T: +61 8 9348 4000 11 Mount Street F: +61 8 9214 2777 Perth WA 6000 E: companyinfo@woodside.com.au GPO Box D188 woodside.com.au Perth, WA 6840 Australia