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Yahoo
15 hours ago
- Business
- Yahoo
Woodside reports strong production growth in H1 2025
Australia-based Woodside Energy has reported strong operational and financial results for the first half of 2025 (H1 2025), delivering 548,000 barrels of oil equivalent per day in production and progressing several major projects. The company's half-year net profit after tax (NPAT) stood at $1.31bn, with an underlying NPAT of $1.24bn, a decrease from $1.63bn in the same period the previous year. Operating revenue experienced 10% year-on-year growth, reaching $6.59bn. The board has announced a fully franked interim dividend of $0.53 per share, corresponding to a payout ratio of 80% of the underlying NPAT and an annualised yield of 6.9%. Woodside Energy CEO Meg O'Neill said: 'Strong underlying performance of our assets, our robust financial performance and a focus on disciplined capital management have enabled us to maintain our interim dividend payout ratio at the top end of the payout range. 'The outstanding performance of our high-quality assets over the first half has continued to support safe, reliable operations. This has been complemented by a strong focus on cost management, resulting in a reduction in our unit production costs. We have also taken a disciplined approach to future growth and reduced spend on new energy and exploration as we prioritise delivering sanctioned projects.' Excluding impairment, the company's earnings before interest, taxes, depreciation and amortisation (EBITDA) from the underlying base business was $4.6bn, a 5% rise from the previous year's $4.37bn. The marketing segment contributed $144m to the total EBIT, accounting for roughly 8% of the total. Woodside said this performance demonstrates the efficiency improvements and value creation derived from the trading, marketing and shipping of its products, including third-party volumes. The company also reported net cash from operating activities of $3.33bn and capital expenditure (capex) of $2.55bn, an 8% increase from 2024. Dividends distributed amounted to $1bn, a 23% decrease from the previous year's $1.3bn. In H1 2025, Woodside entered into three long-term liquefied natural gas (LNG) sales and purchase agreements (SPAs). This encompasses two contracts with Uniper to provide one million tonnes per annum (mtpa) from the Louisiana LNG project for a duration of up to 13 years, starting from the date it commences commercial operations, as well as a supply of up to 1mtpa from Woodside's global portfolio until 2039. Additionally, an SPA was signed with China Resources Gas International for the supply of around 600,000 tonnes per annum of LNG over 15 years, starting in 2027. Woodside has also entered into non-binding heads of agreements with both JERA and Petronas. The company said the Scarborough energy project, located 375km off the Pilbara coast of Western Australia, is 86% complete and remains on track for first LNG cargo in H2 2026. The Trion project, a deep-water oil and gas development in the Gulf of Mexico, is 35% complete and remains on track for first oil in 2028. The Beaumont New Ammonia Project in Beaumont, Texas, is 95% complete, with phase one targeting first ammonia production from late 2025. In June of this year, Woodside finalised the sale of a 40% interest in its Louisiana LNG project to Stonepeak, a global investment firm. "Woodside reports strong production growth in H1 2025" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
21 hours ago
- Business
- Reuters
Woodside cuts exploration, shifts focus to $39 billion project pipeline after profit drop
SYDNEY, Aug 19 (Reuters) - Woodside Energy ( opens new tab said on Tuesday it will scale back exploration efforts and prioritise its $39 billion project pipeline to strengthen its balance sheet, after depreciation and decommissioning costs led to a slump in first-half profit. Woodside, Australia's top gas producer, posted an underlying net profit of $1.25 billion for the six-month period ended June 30, down 24% from $1.63 billion last year. CEO Meg O'Neill said the company will take "a disciplined approach to future growth and reduced spend on new energy and exploration as we prioritise delivering sanctioned projects." In an interview with Reuters, she said Woodside's focus had shifted from pursuing growth projects to "absolutely" concentrating on delivery. Woodside's four major projects, worth a combined $39 billion, include the Scarborough gas field in Western Australia, the Trion deepwater oil field in Mexico, and the Louisiana liquefied natural gas and Beaumont New Ammonia projects in North America. "For Woodside now, it's all about project execution," said James Hood, senior energy analyst at Regal Funds. "The risk for them is they're going through a heavy capex period when the market's expected to be in material oversupply of crude by the end of the calendar year," he said, adding this will ensure Woodside delivers an attractive dividend. The Perth-based company declared an interim dividend of 53 cents apiece, at the higher end of its payout ratio target range of 50% to 80%. The company is seeking a further 20%-30% selldown of its stake in the Louisiana LNG project, and said that it is seeing "strong interest from high-quality potential partners". MST Marquee's Saul Kavonic said Woodside is likely advancing talks with major Northeast Asian buyers, including Japan and Korea, to secure offtake and equity deals in Louisiana. This is aimed at rebalancing trade deficits and appeasing U.S. President Donald Trump. O'Neill said demand from Asia will boost global LNG demand, noting that while Europe has been an important market, significant growth is expected in the 2030s from Asian importers, driven by energy needs for data centres, AI, and chip manufacturing. Shares of Woodside closed 2.79% lower at A$26.14. Woodside's operating revenue rose 10% to $6.59 billion. Still, depreciation and amortisation costs tied to its Sangomar offshore oil and gas field in Senegal totalled $773 million, while a $445 million decommissioning expense weighed on the balance sheet, pushing net debt above expectations to $8.65 billion. ($1 = 1.5413 Australian dollars)
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Woodside Wants to Sell 20%-30% of Louisiana LNG Holding Company
SYDNEY—Woodside WDS -2.79%decrease; red down pointing triangle Energy could retain as much as 80% of the holding company for its $17.5 billion Louisiana LNG project in the U.S. as it progresses talks with potential partners that include Saudi Arabian Oil Co., known as Aramco. In an interview, Chief Executive Meg O'Neill said Woodside wants to sell 20%-30% of Louisiana LNG, which it acquired through the $900 million takeover of Tellurian last year. Negotiations have been ongoing for months, and Woodside decided in April to approve construction of the project before a sell-down of the holding company was agreed.
Yahoo
a day ago
- Business
- Yahoo
Woodside Reports $1.3 Billion Profit as LNG Projects Gain Momentum
Woodside Energy Group (ASX: WDS | NYSE: WDS) posted a net profit after tax (NPAT) of $1.32 billion for the first half of 2025, backed by strong production growth, major project progress, and disciplined capital management. The board declared a fully franked interim dividend of 53 US cents per share, maintaining its payout ratio at 80% of underlying earnings. Woodside produced 548,000 barrels of oil equivalent per day (99.2 MMboe), a 12% year-on-year increase, supported by the ramp-up of the Sangomar oil field in Senegal. Liquids output surged 44% while LNG plant reliability remained at 96%. Unit production costs fell to $7.7/boe, reflecting efficiency gains across the portfolio. CEO Meg O'Neill highlighted Sangomar's contribution, noting it generated nearly $1 billion in revenue in its first year, with production averaging 100,000 barrels per day (80,000 bpd Woodside share). Growth Projects Advance Woodside reported significant progress on its sanctioned developments: Scarborough LNG (WA): 86% complete, first cargo expected in H2 2026. Trion (Mexico): 35% complete, targeting first oil in 2028. Beaumont Ammonia (U.S.): 95% complete. A key milestone was the final investment decision (FID) on the Louisiana LNG Project, positioning Woodside as a global LNG heavyweight. To fund the development, the company sold a 40% interest in Louisiana LNG Infrastructure LLC to Stonepeak for $5.7 billion, with the partner covering 75% of expected project capex in 2025–26. Financials & Capital Discipline Operating revenue: $6.59 billion (+10% YoY) EBITDA: $4.6 billion (+5% YoY) Underlying NPAT: $1.25 billion (down 24% YoY) Free cash flow: $272 million (down 63% YoY) Operating cash flow: $3.34 billion (+40% YoY) Liquidity: $8.43 billion with gearing at 19.5% The company issued $3.5 billion in U.S. bonds during the half, which were heavily oversubscribed, further strengthening its balance sheet. Climate & Safety Woodside reaffirmed it is on track to achieve its 15% Scope 1 and 2 emissions reduction target by 2025 and reported no recordable injuries across Sangomar's first year of operations. Outlook Full-year production guidance was tightened to 188–195 MMboe, while capex (excluding Louisiana LNG) was trimmed to $4.0–4.5 billion. O'Neill said the focus remains on delivering sanctioned projects, while reducing spending on exploration and new energy initiatives. With strong demand fundamentals for LNG in both the Pacific and Atlantic basins, Woodside is positioning itself as a top-tier LNG supplier while maintaining generous shareholder returns. Read this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
a day ago
- Business
- Bloomberg
O'Neill: Expect 30-40% LNG Demand Growth in next decade
First-half profit for Australia's largest oil and gas producer Woodside Energy fell 24% to $US1.25 billion in the six months ending June 30, from $US1.63 billion in the same period last year. A dip in commodity prices and higher depreciation and restoration expenses offset higher production revenues. Meg O'Neill CEO of Woodside Energy, spoke to Bloomberg's Chief Africa Correspondent Jennifer Zabasajja on Horizons Middle East and Africa on the factors affecting oil & gas prices. (Source: Bloomberg)
