Woodside Energy Reports 14% Decline in Half-Year Profit

By Himanshi Akhand and Lewis Jackson

(Reuters) – Australia’s Woodside Energy reported a 14% decline in half-year profit, negatively impacted by lower oil prices. However, the result and its dividend exceeded market expectations, causing shares to rise by 4%.

Chief Executive Meg O’Neill noted significant interest in the proposed sale of equity in Driftwood, a U.S. liquefied natural gas (LNG) export project, as Woodside prepares to acquire U.S. developer Tellurian for $1.2 billion, including debt.

“We’re looking at companies who can support with upstream gas supply,” O’Neill stated, mentioning interest from companies in offtake and the plant’s infrastructure.

Woodside aims to secure firm commitments for equity sales before finalizing its investment decision in early 2025. Additionally, the company plans to take one of its five LNG trains offline at the Karratha Gas Plant between late 2024 and mid-2025 due to declining production from aging fields.

The underlying net profit after tax for the six-month period ending June 30 was $1.63 billion, significantly surpassing a Visible Alpha consensus estimate of $1.38 billion. Shares in Woodside surged, closing up 3.9%.

The profit decline was primarily due to falling oil prices, with Woodside’s average realized price dropping to $63 per barrel from $74 in the same period last year.

Woodside declared an interim dividend of 69 U.S. cents a share, down from 80 U.S. cents last year, representing 80% of the underlying net profit after tax. The company had indicated a payout range of 50% to 80%, and the market had anticipated a payout of 55 cents.