Woodside H1 Revenue Up 13%, Interim Dividend 57 US cps

Woodside Energy Group Ltd (ASX:WDS) released its half-year report for the six months to 30 June 2026, reporting in US dollars, its functional and presentation currency. Operating revenue rose 13% to US$7,446 million and net profit after tax attributable to equity holders of the parent rose 27% to US$1,672 million. Underlying NPAT rose 7% to US$1,334 million; Woodside reports that measure, along with EBITDA excluding impairment, free cash flow, gearing, liquidity, the average realised price and unit production cost, as unaudited non-IFRS alternative performance measures. The company reconciles the gap between the two profit figures to the recognition of an additional Pluto PRRT deferred tax asset of US$596 million (US$417 million post tax) and a US$90 million income tax deferred tax asset on heritage Woodside US net operating loss carryforwards, partly offset by a US$169 million post-tax impairment relating to the Calypso and H2OK projects. EBITDA excluding impairment was US$4,647 million, up 1%. Production fell 13% to 86.5 MMboe (478 Mboe/d) and sales volumes fell 5% to 99.8 MMboe, while the average realised price rose 20% to US$74.0 per boe, struck on adjusted revenue from the sale of products of US$7,381 million, and unit production cost was US$8.8 per boe on 85.0 MMboe of reserves production, a calculation Woodside says excludes feed gas, services and processing costs and processing volumes.

Net cash from operating activities was US$3,013 million, down 10%, and free cash flow was US$352 million against a restated US$136 million in the prior corresponding period, a figure Woodside says includes the US$1,725 million of capital contributions received from Stonepeak and Williams for the development of Louisiana LNG. The directors determined a fully franked interim dividend of 57 US cents per share, up 8%, totalling US$1,084 million and representing 80% of underlying NPAT for the half. Gearing was 20.6%, which Woodside describes as marginally outside its 10 to 20 per cent target range, and liquidity was US$8,189 million. On projects, the company said the Scarborough Energy Project was 98% complete and remains on track to deliver a first LNG cargo in the fourth quarter of 2026, with all upstream infrastructure completed during the half and ready for start-up and first gas achieved at the floating production unit after the period end. The Trion project offshore Mexico was 64% complete and targets first oil in 2028, and the foundation development at Louisiana LNG was 28% complete with first LNG targeted for 2029. Operated LNG facilities achieved 98.7% reliability, Sangomar 99.5% and Shenzi 99.1%. Full-year 2026 total production guidance was narrowed to 174-185 MMboe from 172-186 MMboe, with capital expenditure, abandonment, exploration, production cost and depreciation guidance unchanged. Chief Executive Officer Liz Westcott said the company recorded one high consequence injury while undertaking over 11 million work hours during the period, and that Woodside has set an annual cost savings target of US$350 million from 2028 to be delivered through a structured review of the business.