Woodside Nearly Doubles Revenue as Fossil Fuel Giants Cash in on Oil and Gas Prices
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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