Lower oil prices have claimed another hunt with Woodside Petroleum, Australia's major oil and gas producer, which has revealed an asset-value write-down of $ 3.92 billion.
About two-thirds of non-cash loss charges relate to oil and gas assets and one-third to exploration and valuation assets.
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Woodside chief executive Peter Coleman said the company was in a strong financial position despite the write-down.
He said that they have low-gearing as well as high liquidity, and notified significant expenditure deduction actions in the month of March.
Woodside's writing follows similar steps by the world's oil majors as they struggle with a crashing oil price that also entered a level of negative territory this year.
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A more reliable way of looking at oil is the step-down process that has seen Brent-quality crude slide prices from $ 85 per barrel in mid-2018 to $ 60 per barrel in the middle of last year and now below $ 40 / hour.
BP and Shell lead write-downs
Other recent write-downs include a $ 17.5 billion fee charged by BP and a $ 22 billion write-down by Royal Dutch Shell.
Coleman said the oil and gas asset fee was $ 2.76 billion while the exploration and valuation fee was $ 1.16 billion.
Us Financial accounts for a liquefied natural gas contract with oil and gas producer Chenier Energy are expected to include $ 447 million "non-cash, post-tax, superb contract provisions."
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The combined effect of impulses and joint contract provision is a post-loss of $ 4.37 billion, a charge that is not expected to materially impact the company's balance sheet.
Oil-price caused the most losses
Woodside said in a statement that about 80% of its oil and gas losses were caused by "significant and immediate reductions in oil and gas prices assumed by 2025".
Coleman said Woodside has taken some drastic decisions in recent months in response to the Covid-19 epidemic and over-supply of oil and gas in key markets.
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Coleman said that Woodside's focus is on financial safety, equity strength and maintaining the stability of our balance sheet.
On the stock market, Woodside shares were stable today (Tuesday) at $ 14.77. They are down 38% since the beginning of the year but have dropped to $ 10.50 since mid-March.
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