2015 full-year results briefing Peter Coleman Chief Executive Officer and Managing Director 17 February 2016
Key messages A resilient business model Strong balance sheet Maintaining liquidity and flexibility Relentless focus on productivity and reliability Executing our strategy and delivering on what we control 2015 full-year…
Achievements Delivered operating and development commitments Achieved second highest production result, 92.2 MMboe Improved safety performance by 60% since 2012 Met project deliverables Achieved reserves and resources growth 2P…
Financial headlines Profit: US million1 Net profit after tax (NPAT) 26 NPAT excluding one-off non-cash items2 1,126 Full-year dividend 109 cps3 Cashflow: Operating cash flow 2,376 Break-even cash cost of sales 11/boe Unit…
Safety and Environment Continued multi-year progress to top-quartile international performance 5.0 Safety TRIR per million hours worked 4.0 3.0 No Tier 1 process safety events 2.0 1.0 TRIR improved 60% over 4 years 0.0 2011…
Strategy is delivering value Managing the things we control 2011 2015 Dividends Cps 110 109 7 billion fully franked dividends over five years Unit production cost /boe 7.51 6.83 Unit production cost down 9% Contingent Resources (2C)…
2015 choices made Our response to a changing environment demonstrates resilience of our strategy Responded to external environment Reduced cost; reduced staff; reorganised; froze wages External Maintained balance sheet strength…
2016/2017 Maintaining resilience Maintain a strong balance sheet Business planning based on 35/bbl oil DRP reactivated to preserve cash Continue implementing our strategy Prudent decisions to support credit rating 2015…
Reported profit Reduction due to lower commodity prices and impairments 2,500 2,414 2,580 2,000 Revenue down 36% 1,500 Oil prices down 46% 1,000 Oil price impact partly offset by LNG contracts USm 500 79 969 51 26 One…
Production Our second highest result of 92.2 MMboe, down 3% from 2014 record Production 100.0 Pluto turnaround executed ahead of plan 90.0 Increased LNG plant capacity 80.0 70.0 NWS increased from 16.3 to 16.7 mtpa 60.0 Pluto…
Unit production costs Continued cost reduction over the past three years Gas 400 Oil 70.00 500 Pluto turnaround Balnaves oil 429 14.00 350 338 450 60.00 409 304 293 300 400 364 12.00 300 354 266 50.00 350 38 10.00 250 300 63…
Liquidity Negligible debt maturities in 2016 and 2017 Debt maturity profile Raised 4.1 billion of new and refinanced 1,500 debt in 2015 Pre-tax portfolio cost of debt 2.9% p.a. at December 2015 1,000 1.7 billion in cash and…
Productivity program 700 million in benefits in 2015 Target 2015 Production volume increases through reliability 3-5% 9% 1 and capacity improvements provided more than half the benefits 10-20% 20%2 Expenditure savings are at the…
Business update
Wheatstone Julimar on schedule, Wheatstone delayed but LNG contracts can be met Impairment reflects lower short and long term oil price assumptions Julimar Project1: 80% complete at 31 December Targeting ready for start up 2H 2016…
Greater Enfield Our focus is on delivering value improvements Key 2015 activities: Entered FEED phase in August 2015 Issued preliminary FDP1 Future activities: Technical activities and value improvement Further cost saving…
Browse FLNG Development Browse working hard to deliver an economically robust project Key 2015 activities: Entered FEED Granted Commonwealth and State retention lease renewals Image courtesy of Shell Future activities: Require…
Global exploration strategy Maturing and high grading prospects Rebalancing portfolio Considerable progress made Reduced exposure to frontier and increased exposure to emerging acreage (proven hydrocarbon systems with upside potential)…
Myanmar Back to back discoveries: a key portfolio focus area off to a great start Early mover strategy delivers 47,000 km2 acreage Diversity in play type and commercialisation options Material equity position and strong…
Recap A resilient business model Strong balance sheet Maintaining liquidity and flexibility Relentless focus on productivity and reliability Executing our strategy and delivering on what we control 2015 full-year results…
Appendix 1 Business activities
Reserves and resources Reserves Replacement Ratio of 276% Proved plus Probable (2P) Annual Total Reserves Replacement Ratio 276% Reserves Replacement Ratio (Total) Increased reserves and contingent resources 2P reserves up 12.7%…
Reliability and Capacity Increasing reliability and capacity Pluto LNG reliability 100 Reliability: 97.1 96.9 Pluto achieved top-quartile performance Average reliability (%) NWS impacted by electrical incident 90.7 90 LNG…
People Continuing to grow a culture for a long-term sustainable future Resourcing levels 4,084 3,764 Reduction of 652 FTEs in two years 3,432 2015 graduate intake of 108, up 5% on 2014 Females comprise: FTEs 49% of graduate…
NWS High investment return tie-back projects extend NWS plateau GWF-1: First gas received from Goodwyn GH field in late 2015 Tidepole field production in early 2017 Unit development costs (UDC1) of US7.00/boe Persephone: Scheduled…
Kitimat LNG Appraising the Liard resource Key 2015 activities: Drilled four appraisal wells in Liard basin Completed two proof of concept wells each with over a 2,250 m horizontal length Wells being brought on-line with early flow…
Development pipeline Currently few commitments after 2016 2016 2017 2018 2019 2020 US m1 Committed projects 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H NWS GWF 1 290 Persephone 140 GWF 2 330 2 Wheatstone 1,858 Wheatstone Julimar Uncommitted…
Global exploration pipeline Drilling and seismic activities maturing with low commitments 2016 2017 Size(1) Target Drilling Q1 Q2 Q3 Q4 Q1 Q2 Australia Beagle Basin Skippy Rock Medium Oil Stokes (4) Small Oil WA-483-P Swell Large…
Appendix 2 Financial Annexure
Operating revenue Operating revenue of 5,030 million down 32%, Brent oil price down 46% 12,000 120.00 111 112 109 99 10,000 100.00 Decreased revenue from: Average Brent oil price (US/bbl) Price impact: 2,393 million…
Product pricing LNG contracts provide some protection against a 50% oil price reduction US/boe USm % Revenue Products 2015 2014 Variance impact NWS LNG 45 73 (38) (636) LNG price change reflects: Pluto LNG 59 81 (27) (776) Pluto…
Cash costs and margins Low LNG cash costs of sales drive continued strong cash margins Weighted average unit cash margins trend 2015 unit cash margins by business unit 58 58 62 51 27 39 50 38 0 US/boe 29 US/boe 8 8…
Sources and uses of cash 10,000 2015 8,000 2016 cash flow from operations is expected 6,000 to exceed committed investment expenditure, USm notwithstanding current prices 4,000 2,000 0 Sources Uses Cash flow…
Capital management Gearing within target range of 10% - 30% following acquisition of assets Net debt and gearing 40 35 5,000 28.6 30 26.3 Acquisition of Wheatstone, Net dbet (USm) 25 % gearing Target 23.3 Balnaves…
Dividend US43 cents per share fully franked final dividend Full-year dividends per share 303 269 Final dividend of US43 cps1 US cps 154 2 Full year dividend of US109 cps1 (AUD154 cps)2 127 249 255 Represents an 80%…
Dividend calculation 2015 NPAT adjusted for one-off non-cash items Calculation of dividend Pre-tax Post tax (US millions) (US millions) Reported full year NPAT 26 Adjustments: Impairment of oil & gas properties 1,083 756 Pluto…
Impairments of oil and gas properties Impairments after tax totalled US756 million 2015 Impairments USm Pre-tax Post-tax Oil price assumptions: Enfield 18 8 Balnaves 10 7 2016-2018: 31 December forward curve Laminaria-Corallina (95)…
Segment performance NWS and Pluto contribute the majority of EBITDA and are robust to low prices Business Unit performance NWS1 Pluto Aus Oil NWS and Pluto margins Production volume (MMboe) 44.7 37.5 9.8 remain substantial even in a…
Consensus 2015 NPAT adjusted for one-off non-cash items and dividend ahead of consensus Analyst Woodside consensus Variance NPAT adjusted for one-off non-cash items m 1,126 1,012 114 Final dividend US cps 43 32 11 2015…
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