Woodside takes up to $140 million impairment

7/18/2013

Woodside takes up to $140 million impairment

BY ROSS KELLY

SYDNEY -- Woodside Petroleum said that early design work on projects that were never built will shave up to $140 million from its first half profit.

BHP Billiton said it expects to book an impairment charge of between $120 and $140 million for the six months to June 30. Last year, Woodside booked a first half profit of $812 million.

The blow is partly related to the cost of early design work on an expansion of its Pluto gas export plant in Western Australia state, which was later put on ice after Woodside failed to enough gas in an expensive drilling campaign.

Costs associated with planning the development of the Laverda oil discovery, also offshore Western Australia, contributed to the writedown, Woodside said.

Separately, the company said oil production fell 0.6% to 20 MMboe in the three months to June 30. Quarterly revenue fell 6% to $1.35 billion due to a longer than expected shutdown of its Vincent oil production facility.

Dow Jones Newswires

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