Brief article that sums it all up really.. WOODSIDE Petroleum...

Brief article that sums it all up really..

WOODSIDE Petroleum will slash spending and is expected to cut its dividend as plummeting oil prices hit revenue.

The company, Australia’s biggest pureplay energy producer, has revealed the slumping oil price contributed to a 10 per cent slide in revenue over the past three months.

In a trading update on Thursday, Woodside said sales for the December quarter clocked in at $1.76 billion, down from $1.96 billion the previous quarter.

Oil prices have halved since August and hit a five-year low this week. While they jumped overnight on Wednesday, they were sliding again last night.

“In light of the current challenging market conditions which has seen crude oil pricing decrease, Woodside is assessing the impact on near term profitability and cash flows, and revising investment expenditure accordingly,” the group said in a statement.

Woodside received an average of $US77 a barrel for Brent crude in the December quarter, down 25 per cent from more than $US103 the previous quarter. Brent, a global benchmark, was last night trading at $US46.08.
Ongoing oil price weakness could lead to impairment charges and job losses, Fat Prophets Resources analyst David Lennox said.

“Woodside’s full year result will be impacted positively on volumes but revenue is going to be a challenge,” he said.
JP Morgan analysts this week estimated Woodside’s 2015 dividends could fall sharply — to US64c a share if oil prices stay at current levels.
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