Page 8 - GLNG Week 08 2022

GLNG COMMENTARY GLNG

Australian oil and gas

firms post profits

Several of Australia’s oil and gas producers have reported

improved profits, buoyed by rising commodity prices

PERFORMANCE SEVERAL Australian producers have posted Woodside’s CEO, Meg O’Neill, described
improved profits for the final quarter or second 2021 as a “transformative year”, during which
WHAT: half of 2021, or the whole year, in recent days. foundations were laid for the company’s future.
Various Australian This includes Woodside, which reported that “Woodside ended 2021 in a strong financial
producers have posted its core profit for the whole of 2021 had more position. Our higher underlying full-year profit
profits up to the end of than tripled, and Santos, which posted a record of $1,620mn and free cash flow of $851mn
2021. underlying profit for the year. reflected our consistent operational perfor-
These profits can be attributed in large part to mance, the improved price environment for our
WHY: stronger oil and gas prices. And the results put products and the proactive decisions made to
This reflects a global the producers in a stronger position as they con- manage our sales portfolio,” O’Neill stated. She
trend of producers sider how to proceed in unprecedented market pointed in particular to November, when the
benefiting from stronger conditions. company agreed to merge with BHP’s oil and
oil and gas prices. gas business, as well as taking a final investment
Posting profits decision (FID) on the Scarborough develop-
WHAT NEXT: Woodside announced on February 17 that its net ment and the related Pluto LNG Train 2 project.
Australian producers profit after tax for 2021 had reached $1.983bn, “November 2021 could be recorded as the
appear set to continue while its underlying net profit for the year came most remarkable month in Woodside’s 67-year
pursuing new projects, in at $1.62bn – up 149% and 262% year on year history,” she said.
while also devoting more (y/y) respectively. The company said its average Santos, for its part, reported record underly-
resources to the energy realised oil price for the year was up 78% y/y at ing profits, production, sales revenue and free
transition. $79 per barrel of oil equivalent (boe), while its cash flow over the whole of 2021. The under-
average realised LNG price had risen 86% y/y lying profit, excluding one-off items, came in
to reach $58 per boe. Output for the year was at $946mn, up y/y from $287mn, while pro-
91.1mn boe. duction reached 92.1mn boe for the year. The

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