Reporting season: Woodside
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Q: Were Woodside's earnings above, in line or below your expectations?
Mark Taylor: Well, they were in line with consensus and marginally ahead of our $1.6 billion forecast. They came in at $1.7 billion in what was a pretty pleasing result overall. Net operating cash flow, excluding exploration of $2.2 billion was a little bit below expectations, but neither here nor there really was a very strong cash and P&L result.
Q: What were the key drivers of the result?
Taylor: Well, the key driver was commodity prices. They rose quite considerably, the oil price and the gas price. And that offset a modest decline in production, down about 10%, which resulted from the cyclone activity on the west coast and also some major maintenance and refurbishment work that was done on the North West Shelf.
Q: Was there anything about the result that surprised you?
Taylor: Not about the result itself, but there was some positive news on one of the latest Pluto drill holes, which intersected a 190 meter gross gas column, so that's more good news as far as the likelihood of that project, expanding in the future. So that was a positive surprise.
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