Woodside's 1st Half Statutory Profit Rises 27%, Sets $350 Million Cost Saving Goal

By David Winning

SYDNEY--Woodside Energy said its half-year profit rose by 27% as reduced output blunted the tailwind of stronger energy prices, and the company spent more on running its new ammonia plant in the U.S.

Woodside reported a net profit of US$1.67 billion for the six months through June, up from US$1.32 billion a year ago. The result was supported by a 13% rise in operating revenue, as its oil and natural gas output fetched higher prices than a year ago, fanned by the conflict in the Middle East.

On an underlying basis, which helps to determine dividend payouts, Woodside said its half-year profit totaled US$1.33 billion, up 7% on a year ago.

Directors of the company declared an interim dividend of US$0.57 per share, up from US$0.53 a year ago. Woodside said it represented a payout of 80% of underlying net profit, in line with levels of recent years.

Woodside has become a key beneficiary of the Middle East conflict pushing energy prices higher as its operations are located outside the region and it has an active trading arm that can take advantage of buyers seeking alternative supply of crude oil and liquefied natural gas.

Woodside realized an average price of US$74.00 a barrel of oil equivalent for its output in the half-year period, up 19% on a year ago. That supported a rise in operating revenue to US$7.45 billion, from US$6.59 billion. Management has signaled that lags in pricing of liquefied natural gas are likely to be realized in the three months through September, anchoring earnings more.

Still, the company wasn't able to capture all the benefits of higher energy prices as it shut down the Pluto LNG project offshore Australia for planned maintenance in May. That drove a 13% fall in first-half output to 86.5 million barrels of oil equivalent, more than offsetting consistent production from the Sangomar oil field in Senegal.

Under new Chief Executive Liz Westcott, Woodside is preparing for the start up of the Scarborough natural-gas project offshore Australia in the fourth quarter of this year and it has reviewed how it deploys capital and assets within its portfolio.

Woodside's half-year result included a US$135 million impairment charge tied to its 70% stake in the Calypso natural-gas project in Trinidad & Tobago, which the company this month agreed to sell to BP.

"As we focus on Woodside's next phase of disciplined delivery, we have announced a series of actions to lift performance and sharpen our focus on value," said Westcott. "We have set an annual cost savings target of US$350 million from 2028 to be delivered through the structured review of our business."

Woodside's focus is increasingly on Australia and North America where it is developing projects that will contribute to profits in coming years. In addition to Scarborough, Woodside has lifted its equity position in the undeveloped Browse natural-gas field, agreed to swap assets with Chevron, and taken over operatorship of assets in Australia's Gippsland Basin from Exxon Mobil.

In the U.S., Woodside has faced some setbacks in ramping up the Beaumont New Ammonia project, including finding feedstock to run through the plant. Woodside recently said the plant operated ay 69% of capacity in the second quarter because it wasn't able to get enough feedstock from third parties.

Its medium-term project pipeline includes the Louisiana LNG project in the U.S., which was 28% complete at the end of June. Woodside has previously signaled a desire to reduce its overall equity interest in the project to around 50%.

Some analysts have speculated that Woodside's global footprint could make it an acquisition target for U.S. oil companies whose cash flow has been strengthened by the rise in energy prices. Woodside said in June that it wasn't in discussions with Exxon about a deal.

On Tuesday, Woodside said it has revised its annual production guidance to 174 million-185 million barrels of oil equivalent. Previously it had targeted output of between 172 million and 186 million barrels of oil equivalent.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

August 24, 2026 18:53 ET (22:53 GMT)