Oil & Gas

Woodside’s Shares Slide Over Lower Production Outlook


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




Woodside CEO Expects High LNG Prices ‘For Next Few Years’

Woodside Backs Gates on Concentrated-Solar-Power Trial

Australia’s Woodside Exit from Myanmar to Cost $200m



George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

Recent Posts

China Quants Banking on AI to Gain Hedge Funds Edge

One hedge fund already uses ChatGPT to project earnings power, and identify investment opportunities and…

8 hours ago

Global Economy Showing Signs of De-Dollarisation, Says JPMorgan

"De-dollarisation is evident in FX reserves where [the dollar's] share has declined to a record…

10 hours ago

China Services Activity Speeds Up as Demand Recovers: Caixin

The survey saw firms reporting a rise in new business in May as China's Covid…

11 hours ago

Binance Controlled Bank Accounts of ‘Independent’ US Crypto Arm

New findings show how CEO Changpeng Zhao secretly retained control over Binance's US arm and…

11 hours ago

TSMC’s Tough Standards Could Hit Hunt for US Staff – Fortune

TSMC's workplace culture has come in for criticism by former workers, but the tech giant…

11 hours ago

Israel Likely to Play Big Role in Reducing AI Risks: Altman

OpenAI CEO Sam Altman predicted Israel, a country ranked high for machine learning systems, will…

12 hours ago