Woodside Energy reaches two-week peak after increasing 2025 production forecast

Woodside Energy shares rose to their highest level in two weeks on Wednesday, despite a 9.4% drop in revenue for the third quarter due to lower average realized prices.

The largest independent energy company in the country expects its fiscal 2025 production will be between 192 and 197 millions barrels of oil-equivalent, higher than their previous forecast of 188 to195 mmboe.

The company's shares rose up to 4.1%, reaching A$23.31 at 2316 GMT. If current trends continue, this will be the best day for the stock since late July, while the overall market fell 0.7%.

The company's strong performance, especially at its Sangomar Project in Africa, and its "outstanding reliability" in the Pluto LNG and North West Shelf project in Australia drove higher third-quarter output and an upward revision of the output forecast for fiscal 2020.

Woodside produced 50.8% more mmboe in the first quarter of this year than it did last year (53.1 mmboe).

The top independent oil producer in the United States reported revenue of $3.36 Billion for the quarter ending September 30. This is lower than the $3.68 Billion it reported last year.

Visible Alpha's consensus forecast of $3 billion was beaten by this amount.

The average realized price of $60 per boe for the third quarter is lower than last year's $65 per boe.

Woodside was granted the final approval by Australia in mid-September to operate the North West Shelf Project -- the oldest and second largest liquefied gas plant in Western Australia.

In its statement, Woodside said that it had assessed the amount of work needed to meet federal requirements and there was no increase in capital expenditures expected to maintain North West Shelf production. Reporting by Shivangi lahiri in Bengaluru and Roshan Thomas; editing by Alan Barona, Maju Samuel

(source: Reuters)