Woodside revenue dives as fossil fuel prices dip

Sluggish production and falling fossil fuel prices have slashed revenues at Australia’s largest oil and gas producer Woodside by almost a third.

The Perth-based company’s revenue for the first quarter fell 31 per cent compared to the previous year to $US2.97 billion ($A4.66 million), it announced on Friday.

Over the same period, production dropped by four per cent while gas and oil prices slumped by a quarter.

Despite the lacklustre result, chief executive Meg O’Neill said significant progress had been made on Woodside’s three major growth projects – Sangomar in Senegal, Scarborough in WA and Trion in the Gulf of Mexico.

Sangomar is now 96 per cent complete with first oil targeted by mid-2024, Ms O’Neill advised.

Woodside CEO Meg O’Neill has played down the company’s heavy loss in revenue. (Bianca De Marchi/AAP PHOTOS)

Full year production and capital expenditure guidance remained unchanged.

The drop in revenue was largely in line with consensus estimates, but sales and production levels were lower than expected, RBC Capital Markets analyst Gordon Ramsay said.

“Timing of product sales, plus weather-related factors, facility reliability and a production shut-in were key reasons for the sales and production miss,” he said.

Woodside’s board is set to face a feisty reception from shareholders at its annual general meeting on Wednesday.

The company’s share price has fallen by a quarter in the past eight months while critics have attacked its climate credibility.

Proxy advisers, including the Australasian Centre for Corporate Responsibility, recommended shareholders to vote against chairman Richard Goyder and Woodside’s Climate Transaction Action Plan at the meeting.

In a plea to shareholders earlier in April, Mr Goyder said the board was simply “being honest” about the realities of the energy transition.

Woodside shares had dropped 1.1 per cent to $29.14 on Friday afternoon after earlier being up whipsaw trading.

Crude oil prices shot up then crashed back down after reports Israeli missiles had struck Iran, raising fears for oil supplies as conflict in the Middle East heats up.