27th Aug 2024 10:38
(Alliance News) - Woodside Energy Group Ltd reported a weaker interim period financially and production-wise, as it "lays the foundation for future success".
The Perth, Australia-based oil and gas company said operating revenue in the first half fell 19% year-on-year to USD5.99 billion from USD7.40 billion.
Woodside said last month that second-quarter output declined 0.2% on-year to 44.4 million barrels of oil equivalent, from 44.5 million barrels a year prior. Woodside noted "planned maintenance activities, weather impacts at North West Shelf and unplanned outages at Wheatstone and Julimar" kept a lid on output.
It said it is on track to achieve its full-year production guidance of 185-195 million barrels of oil equivalent, compared to 187.2 million boe in 2023.
Net profit after tax for the first half rose 11% to USD1.94 billion from USD1.74 billion. Earlier this month, Woodside had flagged that its effective tax rate over the period would be materially lower than the prior year, mostly due to the recognition of a net deferred tax asset relating to the Sangomar project.
"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," said Chief Executive Officer Meg O'Neill.
The project will deliver "enduring value" for shareholders, O'Neill added.
The CEO also pointed to "good progress" made at the Scarborough energy project in Western Australia, which is "more than two-thirds complete and on track for first [liquefied natural gas] cargo in 2026".
In the period, Woodside completed the sale of a 10% non-operated interest in the Scarborough joint venture to LJ Scarborough Pty Ltd for USD910 million and executed a binding sale and purchase agreement for a further 15% for an estimated consideration of USD1.40 billion to JERA Scarborough Pty Ltd.
Underlying net profit after tax fell 14% to USD1.63 billion from USD1.90 billion.
Woodside declared an interim dividend of 69 US cents. This was in line with the 80% payout ratio of underlying NPAT, so was down 14% from 80 cents a year before.
Shares in Woodside closed up 3.9% to AUD27.42 each in Sydney on Tuesday. In London, shares were up 4.2% at 1,390.00 pence each in the morning.
Net debt at the end of June climbed 67% from the prior year to USD5.39 billion, which Woodside said was in line with its planned capital expenditure.
Woodside recently announced two major acquisitions.
It plans to pay USD2.35 billion to buy Clean Ammonia Holding BV, and its lower carbon ammonia project in Beaumont, Texas. The deal will give the firm an "early-mover advantage" in the burgeoning lower carbon ammonia market, Woodside had said.
"We continue to deliver on our strategy to thrive through the energy transition whilst maintaining our disciplined capital management," O'Neill said.
It also announced a USD1 billion deal to acquire New York-listed, Texas-based natural gas firm Tellurian Inc, to create a "global liquefied natural gas powerhouse".
In June 2022, Woodside roughly doubled in size after it formally sealed a merger with the petroleum business of miner BHP Group Ltd.
By Elizabeth Winter, Alliance News deputy news editor, Global services, and Elijah Dale, Alliance News reporter
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