Fossil Fuel Giants Cash in on Oil and Gas Prices? Woodside Energy’s quarterly revenue has nearly doubled. It was just in a year! Thanks to strong gas pricing following a similar announcement from oil and gas giant Santos last week.
Woodside on Wednesday reported an 81% jump in its fourth-quarter revenue despite recent declines in oil prices.
The company’s high performance is likely down to the fact that most of Woodside’s LNG sales are linked to oil prices on a three to six-month lag.
The giant also profited from the acquisition of BHP Group assets, and benefits from exposure to gas hubs with strong prices like the Japan-Korea Marker (JKM) in Asia and the Netherlands’ TTF – in 2022, 23% of Woodside’s LNG was sold at prices linked to gas hub indexes, according to Reuters.
Despite this, fourth-quarter revenue was down 12% from the third quarter, riding lower prices and reduced trading activity.
CEO Meg O’Neill said oil production in the fourth quarter, a record 51.6 million barrels of oil equivalent (boe), was the highest annual production in the company’s history. O’Neill linked the company’s record performance to asset reliability.
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Source: Renew Economy
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