Woodside has recorded a full-year net profit after tax (NPAT) of US$343 million. Production was 89.6 MMboe and operating cashflow was $3,305 million.

Underlying NPAT was $1,063 million prior to the deduction of a $720 million non-cash impairment for the Kitimat LNG assets in Western Canada.

The directors have declared a final dividend of US 55 cents per share (cps), bringing the full-year dividend to US 91 cps. The dividend was based on the underlying NPAT of $1,063 million.

Woodside CEO Peter Coleman said that 2019 was a pivotal year for the company, which delivered a solid performance and laid the foundations for the future while progressing long-term sustainable growth.

“Our underlying full-year profit of $1,063 million and strong free cashflow of $2.1 billion, along with our good cost performance, demonstrate the strength of our base business and its ability to fund growth.

“This was a good outcome given the challenges of Tropical Cyclone Veronica in the first quarter and major turnaround activity.

“At Pluto LNG, we safely executed the first major scheduled maintenance turnaround since start-up in 2012 and the facility went on to achieve record daily production and production rates in the second half.

“Pleasingly, we achieved our best-ever safety outcomes in 2019, which is a credit to our staff and contractors.

“The Karratha Gas Plant achieved strong LNG reliability, while completing major maintenance activities as the North West Shelf Project continued investment in extending the life of the facilities.

“In the first major instalment in our growth trajectory, the Sangomar Field Development Phase 1 in Senegal has progressed into execution phase, targeting first oil in 2023. After working throughout 2019 to secure relevant approvals, the joint venture sanctioned the development in early January 2020.

“We have delivered our near-term growth projects with the completion of the Greater Enfield Project, on schedule and budget.

“Our vision for an integrated LNG processing hub on the Burrup Peninsula is taking shape as momentum builds towards final investment decisions amidst progress on approvals, engineering work and commercial alignment.

“In a complex and at times challenging environment, we have worked hard to bring all stakeholders with us as we advance proposals to produce 40 Tcf of gas resources, including from Scarborough and Browse, and deliver value to our shareholders and communities.

“The increased value of the Scarborough resource was realised through the application of new technology confirming a 52% increase in the estimated resource volume, unlocking the huge potential of this resource and extending the expected cashflow from the development. The revised volume, in conjunction with an agreement on a tolling price for processing Scarborough gas through Pluto LNG, places the development in a strong position ahead of FID targeted for 2020.

“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 to a pre-front-end engineering design phase and agreements have been executed to enable the development to proceed.

“The impairment of Kitimat reflects increased uncertainty, particularly in the timing of the development of the upstream Liard resource, and follows sustained depressed gas market conditions in Western Canada. We will continue to evaluate development opportunities for this world-class asset.

“We have taken steps that are significant to our company’s long-term future, guided by our commitment to sustainability, including signing an agreement with Greening Australia to invest in large-scale carbon offsets,” he said.

Financial headlines

NPAT of $343 million

• Underlying NPAT of $1,063 million
• Operating cashflow of $3,305 million
• Cash and cash equivalents at year-end of $4,058 million
• LNG unit production cost of $3.9/boe, excluding the impact of the Pluto LNG turnaround
• Liquidity at year-end of $6,952 million and 14.4% gearing at the low-end of our target range
• Declared a final dividend of US 55 cps, bringing the full-year dividend to US 91 cps

Key business activities

Base business

• Achieved record LNG production rates at Pluto LNG
• Recorded the lowest total recordable injury rate of 0.9 per million work hours
• Completed major turnarounds at Pluto LNG and NWS Project
• Delivered the 500th LNG cargo from Pluto LNG

Near-term growth

• Delivered Greater Enfield Project on schedule and budget
• Achieved FID on Pyxis Hub
• Achieved FID on Julimar-Brunello Phase 2

Burrup Hub

• Executed FEED for Scarborough and Pluto Train 2
• Increased Scarborough estimated contingent resource (2C) volume by 52%
• Agreed the tolling price for processing Scarborough gas through the Pluto LNG plant
• Completed basis of design work and progressed regulatory approvals for Browse
• Approved the pipeline component of the Pluto-KGP Interconnector
• Executed a sale and purchase agreement with Uniper for long-term LNG supply

Sangomar Field Development, Senegal

• Received approval of the Exploitation Plan and other regulatory approvals
• Achieved FID on Sangomar Field Development Phase 1 in January 2020
• Awarded major contracts

A-6 Development, Myanmar

• Completed concept select phase
• Commenced pre-FEED phase
• Finalised revised fiscal terms.

Link to Woodside Australia country profile