On Tuesday, Woodside Energy in Australia announced a 4.2% increase in first-half earnings, thanks to record high production levels after full contribution from BHP Group's petroleum holdings. After its merger with BHP's petroleum department was completed in 2022, Woodside became a top-10 worldwide independent oil and gas producer. Oil and natural gas prices, which skyrocketed to …
On Tuesday, Woodside Energy in Australia announced a 4.2% increase in first-half earnings, thanks to record high production levels after full contribution from BHP Group’s petroleum holdings. After its merger with BHP’s petroleum department was completed in 2022, Woodside became a top-10 worldwide independent oil and gas producer.
Oil and natural gas prices, which skyrocketed to record highs in the aftermath of the Russia-Ukraine war last year, slowed in the first half but remained above long-term average levels. Woodside announced overall first-half output of 91.3 million barrels of oil equivalent (MMBOE), a record for the company.
Australia’s top independent gas producer said the underlying net profit after tax for the six months ended June 30 was $1.90 billion, compared to $1.82 billion a year earlier and falling short of the Visible Alpha consensus expectation of $2.02 billion. It declared an interim dividend of 80 cents per share, which fell short of average expectations of 86 cents. In early trade, the oil explorer’s shares dipped 1.2% to Australian dollar $38.0.
Work at the company’s biggest facilities proceeded, with the $12 billion Scarborough liquefied natural gas (LNG) project currently 38% complete. Gas from Scarborough, which is currently awaiting additional environmental permissions, will fuel Woodside’s Pluto LNG facility, with the first LNG shipment expected in 2026. The Scarborough gas field development and Pluto LNG plant expansion together make up Woodside’s biggest growth project.
According to CMC Markets analyst, the overall outcome was “good” because revenue and net profit were on the rise. She mentioned that investors will scrutinize Woodside’s investment in several projects as expenditures rise and dividends fall YoY. Supply concerns in energy can be crucial element in continuing its expansion, she added.
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