The Woodside Petroleum Limited (ASX: WPL) share price is down 0.49% after the company released its half year report to 30 June, 2020. At the time of writing, the Woodside share price is trading at $20.41.
What was in the announcement?
Woodside had operating revenue of US$1.91 billion in the first half of 2020. This was down from operating revenue of US$2.26 billion in the first half of 2019. The company produced 50.1 million barrels of oil in the first half of 2020.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was US-$4.3 billion in the first half of 2020, this compared to positive EBITDA of US$1.46 billion in the first half of 2019.
Net profit after tax was US-$4.07 billion in the first half of 2020 compared to a positive net profit after tax of US$419 million in the first half of 2019.
Underlying net profit after tax, which excluded asset impairments and provisions for a loss generating contract, was US$303 million in the first half of 2020, compared to US$419 million in the first half of 2019.
Earnings per share for the first half of 2020 was US-$4.30 compared to 44.8 US cents in the first half of 2019.
The company declared an interim dividend of 26 US cents per share, representing 80% of underlying net profit after tax.
Woodside CEO, Peter Coleman, commented on the results, stating;
"I would rate the external conditions created by the COVID-19 pandemic and oversupply in global oil and gas markets as the most difficult I've seen in nearly four decades in the industry."
Woodside began 2020 in a strong financial position, built over the previous two years as we prepared for a period of increased capital spending. This position has been consolidated through the first half thanks to the strong performance of our high-reliability, low-cost operations.
Our balance sheet strength and disciplined approach to capital management ensures we can deliver appropriate returns to shareholders. It also allows us to progress our existing strategic growth plans, and provides optionality to pursue the right external opportunities, should they arise.
Woodside's operational performance during the first half was nothing short of outstanding. In February, we successfully weathered Tropical Cyclone Damien – the most severe storm ever to pass over our Western Australian facilities – with very limited impact on production.
In the immediate wake of Damien, we faced the emerging challenge of COVID-19, requiring us to take swift and decisive action to protect our workforce, communities and operations, and ensure safe and secure gas supplies to customers in Western Australia and overseas.
The record production achieved in the half is a credit to our people's ongoing commitment to sustained operational excellence, helping Woodside deliver underlying net profit after tax of $303 million, despite the challenging market conditions."
About the Woodside share price
Woodside is a petroleum exploration and production company and is Australia's largest oil and gas producer. Woodside has assets in Australia and abroad, with its countries of operation including Senegal, Myanmar, Timor-Leste and Canada.
The Woodside share price is up 36.7% since its 52-week low of $14.93, however, it has fallen 40.79% since the beginning of the year. The Woodside share price is down 38.23% since this time last year.
