Woodside Sales Fall 27% After Project Shutdowns in Australia

Woodside Petroleum Ltd. (WPL), Australia’s second-largest oil and gas producer, posted a 27 percent drop in third-quarter sales after a temporary interruption at its Pluto liquefied natural gas project.

Revenue declined to $1.34 billion, from $1.83 billion a year earlier, the Perth-based company said today in a statement. That missed estimates of $1.51 billion from UBS AG and $1.46 billion from JPMorgan Chase & Co.

Woodside earlier this year cut its full-year production forecast after an unplanned shutdown at its A$15 billion ($14 billion) Pluto LNG plant in Western Australia. The company said July 18 that Pluto had resumed. A delay in restarting its Vincent oil project off the west coast also reduced output.

Woodside fell as much as 1.6 percent to A$37.91 and traded at A$38.01 as of 10:58 a.m. Sydney time. Australia’s benchmark S&P/ASX 200 Index climbed 0.6 percent.

Production fell 17 percent to 21.9 million barrels of oil equivalent from 26.5 million barrels a year earlier. This compared with the 21.8 million barrel median estimate of three analysts surveyed by Bloomberg.

Negotiations on new contract prices for Woodside’s LNG sales continued during the quarter, with those agreements set to take effect in April, according to the statement.

The company is waiting for a court decision in Israel before completing an agreement to invest in the Leviathan gas project in the country. Israel’s high court is scheduled Oct. 20 to consider whether the cabinet’s natural gas export plan needs to be approved by the parliament, Woodside said.

Woodside opened a trading office in Singapore and is scheduled to take delivery this month of a long-term charter ship to tap the spot market, the company said.

To contact the reporter on this story: James Paton in Sydney at jpaton4@bloomberg.net

To contact the editor responsible for this story: Andrew Hobbs at ahobbs4@bloomberg.net

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