2014 full-year results Peter Coleman CEO and Managing Director 18 February 2015
2014 Results Sustained strong financial and operating results Improved safety performance 50% reduction in lost time injuries Record production 95.1 MMboe Strong financial result Reported NPAT 2.414 billion Return on equity…
Key messages Our strategy is delivering results Top quartile LNG reliability Maximise Delivered 560 million in productivity improvement benefits core A more efficient, lower cost E&P company Pluto LNG pricing increased Leverage…
Market environment The current low oil price environment may continue for an extended period New dynamics are being tested in the market Unconventional oil OPEC role Near term: Price driven by cost of incremental supply Medium…
Our response Business plan revised to reflect an extended low oil price environment Reduced 2015 base business expenditure relative to original plan: operating expenditure down 15% investment expenditure down 20% Organisation…
Growth pipeline Existing growth pipeline is well placed to meet expected demand 12 Woodside net LNG capacity Global LNG supply and demand 10 200 Mtpa supply must come on-line to support 2030 500 demand Net LNG capacity (mtpa)…
Financial headlines Record full-year financial results, with increased realised prices, and reduced cost Income Reported Net Profit after Tax of 2.414 billion, up 38% Statement Record underlying Net Profit after Tax of 2.421 billion,…
Production Record production of 95.1 MMboe, up 9%, reflecting our focus on reliability 1.8 1.2 3.1 0.6 Gains from: 100 4.5 0.4 95.1 4.7 90 87.0 Full year of production from the 80 Vincent FPSO 70 Higher reliability at Pluto…
Product pricing Increased volume weighted average realised pricing from increased oil volumes and LNG re-pricing Average realised price Pluto LNG pricing increased 49%: All in US/boe 2013 2014 Variance NWS LNG 77.43 73.46 (3.97)…
Operating revenue Record operating revenue of 7,435 million, up 25% Increased revenue from: 9,000 112 120 111 109 Pluto LNG pricing: 958 million 8,000 99 100 Vincent production: 486 million 7,000 7,435 Average Brent oil…
Unit production costs Reliability and efficiency focus deliver lower unit production costs Gas Oil 500 400 70.00 429 14.00 450 350 338 409 60.00 400 12.00 304 300 293 Unit production costs (US/boe) 354 Unit production…
Gross cash margins Vincent refurbishment and Pluto marketing efforts deliver higher unit cash margins Unit cash margins trend 2014 unit cash margins by business unit 7 1 9 8 10 8 7 Unit cash margins (US/boe) 8 8 Unit cash…
Productivity program initiatives Improvements delivered 560 million in benefits in 2014 Targeted benefits by 2016: 2014 improvements: 3-5% uplift in production Delivered 330 million benefit from volumes from existing assets a 4.6%…
Reported NPAT Reported NPAT of 2,414 million up 38% on 2013 1,509 289 Operating revenue increased 86 16 136 predominantly due to Pluto pricing, 312 Vincent production and trading revenue 37 2,414 Cost of sales increased due to…
Impairments of oil and gas properties Impairments after tax totalled US196 million 2014 Impairments Pre-tax Post Tax USm USm Impairments driven mainly by: Enfield 179 77 lower oil price assumption Stybarrow 60 25 increased…
Investment expenditure 2015 base business investment expenditure reduced 20% relative to original plan 5000 Pluto 220 million Xena development costs, development well 4000 sustaining capex 20m Expenditure (USm) 2,300 506 NWS…
Liquidity 6.8 billion in cash and undrawn facilities available to fund growth 10,000 2,000 Drawn debt maturity profile Cash and debt position 8,000 1,600 3268 6,000 1,200 USm USm 3550 4,000 800 2,000 400 2600…
Capital management Strong balance sheet positions us for growth and enables us to endure a low oil price environment 6,000 Free cash flow Strong operational performance delivers 4,000 Cash flow (USm) Over 10 billion free cash…
Dividend Record US144 cent fully franked final dividend, up 40% on 2013 final dividend Full-year dividends per share 300 294 253 249 63 63 Record full-year dividend of US255 209 200 183 207 cents per share underpinned by:…
Dividend calculation methodology Net impact of impairments added back for dividend calculation Calculation methodology US 2014 The 2014 final dividend calculation is based on our Reported NPAT m 2,414 underlying profit adjusted for…
Segment performance All business units continue to produce strong gross margins Business Unit performance NWS1 Pluto Aus Oil Contribution to operating revenue: Production volume (MMboe) 46.3 40.2 8.4 NWS, 40% Operating revenue…
Consensus 2014 profit and dividend in line with Analyst consensus Analyst NPAT and dividend results are Woodside Consensus Variance consistent with Analyst Reported NPAT USm 2,414 2,385 29 expectations Underlying NPAT equates to…
Underlying NPAT reconciliation Non-recurring items added back to underlying NPAT to form a record result 2013 2014 Variance MMboe MMboe % Production volume 87.0 95.1 9 Sales volume 85.7 93.2 9 USm USm Variance % Sales revenue…
2015 outlook 2015 Production split Production guidance 2015 Target range: 84 to 91 MMboe1 Apache asset purchase2 is expected to be 3 to 4 26% MMboe3 based on a targeted close of 31 March 2015 38% NPAT sensitivities 2015 Brent…
2014 full-year results Peter Coleman CEO and Managing Director Business update
2014 achievements Record production of 95.1 MMboe Operations Productivity improvement initiatives delivering increased reliability and cost savings Completed basis of design work for Browse FLNG Developments Persephone project…
Safety Substantial progress towards top-quartile performance Lost Time Injury (LTI) and LTIF Total recordable injury rate LTI frequency per million hours worked 6 25 1 Woodside (actual) 0.9 Total recordable injury rate…
Environment and Community engagement Committed to protecting the environment and supporting the communities where we operate Flare gas and intensity1 Environment 500 16 Flared gas intensity (tonne/kilotonnes hydrocarbon…
People Growing a culture for a long-term sustainable future Graduate recruitment by gender 100 80 Graduate intake of 103, a 45% increase 59 on 2013 Number of recruits 60 37 Females comprise: 43% of our 2014 graduate…
Operations Improving reliability and reducing unit production costs NWS LNG reliability 100 97.6 97.4 Average reliability (%) 95.6 94.2 92.8 Top quartile LNG reliability was achieved: 90 NWS 97.4% Pluto 97.1% 80 10 11 12…
Browse FLNG Development Driving down cost during oil price downturn Completed technical elements of basis of design Primary approvals significantly progressed Pursuing cost efficiencies for the development FEED targeted for…
Business Development Apache asset acquisition provides growth optionality In December 2014, we entered into a binding transaction with Apache Corporation to acquire Apaches Wheatstone LNG and Balnaves oil project interests and…
Development pipeline Development projects are progressing with a focus on reducing unit development cost 2014 2015 2016 2017 2018 2019 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H Browse NWS GWF 1 Persephone GWF 2 Lambert Deep Pluto…
Global exploration 2014 accomplishments In 2014 we continued to rebalance and grow our global portfolio Five new country entries: Cameroon, Canada (Nova Scotia), Gabon, Morocco and Tanzania. Lord Consolidated positions in:…
Global exploration 2015 aggregation In 2015 we will look to aggregate and high grade positions in our three focus areas Atlantic Margins Sub-Saharan Africa Australasia and SE Asia Ireland Myanmar Cameroon Nova Scotia Morocco…
Global exploration pipeline Drilling activities targeting gas near NWS and Pluto, large oil in Africa and large gas/oil in SE Asia (1) 2015 2016 Size Target Drilling Q1 Q2 Q3 Q4 Q1 Outer Canning Anhalt Large Gas Pluto Pyxis Medium…
Reserves growth Apache purchase will deliver a reserves uplift Proved plus probable reserves 2,000 279 10 1,628 1,500 The purchase of Apaches interests 1,339 in Wheatstone and Balnaves is expected to: MMboe +22% 1,000…
2015-2016 priorities ACTIVITIES ACROSS THE VALUE CHAIN ACQUIRE APPRAISE AND TRADE AND DIVEST DEVELOP OPERATE TRANSPORT EXPLORE DECOMMISSION ACQUIRE: BROWSE: NWS: PORTFOLIO: DECOMMISSION: Complete Apache asset Targeting: FLNG…
Priorities 2015 and beyond Maintain focus on operational excellence and safety performance Relentlessly drive down and re-set costs within our business Build value-adding growth opportunities, organically and inorganically…
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