Woodside reports first-half records for production, net profit

(Sharecast News) - Woodside Energy reported a record first-half net profit after tax on Tuesday of $1.74bn, while its underlying net profit excluding one-off items reached an even higher figure of $1.9bn. The company recorded a positive free cash flow of $294m, and held liquidity assets totalling $7.51bn.

Reflecting that strong performance, the board declared an interim dividend of 80 US cents per share, equating to a half-year annualised dividend yield of 6.9%.

On the operational front, Woodside achieved a record first-half production output of 91.3 million barrels of oil equivalent.

Notably, in April it saw its first production from the Mad Dog Phase 2 Argos platform.

Additionally, the firm successfully executed a major turnaround at its Pluto LNG facility, completing it on schedule.

In terms of project progress, Woodside's Scarborough development was now 38% complete, with key milestones including the advancement of the floating production unit topsides, pipeline fabrication, and foundation site works for the Pluto Train 2 module.

Additionally, Woodside said it had agreed to sell a 10% stake in the Scarborough Joint Venture to LJ Scarborough - an entity associated with LNG Japan.

That agreement also set the foundation for a wider strategic partnership, potentially covering LNG offtake and exploring new energy opportunities on a global scale.

Furthermore, the Sangomar project was approaching completion with an 88% progress rate.

With 12 out of the planned 23 wells drilled and completed, the floating production storage and offloading topsides integration and pre-commissioning activities were currently underway in Singapore.

The company also confirmed the approval of final investment decisions (FID) for both the Trion and Julimar-Brunello Phase 3 projects.

Looking at its new energy and carbon initiatives, Woodside said it was progressing key activities for its H2OK project, with the aim of achieving FID readiness this year.

Additionally, the Woodside Solar project, which would encompass solar generation, battery energy storage, and transmission infrastructure, was also progressing toward its targeted FID readiness in 2023.

During the period, the company was awarded a contract for the engineering and fabrication of hydrogen production equipment, set to be used for the Hydrogen Refueller H2Perth initiative.

Lastly, front-end engineering design (FEED) activities for Phase 1 of the South East Australia Carbon Capture and Storage (SEA CCS) project were also in progress.

"Our strong financial performance and our focus on disciplined capital management has enabled us to maintain our interim dividend payout ratio through the cycle," said chief executive officer Meg O'Neill.

"Woodside's gearing remained low at 8.2% at the end of the first half.

"Our active management of the debt portfolio positions Woodside's balance sheet well as we invest in future production."

At 0811 BST, shares in Woodside Energy were up 2.47% in London, at 1,990p.

Reporting by Josh White for Sharecast.com.