Woodside set to take £204m hit on profits

Oil and gas producer Woodside Petroleum today warned that about A$430 million (£204.1 million) will be wiped off this year's profit as it puts its ambitious Californian project on hold and takes foreign exchange losses.

The Aussie producer, 34%-owned by Royal Dutch Shell, says net profit was probably between A$1.75 billion and A$1.8 billion in the year to December. If so, it would miss analysts' forecasts by up to 24%.

Woodside has shelved a plan to import liquefied natural gas into California because of weaker market conditions, and said today it will take a charge to write down the venture.

Foreign exchange losses will cut second-half profit by about A$260 million, it said. Fourth-quarter sales rose 40%, in line with expectations.

Woodside has set aside about A$120 million to cover removal of an exemption on excise tax on the North West Shelf venture's condensates output. But profits will still be between 70% and 75% higher than in 2007, it said.