Woodside share price plunges 6% following up-and-down quarter

The market is seemingly disappointed by the company’s performance over the March quarter.

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Key points

  • The Woodside share price is tumbling lower, currently down 5.11% to trade at $30.43
  • The drop follows the release of the company's latest quarterly report for the three months ended 31 March
  • Woodside's revenue fell 17% quarter-on-quarter, but it was more than double that of the prior comparable period

The Woodside Petroleum Limited (ASX: WPL) share price is tumbling on Tuesday following the release of the company’s latest quarterly report.

Woodside’s revenue and production slipped last quarter while its average realised sales price increased.

At the time of writing, the Woodside share price is $30.43, 5.11% lower than its previous close. In early trade, it fell as low as $30 a share.

Let’s take a look at how the oil and gas company performed over the three months ended 31 March 2022.

Woodside share price plummets on quarterly update

  • Total revenue of US$2,395 million for the quarter
  • Produced 22.3 million barrels of oil equivalent
  • Sales volumes of 25.5 million barrels of oil equivalent
  • Average realised oil price of US$93 a barrel

Woodside’s revenue for the period was 17% lower than that of the December quarter. Though, it was more than double that of the prior comparable period.

The company noted the drop in revenue was due to lower trading activity.

Additionally, its production slowed by 1% compared to that of the previous quarter following maintenance and weather events.

Woodside’s average realised oil price increased 3% on that of the previous quarter and 111% on that of the first quarter of 2021.

What else happened in the quarter?

The last quarter was a busy period for the oil and gas producer.

It saw the global market for oil and gas further tighten in the face of Russia’s invasion of Ukraine, according to Woodside CEO Meg O’Neill.

The company spent time last quarter working towards its merger with the BHP Group Ltd (ASX: BHP) petroleum business. Information on the merger was released to the market in early April.

Woodside also completed the sale of a 49% interest in the Pluto Train 2 joint venture and commenced processing Pluto gas at the Karratha Gas Plant.

The company’s Scarborough Field Development plan has now received approvals and work is continuing at the Sangomar Field Development.

Finally, Woodside agreed on the long-term charter hire of three new LNG carriers.

The Woodside share price gained 46% last quarter.

What did management say?

Commenting on the company’s quarterly performance and outlook, O’Neill said:

The implications of Russia’s invasion of Ukraine have reverberated globally, exacerbating already tight energy markets, particularly for LNG. This has resulted in unprecedented volatility and price spikes to levels not seen since the early part of last decade …

We expect in the second quarter to see the continued benefit of stronger pricing, reflecting the oil price lag in many of our LNG contracts.

Woodside share price snapshot

Today’s dip hasn’t been enough to send the Woodside share price into the long-term red.

The company’s stock is currently trading around 34% higher than it was this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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