Woodside reports $1.94 billion half-year profit amid major project milestones

Woodside reported a net profit after tax (NPAT) of US $1.94 billion for the half year. The underlying NPAT was $1.63 billion, reflecting a 14% decrease compared to the same period in 2023. The company generated an operating cash flow of $2.4 billion and positive free cash flow of $740 million. Woodside maintained a strong liquidity position with $8.48 billion available.

The company declared a fully franked interim dividend of $0.69 per share, representing an annualised dividend yield of 7.3%. This payout ratio is approximately 80% of the underlying NPAT, aligning with the top end of the company’s payout range.

In the first half of 2024, Woodside delivered a total production of 89.3 million barrels of oil equivalent (MMboe), with a daily output of 491,000 barrels of oil equivalent (Mboe/d). The company successfully reduced its unit production cost to $8.3/boe, down from $8.8/boe in H1 2023.

Meg O’Neill, CEO of Woodside, highlighted the company’s strong performance and strategic advancements: "The results demonstrate Woodside’s high-performing base business continues to deliver strong dividends to shareholders while laying a foundation for future success."

O’Neill also emphasised the company’s commitment to safety and innovation: "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."

A major milestone was achieved with the first oil production at the Sangomar Project in June 2024. The project, Senegal’s first offshore oil development, reached its nameplate capacity with gross production rates of 100,000 barrels per day shortly after the reporting period.

Woodside also progressed its Scarborough Energy Project, which was 67% complete by the end of H1 2024. The project remains on track to deliver its first LNG cargo in 2026.

The company made significant strides in its business strategy, including the completion of the sale of a 10% non-operated participating interest in the Scarborough Joint Venture (SJV) to LNG Japan for $910 million. Additionally, an agreement was signed with JERA for the sale of a further 15.1% interest in the SJV, with an estimated total consideration of $1.4 billion.

In a move to enhance its LNG portfolio, Woodside agreed to acquire Tellurian, including its US Gulf Coast Driftwood LNG development, for approximately $900 million. The company also entered into an agreement to acquire OCI’s Clean Ammonia Project in Beaumont, Texas, for $2.35 billion, positioning itself as a leader in the emerging lower-carbon ammonia industry.