The Woodside Energy Group Ltd (ASX: WDS) share price is on the move on Thursday.
In morning trade, the energy giant's shares are up 5% to $34.20.
This follows the release of Woodside's third quarter update this morning.
Woodside share price jumps on record Q3 performance
Here's how Woodside performed in comparison to the second quarter of FY 2022:
- Record production of 51.2 MMboe, up 52%
- Record sales volume of 57.1 MMboe, up 59%
- Record revenue of US$5,858 million, up 70%
What happened during the quarter?
For the three months ended 30 September, Woodside reported a 70% quarter on quarter increase in revenue to US$5,858 million. This was driven by a 52% increase in production and a 7% lift in the average realised price of US$102 per barrel of oil equivalent.
This was driven largely by the inclusion of the BHP Group Ltd (ASX: BHP) petroleum assets. As the demerger completed at the start of June, they only featured for one month during the second quarter, whereas they made a three-month contribution to Woodside's third quarter results.
Woodside hasn't provided any information on its margins, costs, or earnings for the period. Though, it has bumped its exploration expenditure guidance up by US$100 million to the range of US$500 million to US$600 million. This reflects its decision to exit from its exploration position in the Orphan Basin, offshore Canada. Management expects this decision to impact FY 2022's net profit after tax by approximately US$140 million.
Management commentary
Woodside's CEO, Meg O'Neill, said:
This is our first full quarter following the merger and these results demonstrate the new, expanded Woodside is delivering what we promised: safe, reliable energy from a more diverse portfolio. Production for the period was 51.2 million barrels of oil equivalent (MMboe), up 52% from the second quarter and more than twice the level in the corresponding period of last year.
Sales volume for the third quarter climbed 59% from the preceding three months to 57.1 MMboe. Revenue increased 70% to $5,858 million, reflecting both higher sales volume and average portfolio realised price, which rose 7% to $102 per barrel of oil equivalent.
Outlook
Also giving the Woodside share price a boost today was an upgrade to the company's full year production guidance.
Management advised that it now expects production of 153 MMboe to 157 MMboe. This compares to its previous guidance of 145 MMboe to 153 MMboe.
