Woodside share price tumbles on 12% quarterly revenue decline

Woodside share price tumbles on 12% quarterly revenue decline
Woodside share price tumbles on 12% quarterly revenue decline

The Woodside Energy Group Ltd (ASX: WDS) share price is sliding today.

Shares in the S&P/ASX 200 Index (ASX:XJO) energy stock closed yesterday trading for $29.45. In early trade on Friday, shares are swapping hands for $28.58, down 3.0%.

For some context, the ASX 200 is down 1.1% at this same time.

This comes on the heels of the release of Woodside’s quarterly production update for the three months ending March 31 (Q1 2024).

Here are the highlights.

Woodside share price falls as production declines

The Woodside share price is in the red today after the ASX 200 oil and gas company reported producing 44.9 million barrels of oil equivalent (MMboe) over the three months.

That’s down 7% from last quarter amid lower production at the company’s Bass Strait, Pyrenees and Pluto projects. Increased production at its Mad Dog Phase 2 project helped offset some of the slowdown.

Quarterly revenue of $2.97 billion was down 12% from Q4 2023, impacted by lower realized prices and lower volumes. Woodside reported an average realized price of $63 per barrel of oil equivalent (boe), down 5% from the final quarter of 2023.

On its major project front, drilling of production wells kicked off at the Scarborough Energy Project, and the first Pluto Train 2 modules were delivered. The project was 62% complete at the end of the quarter. Management is targeting the first LNG cargo in 2026.

Across the world, the Sangomar Project floating production storage and offloading (FPSO) vessel arrived offshore Senegal with commissioning activities underway. The project was 96% complete at the end of the quarter. Woodside is targeting first oil in mid-2024.

The quarter also saw Woodside publish its Climate Transition Action Plan and 2023 Progress Report (CTAP).

Full-year guidance remained unchanged.

What did management say?

Commenting on the quarterly results failing to lift the Woodside share price today, CEO Meg O’Neill said:

Significant progress was made in the period on our three major growth projects. Commissioning activities are now underway at the Sangomar project in Senegal, on track for first oil in the middle of this year. Nineteen of the 23 production wells at Sangomar have now been completed.

In Western Australia, a milestone was marked with the arrival on site of the first modules for Pluto Train 2 and 13 modules were in place at the end of the quarter. Offshore, two flowlines were installed at the Scarborough field and drilling of the initial wells commenced…

During the period we completed the sale of a 10% non-operated interest in the Scarborough project to LNG Japan and entered into an agreement with JERA for the sale of a further 15.1% of the Scarborough joint venture.

Woodside share price snapshot

The Woodside share price is down 9% so far in 2024.

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