Woodside Energy Group reports 1H results; updates FY outlook

Woodside Energy Group reported a revenue of $6.59 billion for the first half of the year, reflecting a 10% increase year-over-year, though it fell short of expectations by $70 million. The company also produced 548 Mboe/d, with reduced unit production costs of $7.70 per boe.

The company achieved a net profit after tax of $1.316 billion and a strong EBITDA of $4.6 billion, while maintaining a solid liquidity position of $8.43 billion and a gearing ratio of 19.5%.

Woodside is on track to meet its target of a 15% reduction in net equity Scope 1 and 2 greenhouse gas emissions by 2025 and has adjusted its full-year production forecasts to a range between 188 and 195 MMboe.

Capital expenditures have been adjusted downward to between $4 billion and $4.5 billion, with significant increases in restoration payment costs and changes in exploration and depreciation expenditures.

Recommendation Rating: Woodside Energy Group Performance Update

Woodside Energy Group (NYSE:WDS) has published its half-year results, revealing a revenue of $6.59 billion for the first half, which represents a year-over-year increase of 10%. However, this figure fell short of expectations by $70 million. The company reported a production output of 548 Mboe/d, totaling 99.2 MMboe, with a notable reduction in unit production costs to $7.70 per boe.

In terms of profitability, Woodside achieved a net profit after tax of $1.316 billion, complemented by a robust EBITDA of $4.6 billion, primarily from its core operations. The operating cash flow stood at $3.339 billion, showcasing effective financial management. The company's disciplined approach to capital management has ensured a strong liquidity position of $8.43 billion and a gearing ratio of 19.5%, both of which remain within the targeted range.

Moreover, Woodside is on track to meet its net equity Scope 1 and 2 greenhouse gas emissions reduction target of 15% by the year 2025.

Looking ahead to 2025, the company has outlined its full-year projections as follows:

• Production: The previous guidance for production was 99.2 MMboe, adjusted to a new estimate between 186 and 196 MMboe, with the latest forecast set at 188 to 195 MMboe.

• LNG Gas Hub Exposure: The share of produced LNG has been revised from 24.2% to 34.0%, reflecting a 9.8% shift, maintaining the target range of 28% to 35%.

• Unit Production Cost: A decrease from $7.70 to $8.30 per boe was noted, now estimated between $8.0 and $8.5 per boe for 2025.

• Depreciation and Amortization: The depreciation and amortization for property, plant, and equipment increased from $2.541 billion to $1.893 billion, with updates showing predictions between $4.7 billion and $5 billion for the upcoming year.

• Exploration Expenditure: Expenses in this area dropped from $112 million to $86 million, maintaining a target of $200 million going forward.

• Restoration Payments: Costs rose significantly from $325 million to $565 million, reflecting a target range of $700 million to $1 billion.

• Capital Expenditure: Excluding Louisiana LNG, capital expenditures showed a reduction from $2.365 billion to $1.773 billion, with projections adjusted downwards to between $4 billion and $4.5 billion.

• Louisiana LNG Capital Expenditure: An allocation of $785 million was noted with no previous projections to compare.

This information is part of the interim reporting provided to the ASX under Listing Rule 4.2A and should be considered alongside Woodside’s Annual Report for 2024.