Janice R. Andrews
Australia’s Woodside Energy has reported a 14% drop in half-year profit due to lower oil prices, but the company’s results surpassed market expectations, leading to a 4% rise in its shares. The energy giant posted an underlying net profit after tax of $1.63 billion for the six months ending June 30, beating the $1.38 billion estimate by Visible Alpha.
Despite the decline in profit, Woodside declared a stronger-than-expected interim dividend of 69 U.S. cents per share, down from 80 U.S. cents a year earlier but still representing 80% of underlying net profit after tax. This was above market expectations of a 55-cent payout.
CEO Meg O’Neill highlighted the significant interest in Woodside’s proposed sale of equity in the Driftwood LNG project, which the company will acquire after purchasing U.S. LNG developer Tellurian for $1.2 billion, including debt. The sale has drawn interest from companies with various focuses, including upstream gas supply, infrastructure, and offtake interests.
Woodside aims to secure firm commitments or signed deals on equity sales before making a final investment decision in Q1 2025. Despite lower oil prices, with the average realized price falling to $63 per barrel from $74 the previous year, the company remains optimistic about its growth prospects and strategic developments.
Woodside’s strong performance and strategic moves position the company well for future growth, particularly in the competitive LNG market.
