Woodside Energy Group (WDS) H1 2024 earnings summary

Executive summary

• Net profit after tax for H1 2024 was $1.9 billion, up 11% year-over-year, with free cash flow of $740 million and a fully franked interim dividend of $0.69 per share at the top end of the payout range.

• Achieved first oil at Sangomar, reaching nameplate capacity; Scarborough Energy Project is 67% complete and on track for first LNG cargo in 2026.

• Announced acquisitions of Tellurian's Driftwood LNG and OCI's Clean Ammonia Project to support long-term growth, energy transition, and portfolio diversification.

• Maintained strong operational performance with unit production cost reduced by 6% to $8.30/boe despite inflation.

• Introduced new Scope 3 emissions abatement target and joined the UN Oil and Gas Methane Partnership.

Financial highlights

• Operating revenue was $5,988 million, down 19% from H1 2023; EBITDA was $4,371 million, down 11% year-over-year.

• EBIT fell 15% to $2,362 million; NPAT rose 11% to $1,937 million, while underlying NPAT declined 14% to $1,632 million.

• Free cash flow surged 136% to $740 million, supported by the Scarborough JV sell-down.

• Interim dividend of $0.69 per share (69 US cps), fully franked, with an 80% payout ratio and a 7.3% annualised yield.

• Liquidity at period end was $8.5 billion, up 13% year-over-year; net debt increased 67% to $5.4 billion, with gearing at 13.3%.

Outlook and guidance

• Full-year 2024 production guidance remains at 185–195 MMboe, supported by 98% LNG reliability and over 89 million barrels of oil equivalent produced.

• Scarborough project 67% complete, targeting first LNG cargo in 2026; Trion project remains on track for first oil in 2028.

• Capital expenditure guidance unchanged at $5.0–5.5 billion for 2024.

• Continued hedging of 30 million barrels of oil expected in 2025, with 2026 hedging to be reviewed as Driftwood plans firm up.

• Acquisitions of Tellurian and OCI Clean Ammonia Project expected to close in H2/Q4 2024, supporting long-term portfolio diversification.