Woodside Petroleum Ltd|  Operating and Financial Review 19
Key movements
Sales revenue: price
Sales revenue increased due to higher realised prices. Our average
realised price increased by approximately 23% to $54/boe.
Average realised price
NWS LNG 48 38 26 225
Pluto LNG 57 47 21 372
Wheatstone LNG 59 45 31 99
Pipeline gas 15 20 (25) (24)
Condensate 71 55 29 126
Oil 71 56 27 62
LPG 69 60 15 3
Volume weighted
average realised prices 54 44 23 863
Brent average price 71 54 31
JCC (lagged 3 months) 68 51 33
1. 2017 amounts have been restated for the retrospective application of AASB 15. Refer to
Note E.10(b) in the Financial Statements for further details.
Sales revenue: volume
Sales volumes increased due to the ramp up of Wheatstone
LNG and strong LNG reliability. This more than oset the
revenue reduction from the planned Ngujima-Yin FPSO
suspension of operations in May 2018 for the Greater Enfield
Project, and from the NWS Project due to the timing of equity
cargoes and the equity percentage change for domestic
pipeline gas.
Royalties and excise
Royalties and excise expense increased primarily due to higher
NWS revenue.
Depreciation and amortisation
Depreciation and amortisation for oil and gas properties
increased primarily due to Wheatstone LNG train 1
commencing production in the second half of 2017 and LNG
train 2 in June 2018, year-end 2017 Pluto reserves revisions and
higher production across our facilities.
Provision release
A one o $120 million provision related to the Balnaves FPSO
lease was released in 2017.
Exploration and evaluation
Exploration and evaluation expense increased following
significant activity in 2018 and accompanying well results.
Exploration expenditure in 2019 will reduce.
Net finance costs
Net finance costs increased due to lower capitalised borrowing
costs following the start-up of both Wheatstone LNG trains.
Income tax and PRRT
The PRRT credit decreased by $84 million predominately due
to higher assessable receipts. Income tax expense increased
by $79 million predominantly due to higher profit before
income tax.
Other items impacting NPAT included higher production costs
due to a full year of Wheatstone LNG production, inventory
movement, higher shipping and direct sales costs, and
reclassification of two LNG vessels as assets held for sale. This
was partially oset by higher processing and services revenue
and other income.
Robust operational performance throughout 2018 and improved market conditions have generated solid
cashflows and contributed to increased profit. This has supported our strong financial liquidity throughout
2018 which positions us well for our growth projects.
NPAT reconciliation
$ million
2018 NPAT
Sales revenue: price
Sales revenue: volume
Royalties and excise
Exploration and Evaluation
Depreciation and amortisation
Net finance costs
Provision release
Income tax and PRRT
2017 NPAT
286 (31) (263)
(80) (99) (163)
(98) 1,364