Woodside beats Q2 revenue estimates, exits hydrogen project as costs bite
The revenue beat underscores the strong performance of the Sangomar project, which has contributed $510 million in revenue for the quarter. The company's overall production jumped 13% to 50.1 million barrels of oil equivalent (boe) during the quarter, up from 44.4 million boe in the same period last year.
The country's top gas producer posted revenue of $3.28 billion for the three months ended June 30, surging 8% from $3.04 billion a year earlier and exceeding the Visible Alpha consensus estimate of $3.09 billion.
Woodside also reduced annual unit production costs to $8-$8.50 per boe from $8.50-$9 per boe.
Shares rose as much as 2.4% to a one-month high of A$25.44 by 0057 GMT, outpacing gains of over 1% in the broader energy sub-index (.AXEJ), opens new tab.
However, the company said it was abandoning its H2OK hydrogen project in Oklahoma, citing cost escalation and weaker-than-expected demand in the low-carbon hydrogen sector. The exit will result in an impairment loss of about $140 million on a pre-tax basis.
"We have made the decision to exit the H2OK Project, demonstrating our disciplined approach to portfolio management," the company said.
Woodside also faces mounting decommissioning costs for its aging Minerva, Stybarrow and Griffin offshore facilities, with technical challenges at closed sites driving up expenses. The company expects to book $400-$500 million in pre-tax charges related to the decommissioning work.
On the positive side, Woodside completed the sale of a 40% stake in its Louisiana LNG project to Stonepeak for $5.7 billion in June, with the buyer agreeing to fund 75% of the project's capital expenditures in 2025 and 2026. The company said it continues to attract interest from potential partners for further stakes.
Woodside in late March agreed to sell offshore oil and gas assets in Trinidad and Tobago to London-based Perenco, which included production facilities and interests in shallow water fields.
As a result of the asset sale, Woodside marginally adjusted its 2025 production forecast to between 188 million and 195 million boe, compared with its previous guidance range of 186 million to 196 million boe.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
7 hours ago
- Reuters
Exclusive: Shell-led LNG Canada faces problems as it ramps up production, sources say
LONDON/HOUSTON/CALGARY, July 29 (Reuters) - Shell-led (SHEL.L), opens new tab LNG Canada is experiencing technical problems as it ramps up production at its liquefied natural gas plant at Kitimat, with one LNG tanker diverting away from the facility without the superchilled fuel in recent days, according to four sources and LSEG ship tracking data. The plant is the first major LNG export facility in Canada and the first on the west coast of North America, providing direct access to Asia, the world's largest LNG market. The facility is expected to convert about 2 billion cubic feet of gas per day (bcfd) to LNG when fully operational, which market participants have hoped will boost Canadian natural gas prices. Western Canadian natural gas prices remain depressed, however, due to a persistent supply glut that has not yet been drawn down by fresh demand from LNG Canada's July 1 startup. The daily spot price at the Alberta Energy Company (AECO) storage hub closed at $0.22 per mmBtu on Tuesday, compared to the U.S. Henry Hub benchmark price of $3.12, according to LSEG data. LNG Canada, which took almost seven years to be built, has been operating at less than half the capacity of its first plant, also called a train, two of the four sources said. The facility's Train 1 has experienced technical issues with a gas turbine and with a Refrigerant Production Unit (RPU), according to two other industry sources. The sources all spoke on condition of anonymity because the information was not public. In response, a LNG Canada spokesperson said a new-build facility at the joint venture's size and scale may face operational setbacks as it ramps up production and stabilizes. There has been at least one diversion by Shell of an empty LNG vessel to Peru, while other tankers remain close to the facility, LSEG ship tracking data showed. Ferrol Knutsen, a 170,520 cubic meters LNG tanker, was signaling that it was headed to the Kitimat port but then changed directions and is now off the coast of California on its way to Peru, according to LSEG ship tracking data. LNG Canada is a joint venture between Shell, Malaysia's Petronas ( opens new tab, PetroChina ( opens new tab, Japan's Mitsubishi Corp (8058.T), opens new tab and South Korea's KOGAS ( opens new tab. When fully operational, LNG Canada will have a capacity to export 14 million metric tonnes per annum (mtpa), according to company statements. So far the facility has exported four cargoes, including its first shipment on July 1. Another shipment is expected in the coming days, the LNG Canada spokesperson said. The pace of exports from the plant will increase as it moves through early operations and into a steady shipping cadence, the spokesperson said. "In regular operations in Phase 1, we anticipate loading one export cargo from our facility every two days," the spokesperson added.
Daily Mail
11 hours ago
- Daily Mail
Trump flags tariff hike that may impact Australia
Australian exporters may be hit with tariffs of up to 20 percent at the US border, after President Donald Trump flagged a hike in the baseline duty for all imports. Trump suggested the minimum tariff for countries that do not negotiate separate trade deals may double. Speaking at a press conference at his luxury golf resort in Turnberry, Scotland on Monday (Tuesday, AEST), the US president said the blanket tariff would affect 'the rest of the world', having secured exemption deals with major economies including Japan and the European Union. Asked what the new rate would be, he said: 'I would say it'll be somewhere in the 15 to 20 percent range. 'Probably one of those two numbers'. The baseline tariff is currently set at 10 percent and is applied to most goods sent to the US by about 200 countries including Australia. Despite mounting pressures on Prime Minister Anthony Albanese, his government has been unable to secure an exemption ahead of an August 1 deadline. Shadow Finance Minister James Paterson said the latest announcement exposed the damage caused by Albanese's failure to establish a relationship with Trump, having still not met him face-to-face. The Prime Minister sought to discuss the tariffs with Trump during the G7 summit in Canada last month but the US President left ahead of schedule due to the Israel-Iran conflict. Mr Paterson added it seemed Ambassador to the US Kevin Rudd also had no meetings at the White House since Trump was sworn in in January, having previously mocked and criticized the US president. 'I suspect we would know about it if he had, I suspect it would be all over social media if he had, so I think it's a reasonable inference now that there has been no meetings.' For its part, the Albanese government has restated its opposition to the tariffs but downplayed what it said about Australia-US relations. 'We are a country that relies on trade, we are a country with a very high proportion of jobs that rely on trade,' Assistant Treasurer Dan Mulino told Sky News. 'That remains the position of this government. So, we would rather a situation in which the world doesn't go down the path of imposing tariffs. 'But what I can say is that Australia remains in a situation where we've got as good a deal as anybody, and we continue to engage with the US Government intensely on these matters.' A spokesperson for Trade Minister Don Farrell said Australia would continue to engage 'at all levels' to advocate for the removal of the tariffs. 'We, as the opposition, disagree with Trump's tariff policy, but again, it reinforces the urgency and the great disappointment that our prime minister hasn't had a face-to-face meeting with Trump,' he said. 'He needs to go over there and prosecute the case, to argue Australia's case, but also to stand up for free trade across the globe, because the importance of it for us as a trading nation, as Australia.' It comes only days after Australia lifted its ban on importing US beef - eliminating a key reason cited by the Trump administration for its tariff on Aussie goods. Mr Albanese insisted the move was the outcome of a biosecurity review that had been underway for years rather than a backdown in the face of tariffs, but US officials have celebrated it as a win for the president. 'This is yet another example of the kind of market access the president negotiates to bring America into a new golden age of prosperity, with American agriculture leading the way,' US Secretary of Agriculture Brooke Rollins said.
South Wales Guardian
12 hours ago
- South Wales Guardian
Navy flagship HMS Prince of Wales leaves Australia during eight-month deployment
The fleet flagship has now set off for Japan in the next stop of its eight-month Indo-Pacific deployment. The £3 billion warship sailed from Portsmouth in April for the mission which involves visits with 40 countries across the Mediterranean, Middle East, south-east Asia, Japan and Australia. As the sun sets on HMS Prince of Wales, we bid farewell to @COMUKCSG after an incredible visit. The Carrier Strike Group's first return since 1997 has strengthened our partnership and deepened UK-Australia ties. Until we meet again 🇬🇧🇦🇺#UKAustralia #CSG25 @SarahMacFCDO — UK in Australia 🇬🇧🇦🇺 (@ukinaustralia) July 29, 2025 A Royal Navy spokesman said that the carrier had sailed from Darwin having taken part in the Talisman Sabre exercise as well as acting as a host for diplomatic visits, including from representatives of the indigenous Larrakia people. He said: 'The flagship hosted a string of senior British and Australian politicians, including Defence Secretary John Healey and Foreign Secretary David Lammy, his Australian counterpart Penny Wong and Deputy Prime Minister Richard Marles. 'The aircraft carrier has also served as the impressive setting for a business and industry event, discussing the growing importance of defence links between London and Canberra. 'And the 2,500-plus personnel in the task group have enjoyed down time to explore the largest city in Australia's Northern Territory.' Able Seaman Owen Altoft, an 18-year-old chef from Newcastle who is on his first deployment, said: 'It's an experience being out in Australia. 📸.@HMSPWLS in Darwin, Australia 🇦🇺#CSG25 | @COMUKCSG — Royal Navy (@RoyalNavy) July 28, 2025 'This deployment has been great – seeing what the world's like, seeing different places, cultures and food. It's what I signed up for. 'I tried kangaroo at the local food market and would try it again in a restaurant.' The Royal Navy spokesman said that the next stage of the deployment would involve combined air exercises with the carrier's F-35 jets and the Japanese navy. The Hon Pat Conroy MP visited @HMSPWLS while in Darwin. A great opportunity to demonstrate our joint capabilities, discuss partnerships and working together in the Indo-Pacific 🇦🇺🤝🇬🇧 #CSG25 #AUKUS — UK Carrier Strike Group (@COMUKCSG) July 29, 2025 He said: 'Both nations operate the same short take-off/vertical landing version of the stealth jet, the B variant, although Japan has not flown the fifth-generation strike fighter for quite as long as the UK.' Earlier in the deployment one of the stealth fighter jets was stranded at an airport in Kerala, India, after suffering mechanical issues. After the week-long exercise with Japan, the carrier will continue with its visit to the country while some vessels from the UK task group will head to South Korea.
