Bulletin: Weak Oil Prices Continue To Pressure Woodside Petroleum Ltd.; Ratings Unaffected By Profit Fall

MELBOURNE (S&P Global Ratings) Aug. 19, 2016--S&P Global Ratings today said that its ratings on Woodside Petroleum Ltd. (Woodside; BBB+/Negative/--) are not immediately affected by the 50% drop in the company's profit for the first half ended June 30, 2016, compared with the corresponding period a year ago. The severe decline in oil prices to a low of US$28 per barrel at the start of 2016 has significantly reduced Woodside's profits. However, lower production costs have partly offset the impact of the earnings fall. Compared with the first half of 2015, Woodside's unit production cost was 38% lower and its net cash from operating activities improved by 4%. Woodside has suspended its dividend reinvestment plan and will pay out US$286

...MELBOURNE (S&P Global Ratings) Aug. 19, 2016--S&P Global Ratings today said that its ratings on Woodside Petroleum Ltd. (Woodside; ###+/Negative/--) are not immediately affected by the 50% drop in the company's profit for the first half ended June 30, 2016, compared with the corresponding period a year ago. The severe decline in oil prices to a low of US$28 per barrel at the start of 2016 has significantly reduced Woodside's profits. However, lower production costs have partly offset the impact of the earnings fall. Compared with the first half of 2015, Woodside's unit production cost was 38% lower and its net cash from operating activities improved by 4%. Woodside has suspended its dividend reinvestment plan and will pay out US$286 million to shareholders on Sept. 30, 2016. Weak oil prices and elevated debt levels will continue to pressure Woodside's credit metrics in calendar 2016. We expect the company's funds from operations (FFO)-to-debt ratio would remain less than 45% and would not...

Bulletin