Woodside Energy Group (WDS) H2 2025 earnings summary

Executive summary

• Achieved record annual production of 198.8 million barrels of oil equivalent in 2025, exceeding guidance, driven by strong performance at Sangomar and high reliability across the portfolio, with zero high-consequence injuries.

• Delivered underlying net profit after tax (NPAT) of $2.6 billion and reported NPAT of $2.7 billion, with record production offsetting lower realized prices compared to 2024.

• Major growth projects progressed on budget and schedule: Scarborough (94% complete, first LNG cargo expected Q4 2026), Trion (50% complete, targeting first oil in 2028), Louisiana LNG (22% complete, targeting first LNG in 2029), and Beaumont New Ammonia (first production in December 2025, full handover H1 2026).

• Returned $2.1 billion in fully franked dividends, maintaining an 80% payout ratio of underlying NPAT, with a full-year dividend of $1.12 per share.

• Achieved a 15% reduction in net equity Scope 1 and 2 GHG emissions from the starting base.

Financial highlights

• Free cash flow of $1.9 billion generated despite increased capital expenditure and softer prices, rebounding from negative free cash flow in 2024.

• EBITDA of $9.3 billion with a margin over 70%; operating revenue of $13.0 billion, down 1% year-over-year.

• Gearing at 18.2%, within the 10%-20% target range, and liquidity of $9.3 billion, up 38% from 2024.

• Dividend payout ratio at 80%, with approximately $11 billion returned to shareholders since 2022.

• Unit production costs reduced to $7.80/boe, a 4% year-over-year reduction.

Outlook and guidance

• 2026 is a transition year with major Pluto turnaround and Scarborough startup in Q4; production guidance of 172–186 MMboe, including 2–3 MMboe from Beaumont New Ammonia.

• Capital expenditure guidance of $4.0–4.5 billion for 2026.

• Continued focus on disciplined cost control, operational efficiency, and ramp-up of new assets including Beaumont New Ammonia.

• Ongoing sell-down of Louisiana LNG HoldCo targeted, with strong interest from strategic partners.

• Dividend policy remains 50%-80% of underlying NPAT, with flexibility for special dividends or buybacks.