Australia’s Woodside (ASX:WPL) reported profits jumping to nearly US$2 billion in 2021 with core profit for the full year more than tripling due to elevated oil and gas prices.
Net profit for the year to December 31, 2021, rebounded strongly to US$1.983 billion, from a loss of US$4 billion in 2020.
Production was 91.1 MMboe and operating cash flow was $3,792 million, Woodside said today.
Woodside CEO Meg O’Neill said 2021 was a transformative year in which the foundations were laid for the company’s future.
“Woodside ended 2021 in a strong financial position. Our higher underlying full-year profit of $1,620 million and free cash flow of $851 million reflected our consistent operational performance, the improved price environment for our products and the proactive decisions made to manage our sales portfolio.
“November 2021 could be recorded as the most remarkable month in Woodside’s 67-year history, with the agreement to merge with BHP’s petroleum business and the final investment decisions on the Scarborough and Pluto Train 2 projects.
“Our agreement to merge with BHP‘s petroleum business is expected to create a global energy company which would have the cash generation and balance sheet strength to deliver shareholder returns through economic cycles, opportunities to realise ongoing synergies and greater capacity to participate in the energy transition.
“Completion of the merger is targeted for early June 2022, subject to a shareholder vote on the transaction targeted for 19 May 2022.
“The significant cash flow generated by the Scarborough and Pluto Train 2 projects is expected to provide returns to shareholders and help fund Woodside’s future developments and new energy investments.
“An important consequence of November’s final investment decisions is an increase of over 1.4 billion barrels of oil equivalent in Woodside’s Proved plus Probable (2P) Total Reserves.
“In January 2022, Woodside completed the sale of a 49% non-operating interest in Pluto Train 2, welcoming Global Infrastructure Partners into the project.
“Scarborough gas developed through Pluto Train 2 will be among the lowest carbon intensity sources of LNG delivered to north Asia, where customers are demanding lower-carbon energy to support their own emissions reduction targets. The first cargo is targeted for 2026.
“Execution of the Sangomar Field Development in Senegal is proceeding to schedule with the first well drilled and FPSO conversion activities ongoing. The subsea installation campaign is expected to commence in early 2022 and the project is on track for first oil in 2023.
“In 2021 Woodside strengthened our commitment to play a part in the world’s decarbonisation journey, both by reducing our net equity Scope 1 and 2 greenhouse gas emissions and advancing our plans to invest in the lower-carbon sources of energy our customers are seeking, such as hydrogen and ammonia.
“Through the year we made progress with our proposed hydrogen projects H2Perth, H2TAS and H2OK, and launched studies of large-scale solar energy and carbon capture and storage in Western Australia.
“These proposals are initial steps in our strategy to position Woodside as an early mover in the sector through our targeted $5 billion investment in new energy products and lower-carbon services by 2030,” she said.
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