Woodside Petroleum Company Analysis

This assignment delves into a comprehensive analysis of Woodside Petroleum Company. It includes a SWOT analysis examining the company's strengths, weaknesses, opportunities, and threats. Financial ratio analysis is performed to assess key performance indicators like liquidity, profitability, and asset utilization. Additionally, the organizational structure of Woodside Petroleum Company is presented, outlining key positions and leadership.

Running head: A CASE OF WOODSIDE PETROLEUM COMPANY
Identifying and Assessing the Risks of Material Misstatement through Understanding
the Entity and Its Environment
A case of Woodside Petroleum Company
Name
Institution

A CASE OF WOODSIDE PETROLEUM COMPANY 2
Executive Summary
Risk management is an integral part of an entities business plan. Most companies rely
on financial analysis of their financial statements to monitor their performance. The study
examines the business risks affecting the performance of Woodside Petroleum Company and
the strategy put in place to mitigate them. Founded in 1954, the company specializes in
exploration, development, production, marketing, sale and supply of oil and gas products in
the Australian oil and gas industry. To understand the business risks challenging the
operations on Woodside, the study conducted SWOT analysis, PESTEL analysis, financial
ratio analysis and the risks associated with business performance as listed in the company’s
2016 annual report. The report shows that the company is outperforming its competitors
simply because the latter are performing poorer because of the fall of oil and gas prices.

A CASE OF WOODSIDE PETROLEUM COMPANY 3
Table of Contents
Executive Summary.................................................................................................................2
Introduction..............................................................................................................................4
Part 1 – Understanding Woodside Petroleum Company.....................................................4
Part 2 – Australian Oil & Gas Industry.................................................................................5
Part 3 – The legal environment of the Industry....................................................................6
Part 4 – Woodside’s external environmental factors............................................................8
a) SWOT Analysis..............................................................................................................8
Strengths.............................................................................................................................8
Weaknesses........................................................................................................................8
Opportunities......................................................................................................................9
Threats................................................................................................................................9
b) PESTEL Analysis....................................................................................................10
1. Political Factors.....................................................................................................10
2. Economic Factors..................................................................................................10
3. Social factors..........................................................................................................10
4. Technological factors.............................................................................................11
5. Environment Factors..............................................................................................11
6. Legal Factors..........................................................................................................11
c) Porter’s Five Forces Analysis.....................................................................................11
d) Other External Factors Affecting Woodside........................................................12
Part 5 – Understand objectives, strategies and Assessing Business Risks........................13
Part 6 – Performing Analytical Procedures to understand Entity’s Performance..........14
Part 7 – Woodside’s management and Governance...........................................................15
References................................................................................................................................17
APPENDICES........................................................................................................................19
Table 2: SWOT Analysis...................................................................................................19
Table 3: Financial Ratio Analysis.....................................................................................19
Table 3: Organizational Structure...................................................................................20

A CASE OF WOODSIDE PETROLEUM COMPANY 4
Introduction
Business risk management encompasses the identification, assessment, and
development of strategies used in managing the risks. Risk management is an integral part of
an entities business plan. It helps with the preparations for and dealing with the risk factors
associated with organization’s operations and economic downturn (Crouhy, Galai, & Mark,
2014). During economic downturns, business risk management involves a close monitor of
the business performance, identify the issues affecting performance, and developing
strategies to address or reduce their impact. Most companies rely on financial analysis of
their financial statements to monitor their performance. For example, if the analysis shows a
drop in the sales during a given period, then the management should analyze the factors that
would have likely affected sales performance (CMC, CPCM, & Conrow, 2003). The
company should then formulate strategies of managing or addressing such risks. This study
examines the business risks affecting the performance of Woodside Petroleum Company and
the strategy put in place to mitigate them.
Part 1 – Understanding Woodside Petroleum Company
Woodside Petroleum Company is an Australian largest company operating in the oil
and gas industry. Founded in 1954, the company specializes in exploration, development,
production, marketing, sale and supply of oil and gas products. In other words, Woodside
focuses on an end to end value to meet the consumer needs (Woodside, 2016). Woodside’s
products comprise of liquefied natural gas, liquefied petroleum gas, condensate, crude oil,
and pipeline natural gas. The Company possesses five floating oil production, storage and
offloading facilities located in Australia. With approximately 3,500 employees, the company
operates in Australia, Asia, the United States, and Canada.

A CASE OF WOODSIDE PETROLEUM COMPANY 5
Woodside uses the Australian Accounting Standards (AAS) in preparing its financial
reports. According to its financial statement as of 30th June 207, listed on the ASX, the
company recorded a net income before tax of $ 507 million which was 49% higher compared
to the amount recorded in the first half of 2016 (Woodside, 2016). However, the company is
outperforming its competitors simply because the latter are performing poorer. The global Oil
& Gas industry has been exposed to the fall of oil and gas prices.
Part 2 – Australian Oil & Gas Industry
The Australian Oil and Gas industry is the largest contributor to economic growth and
development according to the trade and market overview data. Geographically, the leading
oil-producing regions are; Western Australia with 64% of the total national output,
Queensland (11%), South Australia (7%), New South Wales (6%), Tasmania (5%), and the
Northern Territory (1%). With regards to the composition of the produces, Natural gas
(LNG) represent 65% (national production), Crude oil (22%), coal seam gas (8.3%), and
shale oil and gas (0.2%). Australia boost of approximately 18,000 oil and gas wells. The
Australian oil and gas reserves are managed by the respective state government with different
policies which support their development agenda (Woodside Petroleum Company, 2017).
Approximately USD 150 million has been invested in the Australian oil and gas
industry between 2012 and 2017. With such a massive investment, the industry is likely to
contribute over USD 46million to the Australian GDP by 2020. Moreover, Australia is
expected to overtake Qatar as the largest exporter of Oil and gas by 2020. The three major
domestic oil and gas companies are Woodside, BHP, and Santos. Other global multinational
oil companies operating, exploring and partnering with Australian companies are BP,
Conoco-Philips, Chevron, Total, Shell, INPEX, and ExxonMobil. Table 1 shows the market

A CASE OF WOODSIDE PETROLEUM COMPANY 6
share of six leading Australian oil and gas products with respective changes between the
financial years 2015/16 and 2016/17 (Woodside, 2016).
Company Market Share (%)
2015/16
Market Share (%)
2016/17
Woodside Petroleum 16.6 13.5
BHP Billiton 13.9 13.2
Chevron Australia 9.3 12.4
ExxonMobil Australia 9.3 12.1
Santos 9.9 11.8
Shell Energy 9.3 10.3
Table 1: Market Share of six major players
Among the success factors which have contributed to the success of the company are;
Enhanced maintenance and operations facilities specializing in facility inspection, and
support services. Other opportunities include flexible pipe technology, advanced vessel
maintenance, and water management facilities. However, falling prices of oil and gas present
a major threat to the industry.
Part 3 – The legal environment of the Industry
Each of the six Australian states has its own legal regulations governing onshore
petroleum exploration and production within their territory. The state regulations govern the
coastal waters as well. Although the legislative used by the six states are almost similar, they
are not identical. Besides the state-based legislatures, there exist general rules that govern the
exploration and production of petroleum at the territory and Commonwealth level. Such

A CASE OF WOODSIDE PETROLEUM COMPANY 7
legislatures include heritage, environment protection, water rights, and land tenure
(Export.Gov, 2016).
The Australian Standing Council on Energy and Resources came up with a
harmonized regulations of petroleum and coal production that applies to the relationship
between different states. The framework is used as the primary practice principle in
Australia. The framework addresses four key areas of; natural gas development life cycle,
water management and monitoring, hydraulic fracturing and chemical use, and well integrity.
Each state has its own policy on gas reservation policy. For instance, in Western
Australian State LNG project require that 15% of gas production should be reserved for
domestic supply. In Queensland State, although the policy on the domestic reservation has
been introduced it is yet to be adopted for the application (Export.Gov, 2016).
Minimum work and expenditure conditions; each state has its own policy governing
this issue as well. For example in the Queensland state, when applying for operating permit, a
company should submit its work program with a detailed coverage of the proposed minimum
expenditure and work commitment (Export.Gov, 2016).
The last state has its own policy that governs water usage and management as
environmental protection. However, the regulation should be in line with the territory and
commonwealth policies to avoid conflict of interest that may arise.
Companies operating in the Australian oil and gas industry prepare and report their
financial statement and reports based on the International Financial Reporting Standards
(IFRS) and the Australian Accounting Standards (AAS) (Export.Gov, 2016).

A CASE OF WOODSIDE PETROLEUM COMPANY 8
Part 4 – Woodside’s external environmental factors
This section analyzes the Woodside’s SWOT and PESTEL analysis
a) SWOT Analysis
Strengths
1. Stable credit rating and performance. The company enjoys a stable cash flow and
balance sheet from its operations which has ensure its operational sustainability when
oil price dropped (Bosworth, Barry, Collins, & Virma, 2016).
2. Dual Growth strategy. The company is focusing on creating its exploration portfolio.
Is has acquired interests in Australia, Asia, Atlantic and sub-Saharan margins. The
acquisitions ensured that the company’s reserves increased by 27% in 2016.
3. Investing in Safety. Environment and Healthy have reduced the rate of injuries
occurring at its sites.
4. Effective risk management Programme. The risk framework in line with ISO 31000
which covers wide range mitigation programmes of risks in the oil and gas industry.
5. Investing in Corporate social responsibility. The initiatives focus on improving the
environment and wellbeing of the communities (Smith, King, & Utz, 2016).
Weaknesses
1. Concentrated Australian market. 99% of the company’s productions originate in
Australia making it a subject of legal and political conditions/ pressure.
2. Lack business diversification. The company focuses on a vertical value chain i.e.
exploration, development, production, and supply. Hence, Woodside is susceptible to
fall of demand and price of oil, petroleum and gas prices.

A CASE OF WOODSIDE PETROLEUM COMPANY 9
Opportunities
1. Expansion of new markets. There are new markets emerging in India, South-East
Asia, China, Poland, Jordan, and Egypt. This would create a new market for
Woodside.
2. The increase in demand for gas globally. By 2030, the demand for natural gas is likely
to grow between 5 to 7% (Smith, King, & Utz, 2016).
Threats
1. Volatile Prices of Oil. Woodside’s sales decreased in 2015 because of fall in the oil
prices. The price dropped further to $26/ barrel in 2016 although it improved between
$40-45/ barrel in late 2016.
2. Rejuvenation of Nuclear Reactors in Asia. Restart of nuclear reactors in Japan and
South Korea poses a threat to the company’s exports.
3. Delayed completion of its projects. Cost overrun caused by investment slump and
commodity price causing legal conflicts between contractors and producers.
4. Exploration Risk. Although the company has an effective risk management
framework, its unsuccessful implementation would pose risks to the company (Kreps,
2012).
5. Regulatory Risks. The industry is subject to laws and regulations. Woodside can be
adversely affected by unfair regulations.
6. Slowing Economies in Asia. With the Chinese slow economic growth, Woodside’s
exports may be severely affected (Smith, King, & Utz, 2016).

A CASE OF WOODSIDE PETROLEUM COMPANY
10
b) PESTEL Analysis
1. Political Factors
Geopolitical conflicts and political instability highly influence Woodside’s
performance in the global market. The presence of a significant percentage of oil and gas
reserves in Asia led to increased corruption and political instability. These political factors
are described as “resource curse” and adversely influence the oil and gas prices (Miles,
2003).
2. Economic Factors
The global economic growth directly influences the demand for oil and gas. Likewise,
the prices of oil in the global market is dependent on the demand and supply of other
commodities (Kew & Stredwick , 2008). Factors such as Global economic crisis, bankruptcy,
over debt in the public and private sectors, and financial crisis in the world adversely affect
the prices of oil and gas because they determine whether or not the reserves are economically
feasible (Pitatzis, 2016).
3. Social factors
Factors such as culture, migration, ideological views, religion, income and
demography significantly affect the oil and gas industry. For instance, many people are now
turning their attention to environment-friendly fuels and reducing the use of fossil fuels like
shale gas, coal, and oil sand (Porter, 1998). Due to the increasing global population, the
consumption of oil and gas is expected to increase as well. Increase social activism on oil and
gas is likely to affect the security/ profits generated by companies. Lastly, the company is
likely to turn to natural gas which is considered to be a clean fuel (Smith, King, & Utz, 2016).

A CASE OF WOODSIDE PETROLEUM COMPANY
11
4. Technological factors
By investing in new technology, Woodside and other oil and gas companies are likely
to face barriers such as shortages of skills, uncertain returns, increase in development cost,
insufficient funds, stringent regulations, and uncertain prices of oil and gas. In other words,
technology has a significant impact on the future operations in the oil and gas industry
(Brownlie, 2015).
5. Environment Factors
With the increasing global activism on the need to reduce Carbon Monoxide
emission, increasing the use of renewable energy sources and decreasing the use of fossil
fuels will shape the demand, supply, and price of oil and gas (Argote & Ingram, 2000).
6. Legal Factors
Governments reserve the right to change regulation and taxes imposed on the oil and
gas industry. If taxes are increased or unfavorable regulations are imposed, oil and gas
companies would be affected by decreased profits, expensive projects, and infeasible
economic plans in the future (Barney, 1991).
c) Porter’s Five Forces Analysis
1. Threats of New Entrants: The industry attracts new entrants who come with new
innovation and competitive pressure on the existing players. Woodside is forced to
reduce its costs, lower its prices and create new value propositions to remain
competitive.

A CASE OF WOODSIDE PETROLEUM COMPANY
12
2. Suppliers’ bargaining power: In the oil and gas industry, suppliers have high
bargaining power which they use to obtain higher prices from the companies. Higher
powers by suppliers lower the profitability of Woodside.
3. Buyers bargaining power: Woodside has a powerful customer base with the ability to
demand for increased offers and discounts. The cost of shifting to another company is
also insignificant.
4. Threats of Substitute Products or Service: The threat of substitute products is high in
the industry. With more value than the ones provided in the industry, Woodside can
easily loose control of its customer base.
5. Rivalry among the Existing Competitors: Woodside operates in a competitive oil and
gas industry. To win customers, the players offer low pricing strategies which affect
their overall profitability in the long run.
d) Other External Factors Affecting Woodside
 Global economy: With wars, terrorism attacks, political instability, currency
devaluation, the global economy keeps fluctuating. During the 2008 economic crisis,
the oil and gas industry recorded low profitability.
 Interest rates: Respective governments reserve the power to impose interest and taxes
on energy companies operating within their territory. The higher the interest rates, the
lower the profitability.
 Availability of financing: Solvency of financial institutions and banks have an impact
of the continued operation of Woodside. The company cannot control factors such as
availability of loans, and interest rates charged as well.

A CASE OF WOODSIDE PETROLEUM COMPANY
13
 Inflation: Inflation have a direct impact on the price of oil and gas products.
Depreciation of the global currency lead to increased inflation which in return lower
the price of one barrel, Reduced prices leads to lower profitability.
Part 5 – Understand objectives, strategies and Assessing Business Risks
This section discusses the business risks that faced the Woodside Company, as
indicated in the 2016 annual report, and the mitigation strategies that were applied to control
them.
The identified risks were;
a) Unsuccessful renewal and exploration of upstream resources which slowed the
realization of the business strategy. To address the risk, the company developed a
comprehensive exploration strategy which comprised of capability in deep water and
geosciences exploration, recovery process and investment in new technologies
(Coleman, 2011).
b) Unsuccessful commercialization of the hydrocarbon plan by failing to execute cost
effective and quality driven projects negatively affected the company’s financial
performance (Gary, Thomas, & Harry, 2011). To solve the issue Woodside focuses on
creating a diverse commerce arrangement with the stakeholder as well as investing in
high quality and robust projects.
c) Unplanned production interruptions which affected production and financial
performance. Woodside’s facilities were subject to inclement weather, hazards and
supply chain disruptions leading to additional cost, diminished production, harm to
the employee, and environmental damages. The mitigation plan comprises of
inspecting the effectiveness of the company’s risk management plan and maintenance

A CASE OF WOODSIDE PETROLEUM COMPANY
14
procedures as well as implementing a continuous performance management plan in
collaboration with the regulators (Eckerson, 2009).
d) Cybersecurity attacks arising from intentional or unintentional disruptions which
would jeopardize the reliability and integrity of the company’s data. The company has
invested in embedded security program and system control management (Hitt, 2014).
e) Violate oil prices caused by natural disasters, political factors, economic factors, and
change of consumers’ preferences. The risk is mitigated by cost-effective production
and selling its products in a portfolio manner (Magretta, 2011).
f) Fluctuating rates of currency exchange. To reduce the exposure to exchange rate, the
company use the stable US dollar in its transactions.
g) Unsuccessful delivery and development of new products and technologies which
adversely affected Woodside’s competitive advantage. To mitigate the risk, the
company is reducing the cost associated with developing and developing new
products and technology (Ra & Gerhart , 2010).
h) Increasing political risks arising from different countries where the company operates.
The government policies related to the exploration, transportation, production,
development, marketing, storage and pricing of the products. Failure to comply with
such policies lead may lead to the withdrawal of operating licenses. The company has
continually improved its compliance supporting tools and compliance. Woodside also
strives to maintain a positive relationship with respective governments (Rejda &
McNamara, 2013).
Part 6 – Performing Analytical Procedures to understand Entity’s Performance
This section addresses Woodside’s financial risk ratio analysis for a period between
2014 and 2016. The ratios are further compared to the average performance of the industry.

A CASE OF WOODSIDE PETROLEUM COMPANY
15
Financial Ratio Analysis (Table 2)
Current ratio refers the ability of a company to meet its short-term financial
obligations. It is calculated by dividing the current assets by the current liabilities. A
company can meet its obligations if the ratio is greater than one. Woodside was in a position
to meet its short-term financial obligation. Its current ratio increased between 2014 and 2016.
However, the ratio was below that one of the industries (1.88).
Likewise, the quick ratio shows the ability of a business to meet its financial
obligation using the most liquid current assets i.e. fewer inventories. Woodside’s quick ratio
increased from 0.88 in 2014 to 1.15 in 2016. The company could only meet its financial
obligations using its most liquid current assets in 2016. However, the quick ratio was lower
than the industry’s 1.32 (Tracy, 2012).
Debt to Equity ratio examines the business activities financed using debts. The debt to
equity ratio increased between 2014 and 2016. This shows the companies overdependence on
debts to fund its businesses. Nevertheless, the ratios were lower than the industry’s 0.64.
Return on Equity examines how effective a company is in using its equity to generate rate
revenue. It is calculated by dividing the net profit by equity. In 2014, Woodside recorded the
highest ROE of 18.47% before dropping to 6.65% in 2015 (Tracy, 2012). The ratio improved
to 10.73% in 2016. The industry’s ROE stands at 12.55%.
Lastly, the Asset Turnover examines effective is the company in using its assets to
generate revenue. Woodside had asset turnovers of 0.46, 0.32, and 0.25 in 2014, 2015 and
2015 respectively. The industry’s average asset turnover was 0.37.
Part 7 – Woodside’s management and Governance
a) Management’s philosophy and operating style: Under the leadership of
Chief Executive Officer Peter Coleman and Chairman Michael Chaney, the Woodside

A CASE OF WOODSIDE PETROLEUM COMPANY
16
Corporation has been steady in expanding its acquisition opportunities. The
management is always focused on increasing the shareholder's wealth and the
company’s competitive advantage in the competitive oil and gas industry. As a result
Woodside adopted cost-effective strategies by abandoning overpriced investment
opportunities (Capps & Glissmeyer, 2012).
b) Commitment to competence: With the outstanding leadership of the CEO,
who has been with the company for over six years, the company has attracted top
talented personnel globally. This has been attributed to attractive remuneration
system, high motivation and retention strategies (Spender, 2014).
c) Communication and enforcement of integrity and ethical values: The
management has also maintained consistent communication with the shareholders
who have proved to be supportive during the economic downturn periods (Woodside
Petroleum Company, 2017). The company also has an ongoing program of changing
its board to bring competent personnel who will help the company achieve its
strategic plans.
d) Participation by those charged with governance: As indicated in the
table on Organizational structure, each member of the management
has an independent to play based on their skills, profession, and
expertise. They make independent decision in line with the
company strategic plan and values.
e) Assignment of authority and responsibility: The Company uses a
vertical leadership style. The CEO delegates duties to the Vice
Presidents. Who, then, them down the ladder within their
jurisdictions. Consultative decision making is highly valued.

A CASE OF WOODSIDE PETROLEUM COMPANY
17
f) Human resource policies and practices: The Company has
outsourced the HRM functions of recruitment, selection, orientation,
training, counselling. However, promotion, demotion, dismissing,
compensation, and disciplinary actions are done internally.
g) Organizational structure (See the organizational structure in the
appendices section).
Conclusion
Although faced with numerous challenges such as falling prices of oil and gas,
economic downturn, unstable exchange rates, political instability, and terrorism, Woodside
Petroleum Company has endured all these to remain competitive in the Australian and global
energy market. To remain competitive, Woodside have merged with other organizational to
develop a predictive analytics used in maintaining and controlling in production process and
operations across its exploration and products facilities. Likewise, by integrating technology
in its operations, Woodside is focussed on creating an agile, competitive and intelligent-
oriented organization. However, given the rarely controlled external factors, affecting the
operations, we wait to see what the future holds for Woodside Company.

A CASE OF WOODSIDE PETROLEUM COMPANY
18
References
Argote, L., & Ingram, P. (2000). Knowledge transfer: A basis for competitive advantage in
firms. Organizational Behavior and Human Decision Processes, 82, 150-169.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of
Management, 17, 99-120.
Bosworth, Barry, Collins, S. M., & Virma, A. (2016). Concept And Evolution Of Business
Models. Journals.sagepub.com. N.p.
Brownlie, D. (2015). Management theory and practice: bridging the gap through
multidisciplinary lenses. European Business Review, Vol. 20 (Iss: 6), pp.461 - 470.
Capps, C. J., & Glissmeyer, M. D. (2012). Extending The Competitive Profile Matrix Using
Internal Factor Evaluation And External Factor Evaluation Matrix Concepts. The
Journal of Applied Business Research.
CMC, CPCM, & Conrow, P. E. (2003). Effective Risk Management. New Jersey: AIAA; 2nd
edition.
Coleman, T. S. (2011). A Practical Guide to Risk Management. New York: Research
Foundation of CFA Institute.
Crouhy, M., Galai, D., & Mark, R. (2014). The Essentials of Risk Management. New York:
McGraw-Hill Education.

A CASE OF WOODSIDE PETROLEUM COMPANY
19
Eckerson, W. (2009). Performance Management Strategies. Business Intelligence Journal,
14(1), 24-27.
Export.Gov. (2016). Australia - Oil and Gas. Sydney: Export.Gov. Retrieved from
https://www.export.gov/article?id=Australia-Oil-and-Gas
Gary, B., Thomas, J., & Harry, J. (2011). Business System Analysis and Design.
Hitt, M. (2014). Strategic Management: Concepts and Cases: Competitiveness and
Globalization. Mason, Ohio: Thomson South-Western.
Kew, J., & Stredwick , J. (2008). Business Environment: Managing in a Strategic Context (2
ed.). New York: CIPD - Kogan Page.
Kreps, D. M. (2012). Microeconomic Foundations I: Choice and Competitive Markets (2
ed.). New Jersey: Princeton University Press.
Magretta, J. (2011). Understanding Michael Porter: The Essential Guide to Competition and
Strategy (1 ed.). Chicago: Harvard Business Review Press.
Miles, R. E. (2003). Organizational Strategy, Structure, and Process. Starnford: Stanford
Business Books.
Pitatzis, A. (2016). Global Oil and Gas Companies Operations. Retrieved from
https://energyroutes.eu/2016/05/08/pest-analysis-for-global-oil-and-gas-companies-
operations/
Porter, M. E. (1998). Competitive Strategy: Techniques for Analyzing Industries and
Competitors (1 ed.). New York: Free Press.
Ra, & Gerhart . (2010). Human resources management: Gaining a competitive advantage.
Journal of Econmics, 5(5), 332.
Rejda, G. E., & McNamara, M. (2013). Principles of Risk Management and Insurance. Paris:
Pearson Series.
Siedel, G. (2016). The Three Pillar Model for Business Decisions: Strategy, Law and Ethics.
Van Rye Publishing, LLC.
Smith, A., King, J., & Utz, C. (2016). Oil and gas regulation in Australia: overview. London,
UK: Thomson Reuters.
Spender, J.-C. (2014). Business Strategy: Managing Uncertainty, Opportunity, and
Enterprise. Chicago: Oxford University Press.
Tracy, A. (2012). Ratio Analysis Fundamentals: How 17 Financial Ratios Can Allow You to
Analyse Any Business on the Planet. New York: Bidi Capital Pty Ltd.
Woodside. (2016). Experience the Energy: An overview of Woodside’s global business.
Sydney: Woodside Petroleum Company .

A CASE OF WOODSIDE PETROLEUM COMPANY
20
Woodside Petroleum Company. (2017). Woodside Annual Report 2016-2017. Sydney:
Woodside Petroleum Company.
APPENDICES
Table 2: SWOT Analysis
Strength
1. Stable credit rating and performance
2. Dual Growth strategy
3. Investing in Safety
4. Effective risk management
Programme
5. Investing in Corporate social
responsibility
Weaknesses
1. Concentrated Australian market
2. Lack business diversification
Opportunities
1. Expansion of new markets
2. Increase of demand for gas globally
Threats
1. Volatile Prices of Oil
2. Rejuvenation of Nuclear Reactors in
Asia
3. Delayed completion of its projects
4. Exploration Risk
5. Regulatory Risks
6. Slowing Economies in Asia
Table 3: Financial Ratio Analysis
Ratios 2014 2015 2016 Industry (Average)

A CASE OF WOODSIDE PETROLEUM COMPANY
21
Current Ratio 1.23 1.27 1.44 1.88
Quick Ratio 0.88 0.92 1.15 1.32
Debt/Equity 0.38 0.43 0.59 0.64
Return on
Equity( ROE)% 18.47 6.65 10.73 12.55
Asset Turnover 0.46 0.32 0.25 0.37
Table 3: Organizational Structure
Position Name
CEO & MD Peter Coleman
Vice President Global Exploration Phil Loader
Vice President Development Dr Robert Edwardes
Vice President Operations Officer Michael Utsler
Vice President Marketing, Trading, and Shipping Reinhardt Matisons
Vice President Chief Financial Officer Lawrie Tremaine
Vice President Chief Technology Officer Shaun Gregory
Vice President Corporate, Legal and General Counsel Michael Abbott
Vice President People and Global capability David McLoughlin