HDR hardman resources limited

hardman-woodside

  1. 2,099 Posts.
    Woodsides ASX announcements yesterday has almost answered my question whether it is going to purchase or lease a Floating Production Storage Offloading (FPSO) for the Mauritanian project,with the WPL cut backs they might just be leasing,not much money to go out buying a $250 million FPSO.
    • Also the chances of a takeover of Hardman by Woodside must now be very remote, again IMHO due to cut backs

    • Lets hope that when the JV Mauritanian announcements come out that there's no nasty surprises as a result of WPL's cut backs

    • Below is an article from THE WEST AUSTRALIAN
      newspaper


      Woodside efficiency drive to save $200m
      By Paul Armstrong
      Business Editor

      WOODSIDE Petroleum confirmed yesterday that it would save nearly $200 million over the next four years as the result of an efficiency drive that would see it cut about 300 jobs.

      The predicted savings, which were in line with previous indications given to the market by the oil giant, saw Woodside shares gain 11¢ to $11.45 as analysts made minor upgrades to earnings forecasts.

      Woodside said it would slash operating expenses by $250 million over the next three years, incurring one-off costs of about $35 million in the process.

      About $60 million would flow directly to Woodside with the rest going to joint venture partners in its various projects.

      Woodside said it would also slash its capital and exploration costs by $300 million over three to four years, between $120 million and $135 million of which would go to Woodside.

      Analysts said the cost-cutting drive would help offset Woodside's profit dip while it waited for the North West Shelf expansion to reach full production in 2006.

      "I think their profit in 2005 will be better than many people think," said DJ Carmichael analyst Hayden Bairstow.

      Woodside, which sacked chief executive John Akehurst last month, is under immense pressure to plug some of this so-called earnings gap between now and 2006.

      Some believe Mr Akehurst paid the ultimate price for failing to secure a major overseas acquisition, leaving the company vulnerable to a third takeover bid by Shell.

      A Woodside spokesman said the cutbacks would not affect the company's plans to spend $5 billion on new projects over the next five to seven years and the exploration program would not be curtailed.

      Instead, Woodside will make substantial savings by eliminating duplication in areas such as contracting, human resources and financial administration.

      About 50 jobs would be lost in the finance department and another 80 in the production area as part of the plan for a flatter management structure.

      "This won't affect the project slate we have or the exploration program," he said. "But we are looking at accelerating some major projects in a bid to save money."

      Woodside has admitted it had grown "fat and uncompetitive" in recent years. "As the North West Shelf matures and we start to do other things our profile has changed," the spokesman said yesterday. "But we have not changed the number of people we have got."

      Woodside hopes to find a replacement for Mr Akehurst within six months. This means it will still be implementing the cutbacks when its new managing director comes on board, a factor which has fuelled speculation within Woodside that more job losses, particularly in management, could be on the cards then.







 
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