Woodside Petroleum full year results

Woodside Petroleum reported statutory NPAT of US$26 million for year ended 31 December 2015, down 99% on the pcp, with adjusted NPAT (removing one-off non-cash items of US$1.085 billion) of US$1.126 billion down 57% on the pcp. The short term incentive company scorecard outcome of 1.35 of out 2, reflects a relative TSR ranking in the 2nd quartile (against a bespoke group of 17 oil and gas sector peers and against the ASX 50 - taken as a composite); second highest production level (although production of 92.2 mmboe was down 3% on the pcp), improved safety performance on TRIFR, and met or exceeded majority of 2015 business plan commitments. This translated into a cash STI for the MD/CEO of US$2,007,413 (2/3 of total STI, and 85% of his maximum award, so reflects Board's assessment of his individual performance). The key to understanding this award is the scorecard category of delivery against business commitments: production, asset utilisation, opex, flaring, cost reduction and efficiency improvement programs. Lower revenues and lower profit don't factor into the reward equation.