AWE posts dip in revenue

Falling: AWE's revenue took a hit as output fell due to a planned reduction at the Tui and BassGass projects

Australia-listed AWE saw revenue slip during the three months to 31 December as it reduced output during the quarter.

AWE generated A$72 million (US$76.5 million) in sales revenue during the fourth quarter of 2011, a 16% drop on the A$86 million booked during the previous quarter of the year.

The company attributed the decline to a planned reduction in output following works at both the Tui oilfield, off New Zealand, and the BassGass project, off Australia, and the timing of oil liftings from Tui.

As a result production for the quarter totaled nearly 1.4 million barrels of oil equivalent, down from almost 1.6 million boe during the September quarter.

The fall was partially offset by a rise in production at the Cliff Head oilfield in Western Australia where output was up 14% for the quarter at 190,000 boe.

Despite the fall in revenue AWE managing director Bruce Clement said the company was on track to meet its 2012 targets.

“The company’s core business continues to deliver strong production and sales revenue performance with year to date production and sales revenue on budget and on target to meet full year guidance,” he said.

“Exploration drilling in Indonesia, testing of shale gas in Western Australia and further development drilling at Sugarloaf in the USA all offer significant near term potential growth.”

AWE gave a production guidance for the 2012 financial year of between 5 million and 5.5 million boe and a revenue guidance of A$270 million to A$300 million.

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