Woodside Energy Group (WDS) H1 2026 earnings summary

Executive summary

• Delivered strong operational and financial performance in H1 2026, with reliable production, robust cash flow, and disciplined investment in growth projects amid global energy market volatility.

• Major projects (Scarborough, Trion, Louisiana LNG) advanced on schedule and budget, providing tangible growth catalysts and supporting future cash flow.

• Announced a structural cost reduction target of $350 million per year from 2028, aiming for a simpler, more efficient organization.

• Retired $5 billion new energy investment and Scope 3 emissions targets, reflecting slower market development for lower-carbon opportunities.

• Maintained a durable balance sheet and investment-grade credit rating through peak investment activity.

Financial highlights

• Net profit after tax (NPAT) was $1,672 million, up 27% year-over-year; underlying NPAT was $1,334 million.

• Operating revenue increased 13% year-over-year to $7.4 billion; EBITDA excluding impairment was $4,647 million.

• Free cash flow increased 159% to $352 million; operating cash flow was $3,013 million.

• Interim dividend of 57 US cents per share (80% payout ratio), totaling $1.1 billion.

• Gearing at 20.6%, slightly above the 10–20% target range due to capital-intensive activities and new lease liabilities.

Outlook and guidance

• Full-year 2026 production guidance updated to 174–185 MMboe; capital expenditure guidance unchanged at $4.0–4.5 billion.

• Expect strong cash generation in the second half, supported by higher production, favorable pricing, and completion of major turnarounds.

• Major projects remain on track: Scarborough first LNG cargo in Q4 2026 (98% complete), Trion targeting first oil in 2028 (64% complete), Louisiana LNG targeting first LNG in 2029 (28% complete).

• Committed to 2030 Scope 1 and 2 emissions reduction target; focus on disciplined capital allocation and portfolio optimization.

• Gearing expected to return to target range (10–20%) in H2 2026.