Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — Woodside Petroleum — H1 2020 Earnings Presentation
27 slides from Woodside Energy's earnings presentation, Aug 13, 2020
Slide 1: ASX Announcement: Woodside Half-Year 2020 Results
ASX Announcement Woodside Petroleum Ltd. ACN 004 898 962 Mia Yellagonga Thursday, 13 August 2020 11 Mount Street Perth WA 6000 ASX: WPL Australia OTC: WOPEY T +61 8 9348 4000 www.woodside.com.au WOODSIDE HALF-YEAR 2020 RESULTS The first half of 2020 has been characterised by unprecedented disruption
Slide 2: Financial headlines for H1 2020 and key business activities
“Woodside remains committed to developing the Scarborough and Browse gas resources through our proposed Burrup Hub and has continued work on commercial agreements and regulatory approvals to ensure we are ready to take FIDs when investment conditions improve. “Milestones were reached for our near-te
Slide 3: Half-Year Results Briefing August 2020
HALF-YEAR RESULTS BRIEFING 1s AUGUST 2020
Slide 4: Disclaimer and important notice
Half-Year Results Briefing Disclaimer and important notice 13 August 2020 Disclaimer and risks while for the onshore gas projects the reference point is defined as the inlet to the downstream (onshore) processing facility. This presentation contains forward looking statements that are subject to ris
Slide 5: Demonstrated resilience
OVERVIEW Half-Year Results Briefing Demonstrated resilience 13 August 2020 DECISIVE OPERATIONAL FINANCIAL ACTION EXCELLENCE RESULTS + Significant expenditure reduction + Record first-half production + $(4,067) million net profit after tax + Deferred FIDs on Scarborough, + Strong operated LNG reliabi
Slide 6: Improving external environment
OVERVIEW Half-Year Results Briefing Improving external environment 13 August 2020 Challenging market conditions 80 6 + Immediate global economic contraction 70 $66.09 REDUCED + Travel restrictions 2 January 2020 5 DEMAND + Reduced industrial activity 60 Dated Brent ($/bbl), LHS 4 + Recovery underway
Slide 7: Compelling operational performance
OVERVIEW Half-Year Results Briefing Compelling operational performance 13 August 2020 Record first-half production + Record first-half production of 50.1 MMboe RELIABLE 3.6 (0.5) 50.1 + Outstanding safety outcomes PRODUCTION 7.9 0.4 + Continued product delivery 39.0 (0.3) + Sector leading response E
Slide 8: Asset value review
OVERVIEW Half-Year Results Briefing Asset value review 13 August 2020 NPAT key drivers 419 (663) 4,370 303 306 (5,716) (4,067) $ million + Non-cash impact 1,496 91 + Oil and gas properties impairment losses principally driven by lower oil price assumptions to 2025 Other 1 Impairment losses and onero
Slide 9: Sangomar
OVERVIEW Half-Year Results Briefing Sangomar 13 August 2020 ACHIEVED FID + Project execution activities commenced – VLCC tanker purchased – Detailed design work ongoing – Subsea tree assembly commenced – Long-lead items awarded + Processing high definition 3D seismic data Targeting first oil in 2023
Slide 10: Value creation
OVERVIEW Half-Year Results Briefing Value creation 13 August 2020 WELL POSITIONED SCARBOROUGH + Tough decisions implemented + Capital-efficient development + Strong balance sheet + Reviewing potential increase of upstream processing capacity + Ongoing review of inorganic growth opportunities + Progr
Slide 11: Sustainability
OVERVIEW Half-Year Results Briefing Sustainability 13 August 2020 + 6.2% improvement in energy efficiency performance against 2016 baseline CLIMATE + Commenced first phase of tree planting under Greening Australia partnership + Review of industry association memberships + Progressing development of
Slide 12: Financial Update
\w Sea FINANCIAL UPDATE
Slide 13: Demonstrated resilience
FINANCIAL UPDATE Half-Year Results Briefing Demonstrated resilience 13 August 2020 MARKETS IMPACTS ACTIONS + Reduction in oil price and LNG spot + Lower realised price + Reduced investment and total price expenditure + Increased spot sales + Reduction in US Treasury and + Executed hedge transactions
Slide 14: Net profit after tax reconciliation
1. $ million FINANCIAL UPDATE H1 2019 NPAT 419 Sales revenue: price (663) Sales revenue: volume 306 Production costs 59 Depreciation and amortisation (184) Exploration and evaluation 70 Other items include restoration, finance costs, foreign exchange movements and other individually immaterial items
Slide 15: Balanced contract portfolio
FINANCIAL UPDATE Half-Year Results Briefing Balanced contract portfolio 13 August 2020 Produced LNG sales volumes and cargo mix 37.5 MMboe 5% + 13% spot sales in Q1 2020 17% + Spot sales above plan in Q2 2020 driven by: 9% – Increased LNG production Spot (increased production) – Customers exercising
Slide 16: Reduced unit production cost
FINANCIAL UPDATE Half-Year Results Briefing Reduced unit production cost 13 August 2020 Lower production cost Lower cash cost of sales 7.3 500 450 6.0 11.9 400 5.2 + $3.8/boe LNG unit production cost: 350 4.9 4.6 10.2 5.2 9.7 – Increased production 300 8.8 4.5 4.0 8.5 – Re-phased non-essential 250 2
Slide 17: Low breakeven price
FINANCIAL UPDATE Half-Year Results Briefing Low breakeven price 13 August 2020 Breakeven cash flow 71 66 52 40 + Prudent expenditure management 40 Average annual Dated Brent ($/boe) + Continuing execution of Sangomar Phase 1, 36 35 Pyxis Hub, Julimar-Brunello Phase 2 and 33 32 Greater Western Flank
Slide 18: Proactive capital management
FINANCIAL UPDATE Half-Year Results Briefing Proactive capital management 13 August 2020 Cash and cash equivalents ($ million) Debt maturity ($ million) 7,552 1,500 + Active cash preservation + Maximising optionality 5,281 + Balanced debt maturity profile 1,000 – 19.4% gearing 3,877 – 3.0% portfolio
Slide 19: 2020 guidance
FINANCIAL UPDATE Half-Year Results Briefing 2020 guidance 13 August 2020 Production guidance unchanged Total expenditure guidance unchanged Investment expenditure guidance reduced 97 – 103 MMboe ~$2,400 million $1,500 – 1,700 million 2,500 2,500 2,000 2,000 MMboe Operating expenditure¹3 LNG 74 – 77
Slide 20: Summary
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Slide 21: Advantaged position
SUMMARY Half-Year Results Briefing Advantaged position 13 August 2020 EXTERNAL ENVIRONMENT WOODSIDE ADVANTAGES + Early signs of recovery + Resilient base business – Economic activity increasing + Strong free cash flow and liquidity – Expecting prices to firm + Fully funded capital commitments – Supp
Slide 22: Key messages
SUMMARY Half-Year Results Briefing Key messages 13 August 2020 Outstanding operational performance Robust cash flow and balance sheet Prudently executing committed capital projects Significant progress in new energy and carbon Pursuing value-creating opportunities 20
Slide 23: Annexure
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Slide 24: Realised price
ANNEXURE Half-Year Results Briefing Realised price 13 August 2020 Revenue H1 2020 H1 2019 Variance impact Products ($/boe) ($/boe) (%) ($ million) LNG1,2,3 37 52 (27) (550) Domestic gas 14 14 4 1 Condensate 38 61 (39) (114) Oil 39 69 (43) - LPG - 63 (100) - Volume-weighted average 36 51 (29) (663) A
Slide 25: Corporate performance
ANNEXURE Half-Year Results Briefing Corporate performance 13 August 2020 H1 2020 H1 2019 Production volume MMboe 50.1 39.0 Operating revenue $ million 1,907 2,260 EBITDA $ million (4,295) 1,462 EBIT $ million (5,242) 699 Net finance costs $ million (124) (105) Taxes $ million 1,328 (168) Non-control
Slide 26: Segment performance
ANNEXURE Half-Year Results Briefing Segment performance 13 August 2020 NWS Pluto Australia Oil Wheatstone Production volume MMboe 16.5 22.1 4.3 7.2 Operating revenue $ million 554 902 156 268 EBITDA $ million (48) (536) (606) (1,168) EBIT $ million (184) (964) (776) (1,328) Cash margin % 75 86 65 83
Slide 27: 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