Woodside Energy has announced its half-year report for period ending 30 June 2024.
Financial highlights
- Net profit after tax of $1,937 million.
- Underlying net profit after tax of $1,632 million.(1)
- Operating cash flow of $2,393 million and positive free cash flow of $740 million.(1)
- Australian tax and royalty payments of A$2,682 million.
- Liquidity of $8,479 million.(1,2)
- Determined a fully franked interim dividend of 69 US cents per share (cps), at the top end of the payout range and representing a half-year annualised dividend yield of 7.3%.(3)
Operational highlights
- Delivered H1 production of 89.3 MMboe (491 Mboe/d). Full year production guidance remains unchanged.
- Reduced unit production cost to $8.3/boe ($8.8/boe in H1 2023) despite the inflationary environment.
- Achieved first oil at the Sangomar Project in June 2024. Subsequent to the period the project achieved nameplate capacity with gross production rates of 100,000 barrels per day.
- Continued to embed the Field Leadership Program to strengthen our learning culture and improve safety outcomes.
- Took a final investment decision (FID) on Lambert West, Xena-3 and Atlantis Drill Centre 1 Expansion (DC1X).
Business highlights
- The Scarborough Energy Project was 67% complete at the end of H1 2024, with first LNG cargo expected in 2026.(4)
- Signed an agreement with JERA for the sale of a 15.1% non-operated participating interest in the Scarborough Joint Venture (SJV). Estimated total consideration for the sale is $1,400 million.(5)
- Completed the sale of a 10% non-operated participating interest in the SJV to LNG Japan for $910 million.(6)
- Signed sale and purchase agreements (SPAs) with Korea Gas Corporation (KOGAS) and CPC Corporation, Taiwan (CPC) for the long-term supply of LNG to Korea and Taiwan respectively.
- Continued to progress the Trion Project engineering, procurement and contracting.
- Subsequent to the period, Woodside entered into two transactions that have significant cash generation potential to underpin long-term shareholder value.(7) These are agreements to acquire:
- Tellurian, including its US Gulf Coast Driftwood LNG development opportunity, for an all-cash payment of approximately $900 million; and
- OCI’s Clean Ammonia Project in Beaumont, Texas for an all-cash consideration of approximately $2,350 million.
Summary
Woodside reported net profit after tax (NPAT) for the half-year of $1,937 million. Production was 89.3 MMboe (491 Mboe/d) and underlying NPAT was $1,632 million, down 14% on the corresponding period in 2023.
The directors have determined a fully franked interim dividend of 69 US cents per share (cps), representing an approximately 80% payout ratio of underlying NPAT.
Woodside Energy CEO Meg O’Neill said the results demonstrate how Woodside’s high performing base business continues to deliver strong dividends to shareholders while laying a foundation for future success.
'We maintained high reliability of 97.9% at our operated LNG assets and continue to manage costs effectively in an inflationary environment.
'In the first half of 2024 we delivered on a significant element of our strategy, achieving first production from Sangomar, Senegal’s first offshore oil project. Production ramp-up at Sangomar has progressed well and subsequent to the period, peak gross production rate of 100,000 barrels per day was achieved, demonstrating Woodside’s world-class project execution capability. Sangomar will deliver enduring value for Woodside shareholders and benefits for our partner Petrosen and the people of Senegal.
'We also made good progress on the Scarborough Energy Project in Western Australia, which is more than two-thirds complete and on track for first LNG cargo in 2026. Work on the Scarborough floating production unit passed a major milestone with structural completion of the topsides. Pluto Train 2 site works continued with 29 of the 51 modules delivered and 25 modules set in position.
'We completed the sale of a 10% non-operating participating interest in the Scarborough Joint Venture (SJV) to LJ Scarborough Pty Ltd (LNG Japan) for $910 million and executed a binding sale and purchase agreement for the sale of a further 15.1% non-operating participating interest in the SJV to JERA.
'Long-term LNG supply agreements were also reached with Korea Gas Corporation and with CPC Corporation, Taiwan, underlining the importance of LNG in regional energy security.
'Our agreement last month to acquire Tellurian, including its US Gulf Coast Driftwood LNG development further strengthens our LNG portfolio, complementing our existing Pacific basin position with additional exposure in the Atlantic basin. Woodside expects to leverage its global LNG expertise to unlock this development and enable long-term cashflow generation.
'In our new energy business, all primary environmental approvals have been secured for the Hydrogen Refueller @H2Perth, which is targeting supplying industrial customers in Western Australia in 2025. We have also progressed several carbon capture and storage (CCS) opportunities, including the signing of a memorandum of understanding between the Angel CCS Joint Venture and Yara Pilbara Fertilisers to study the use of the technology.
'We continue to deliver on our strategy to thrive through the energy transition whilst maintaining our disciplined capital management. Our agreement to acquire OCI’s Clean Ammonia project in Texas positions Woodside to be an early mover in the emerging lower carbon ammonia industry and makes a significant contribution to delivering our Scope 3 targets.
'Above all, we are committed to continually improving safety and have focused on strengthening our safety culture, simplifying our processes and improving our systems.
'As we officially mark 70 years as an Australian company, I am proud that Woodside is facing the future with the same spirit of innovation and determination that our founders showed.'
