Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — Woodside Petroleum — FY2019 Earnings Presentation
30 slides from Woodside Energy's earnings presentation, Feb 13, 2020
Slide 1: ASX Announcement: Woodside Full-Year 2019 Results
ASX Announcement Woodside Petroleum Ltd. ACN 004 898 962 Mia Yellagonga Thursday, 13 February 2020 11 Mount Street Perth WA 6000 ASX: WPL Australia OTC: WOPEY T +61 8 9348 4000 www.woodside.com.au WOODSIDE FULL-YEAR 2019 RESULTS Woodside has recorded a full-year net profit after tax (NPAT) of US$343
Slide 2: Financial headlines and key business activities
“Woodside is ready for FEED entry on Browse following progress on engineering work and regulatory approvals, including the release of the environmental impact statement and environmental review documents. “In Myanmar, the A-6 Development has taken a further step towards commercialisation by moving t
Slide 3: Full-year results teleconference
Full-year results teleconference A teleconference providing an overview of the full-year 2019 results and a question and answer session will be held at 7:30am AWST (10:30am ADST) on Thursday, 13 February 2020. Investors are encouraged to participate in this event by dialling the numbers listed below
Slide 4: Full-Year 2019 Results Briefing
FULL-YEAR 2019 RESULTS BRIEFING 13 FEBRUARY 2020
Slide 5: Disclaimer and important notice
Disclaimer and important notice Full-Year 2019 Results Briefing 13 February 2020 Disclaimer and risks 3. Woodside uses both deterministic and probabilistic methods for estimation of petroleum resources at the field and project levels. Unless otherwise stated, all petroleum estimates • This presentat
Slide 6: Financial headlines
OVERVIEW Financial headlines Full-Year 2019 Results Briefing 13 February 2020 Net profit after tax $ 343 million Underlying net profit after tax $ 1,063 million Revenue $ 4,873 million Operating cashflow $ 3,305 million 2019 dividend 91 US cps 3
Slide 7: Strong base business performance
OVERVIEW Strong base business performance Full-Year 2019 Results Briefing 13 February 2020 Annual production 89.6 MMboe Total recordable injury rate 0.90 per million work hours Operated LNG reliability1 97.8% Gas unit production cost1 $ 3.9 per boe Gross margin $ 24.0 per boe 1. Excludes oil facilit
Slide 8: Strong base business fundamentals
BASE BUSINESS Strong base business fundamentals Full-Year 2019 Results Briefing 13 February 2020 Greater Enfield + 4.0 MMbbl production contribution complete + Delivered on schedule and on budget + Record Pluto LNG production rates Investment in + Major NWS campaigns complete reliability + Facilitie
Slide 9: Best-ever safety performance
BASE BUSINESS Best-ever safety performance Full-Year 2019 Results Briefing 13 February 2020 Strong safety performance 1.71 1.00 1.64 1.80 1.60 0.80 1.29 1.32 1.40 + Record lowest annual injury rate 0.60 0.90 1.20 0.61 1.00 Total recordable injury rate1 + No Tier 1 or Tier 2 loss of primary 0.40 0.80
Slide 10: Development momentum
GROWTH Development momentum Full-Year 2019 Results Briefing 13 February 2020 NEAR-TERM SANGOMAR SCARBOROUGH BROWSE MYANMAR A-6 GROWTH PHASE 1 PLUTO TRAIN 2 + Pyxis Hub + Exploitation Plan + Agreed Train 2 + Completed Basis of + Completed concept approved tolling price Design selection and + Julimar-
Slide 11: Producing ~40 Tcf through the Burrup Hub
GROWTH Producing ~40 Tcf through the Burrup Hub Full-Year 2019 Results Briefing 13 February 2020 Staircase of new production (MMboe) Tripling reserves base (MMboe) 866 3,646 SCARBOROUGH CAGR >6% 2019-2028 150 GREATER 105 ENFIELD 1,462 BROWSE 2 1,876 100 BROWSE 1 1,213 SANGOMAR 50 PHASE 1 MYANMAR A-6
Slide 12: Delivering a lower-carbon future
SUSTAINABILITY Delivering a lower-carbon future Full-Year 2019 Results Briefing 13 February 2020 + Lower-carbon fuel NATURAL GAS + Essential to energy transition + Complementary to renewables INCREASING + Direct investment and partnerships SUSTAINABILITY + New energy: Monash University + Carbon offs
Slide 13: Financial Update
FINANCIAL UPDATE v Woodside
Slide 14: Financial headlines
FINANCIAL UPDATE Financial headlines Full-Year 2019 Results Briefing 13 February 2020 Underlying NPAT $ 1,063 million Cash on hand $ 4,058 million Gearing 14.4% Liquidity $ 6,952 million Liquidity cover ~12-18 months 11
Slide 15: Resilient profitability
FINANCIAL UPDATE Resilient profitability Full-Year 2019 Results Briefing 13 February 2020 NPAT reconciliation 1,364 (391) 88 (720) (40) 187 (151) 109 (71) + Sales revenue impacted by lower (32) $ million realised price + Reduced exploration expense 343 + Greater Enfield start-up + Adoption of AASB 1
Slide 16: Underlying production cost reduced
FINANCIAL UPDATE Underlying production cost reduced Full-Year 2019 Results Briefing 13 February 2020 Production cost 6.9 1,000 7.0 900 5.7 Unit6.0 production cost ($/boe)1 + Total costs impacted by planned 800 5.0 5.2 5.1 5.0 Pluto LNG major turnaround 700 4.5 Pluto turnaround impact 600 639 + Addit
Slide 17: Strong margins across portfolio
FINANCIAL UPDATE Strong margins across portfolio Full-Year 2019 Results Briefing 13 February 2020 Gross margin Cash margin ($/boe) 44% 48 24% 32% 46 40 Cash margin1 31 38 1 PRODUCTION AND DEPRECIATION AND GROSS MARGIN OTHER COSTS AMORTISATION 8 2 16 4 Other cash costs2 24.0 3 12.9 17.6 4 6 4 6 Produ
Slide 18: Increased cashflow generation
FINANCIAL UPDATE Increased cashflow generation Full-Year 2019 Results Briefing 13 February 2020 Breakeven cashflow ($/boe) 80 71 70 64 Average annual dated Brent 60 + 27% reduction in breakeven price 54 54 50 54 + 36% increase in free cashflow 49 45 50 Volume weighted average realised price 40 44 +
Slide 19: Preparing balance sheet for growth
FINANCIAL UPDATE Preparing balance sheet for growth Full-Year 2019 Results Briefing 13 February 2020 Debt maturity 1,500 + New facilities of $2,450 million in 2019 + Balanced debt maturity profile 1,000 + 14.4% gearing $ million + 3.6% portfolio cost of debt 500 + 5.2 years portfolio weighted averag
Slide 20: Solid distributions to shareholders
FINANCIAL UPDATE Solid distributions to shareholders Full-Year 2019 Results Briefing 13 February 2020 Full-year dividend 200 80.0 71 180 64 160 Average annual dated Brent ($/boe) 60.0 54 54 140 144 + 80% payout ratio 120 45 1 + 5.3% dividend yield 100 109 40.0 98 91 + Reactivated the dividend reinve
Slide 21: 2020 guidance
FINANCIAL UPDATE 2020 guidance Full-Year 2019 Results Briefing 13 February 2020 Investment expenditure guidance Production guidance $4,100 – 4,400 million3 MMboe 4,000 LNG 74 – 77 Growth5 Liquids1 18 – 20 Exploration Sangomar Phase 1 Australian domestic gas 4–5 Other2 1 3,000 Scarborough Total 97 –
Slide 22: Summary
SUMMARY Woodside
Slide 23: Global LNG demand
SUMMARY Global LNG demand Full-Year 2019 Results Briefing 13 February 2020 Global LNG outlook (Mtpa) Marine fuel 600 Developing Asia LNG supply 400 China Other + LNG demand growth 200 Europe – Increased 42% in the past four years Japan, Korea, Taiwan 0 2015 2020 2025 2030 2035 – CAGR expected to exc
Slide 24: 2020 outlook
SUMMARY 2020 outlook Full-Year 2019 Results Briefing 13 February 2020 EXCELLENT BASE DELIVERING INCREASING BUSINESS GROWTH SUSTAINABILITY + Production guidance + Sangomar Phase 1 + Reduce carbon intensity 97-103 MMboe - Commence FPSO construction + Expand carbon offset business + Maintain high cashf
Slide 25: Delivering the vision
SUMMARY Delivering the vision Full-Year 2019 Results Briefing 13 February 2020 Browse Scarborough CREATING VALUE + Capital efficient developments Karratha + Meeting global demand Gas Plant Pluto LNG (KGP) + Maintaining momentum + Strong base business Pluto Train 2 Pluto-KGP Interconnector Existing P
Slide 26: Annexure
ANNEXURE Woodside
Slide 27: Realised price
ANNEXURE Realised price Full-Year 2019 Results Briefing 13 February 2020 Revenue 2019 2018 Variance impact Products ($/boe) ($/boe) (%) ($ million) NWS LNG1 45 48 (6) (85) Pluto LNG 54 57 (5) (93) Wheatstone LNG2 52 59 (12) (72) Domestic gas 14 15 (7) (5) Condensate 60 71 (15) (103) Oil 66 71 (7) (2
Slide 28: Corporate performance
ANNEXURE Corporate performance Full-Year 2019 Results Briefing 13 February 2020 2019 2018 Production volume MMboe 89.6 91.4 Operating revenue $ million 4,873 5,240 EBITDA $ million 3,531 3,814 EBIT $ million 1,091 2,278 Net finance costs $ million 229 183 Taxes $ million 480 628 Non-controlling inte
Slide 29: 2019 segment performance
ANNEXURE 2019 segment performance Full-Year 2019 Results Briefing 13 February 2020 NWS Pluto Australia Oil Wheatstone Production volume MMboe 32 37 6 14 Operating revenue $ million 1,379 2,230 360 677 EBITDA $ million 967 1,804 205 619 EBIT $ million 699 963 35 298 Cash margin % 72 85 74 84 Gross ma
Slide 30: Woodside Petroleum Ltd
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