Shares in Australia’s Woodside Energy Group fell another 0.5% on Friday morning, a day after a lowered production outlook sent the stock down more than 4%.
But the resources group said the outlook modification was technical and did not reflect smaller physical product volumes.
Woodside’s shares fell on Thursday after its full-year output was announced at between 88 million and 94 million barrels of oil equivalent (mmboe), down 4 mmboe from its previous forecast due to “new conversion factors”.
It said liquefied natural gas (LNG) and pipeline gas for production and reserves reported in barrels of oil equivalent (boe) had been calculated on a volumetric basis with a conversion factor of 5,700 standard cubic feet (scf) per boe.
It previously based its conversion on product-specific energy conversion factors for gas.
The change resulted in Woodside’s full year production guidance for LNG, excluding BHP’s assets, falling from between 71 mmboe and 74 mmboe to between 67 mmboe and 70 mmboe.
“Woodside confirms that there is no change to the physical product volumes underpinning the full-year 2022 production guidance issued by Woodside in January 2022, which did not include BHP Petroleum (BHPP) production,” the company said.
“There is also no impact on revenue as a result of the change in conversion factors announced in the Second Quarter 2022 Report.”
- Reuters, with additional editing by George Russell