Not convinced myself. Pluto is barely a break even proposition...

Not convinced myself.

Pluto is barely a break even proposition as I understand it. When it made FID Don Voelte made the point it just made it on internal hurdles and to really work, more gas was needed from own sources or third party.

Since then the cost has blown out and Pluto Reserves are thought to be a lot smaller. Exploration has failed and third parties have chosen Wheatstone over Pluto.

Pluto was largely funded out of borrowings, some at a reasonably hefty interest rate. These will have to be paid back, according to their terms, as a priority I would have thought.

Production is one thing. Free cash is another.

Pluto needs a second train for WPL to get a real boost as Browse is going nowhere and Sunrise is also stalled.

Note WPL is, again, rebuilding an overseas presence.

Unfortunately they have lost a lot of the people who went through this last time round (the good ones at least) and will be making the same mistakes all over again.

Also, WPL has missed the shale train right in its own backyard.

The focus on LNG only has cost and the rebuilding is going to take some time.