The Woodside Energy Group Ltd (ASX: WDS) share price is rising following the release of its fourth quarter and full year update.
At the time of writing, the energy producer's shares are up 0.5% to $37.96.
Woodside share price higher on update
- Q4 production up 0.7% quarter on quarter to a record of 51.6 MMboe
- Full year production of 157,706 MMboe
- Q4 revenue down 12% quarter on quarter to US$5,160 million
- Record FY 2022 revenue of US16,851 million
What happened during the quarter?
For the three months ended 31 December, Woodside reported a 12% decline in quarterly revenue to US$5,160 million. This reflects an 8.5% decline in sales volumes to 52.2 MMboe and a 4% decline in its average realised price to US$98 per barrel of oil equivalent (boe).
This led to Woodside generating full year revenue of US$16,851 million, which was up 142% from US$6,973 million in FY 2021. The merger with the petroleum assets of BHP Group Ltd (ASX: BHP) played a key role in this increase.
In respect to production, Woodside delivered record production of 51.6 MMboe for the fourth quarter. This took its full year production to a record of 157,706 MMboe. Pleasingly, this was ahead of its guidance range of 153 MMboe to 157 MMboe.
How does this compare to expectations?
According to a note out of Morgans, its analysts were expecting full year production of 146MMboe and revenue of US$15,864 million.
This means that the company has smashed both estimates, which may explain why the Woodside share price is rising today despite oil prices sinking overnight.
Management commentary
Woodside's CEO, Meg O'Neill, was pleased with the company's strong finish to the year. She said:
The result lifted output for calendar 2022 to 157.7 million boe, surpassing guidance and marking the highest annual production in Woodside's history. Consistent strong operational performance and favourable operating conditions across the combined portfolio was a key driver in achieving record quarterly and full-year production.
Revenue for the period was $5,160 million, down 12% from the third quarter on the back of lower international crude oil and LNG prices and reduced trading activity. Woodside's average realised price was $98/boe, down from $102/boe in the preceding period.
Outlook
There has been no change to Woodside's guidance for FY 2023.
It continues to target production of 180 million to 190 million barrels of oil equivalent.