Woodside Energy Group (WDS) H2 2024 earnings summary

Executive summary

• Achieved record annual production of 194 million barrels of oil equivalent in 2024, driven by Sangomar's strong ramp-up and major project execution, including Scarborough (80% complete) and Trion (over 20% complete).

• Net profit after tax rose 115% year-over-year to $3.6 billion, with underlying NPAT at $2.9 billion and EPS of $1.89, reflecting robust operational and financial outcomes.

• Fully franked total full year dividend of $1.22 per share (US 122 cps), totaling $2.3 billion and maintaining an 80% payout ratio at the top end of the range.

• Significant portfolio expansion through acquisitions of Beaumont Clean Ammonia, Tellurian/Louisiana LNG, and asset swaps, positioning for long-term growth.

• Achieved a 14% reduction in net equity Scope 1 and 2 emissions from the base year and advanced climate targets.

Financial highlights

• Operating revenue was $13.2 billion, down 6% year-over-year; EBITDA was $9.3 billion, down 1%.

• Unit production cost reduced to $8.10 per barrel of oil equivalent despite inflationary pressures.

• Peer-leading EBITDA margin of 70% and cash margin improved to 82% from 80% in 2023.

• Free cash flow dropped 82% to $100 million, impacted by acquisitions and investments.

• $2.3 billion in cash proceeds from Scarborough JV sell-downs, strengthening liquidity.

Outlook and guidance

• Portfolio sales expected to grow at a 4%-5% CAGR from 2024 to 2030, offsetting legacy production declines.

• Scarborough project 80% complete, targeting first LNG cargo in 2026; Trion over 20% complete, targeting first oil in 2028.

• Beaumont Clean Ammonia phase I 83% complete, targeting first production in H2 2025 and lower carbon ammonia in H2 2026.

• Louisiana LNG progressing toward final investment decision in Q1 2025.

• Targeting 15% reduction in net equity Scope 1 and 2 emissions by end-2025 and 30% by 2030.