Company Interview / Acquisitions and capex lift Woodside's net debt

Key Points

Production up 11%, revenue up 10%, unit costs down 7% at Woodside (ASX:WDS) Strong gas prices in Europe and Asia support LNG revenue despite lower oil prices Major projects include Scarborough, Trion, Beaumont Ammonia, and Louisiana LNG Regulatory delays hinder the North West Shelf extension approval process

Woodside (ASX:WDS) reports a strong operational performance for the half year, according to Meg O’Neill. Production rose by 11% compared to the previous period, driven by the Sangomar oilfield in Senegal. Despite robust revenue growth of 10% and a 7% reduction in unit production costs, profit declined due to higher depreciation from new assets. O’Neill maintains that as reserves increase and subsurface understanding improves, depreciation rates will moderate over time. The company remains committed to returning value to shareholders, even with softer commodity prices.

O’Neill notes that while oil prices are down as OPEC+ unwinds production cuts, gas prices have remained strong in European and Asian markets. This has led to more favourable realised prices for Woodside’s LNG, supporting the bottom line. The Scarborough gas project is 86% complete, with first LNG cargoes targeted for the second half of next year, while other major projects such as Trion in Mexico and Beaumont Ammonia are progressing as planned. Woodside’s entry into Louisiana LNG through the acquisition of Tellurian and a partnership with Stonepeak further expands its LNG footprint.

Addressing regulatory challenges, O’Neill highlights frustration with approval delays for the North West Shelf extension, calling for timely, science-based operational conditions. She supports domestic gas reservation for Australia’s east coast, emphasising the need to reduce regulatory barriers for new gas development.