Woodside Energy Group announces first-half results and revises full-year forecast.
Financial Performance: Woodside Energy Group reported a 1H revenue of $6.59 billion, which is a 10% increase year-over-year but fell short by $70 million. The net profit after tax was $1,316 million.
Production and Costs: The company delivered production of 548 Mboe/d with reduced unit production costs at $7.7/boe, while achieving strong EBITDA of $4.6 billion from its underlying business.
Capital Management: Woodside demonstrated disciplined capital management with liquidity of $8.43 billion and a gearing ratio of 19.5%, maintaining it within the target range.
Environmental Goals: The company is on track to meet its net equity Scope 1 and 2 greenhouse gas emissions reduction target of 15% by 2025, alongside providing updated guidance for production and capital expenditures.
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- Share Price Decline: BP PLC shares experienced a decline on Tuesday.
- Financial Strategy Change: The company is focusing on strengthening its balance sheet and has suspended its share buybacks.
- Collaboration Background: Woodside Energy and the Texas Entrepreneurship Exchange for Energy (TEX-E) have announced a partnership aimed at accelerating early-career energy talent development in Houston, engaging directly with US university students and supporting climate programs.
- Internship Program Launch: Woodside will initiate a US Summer Internship Program in 2026 and a Graduate Development Program in 2027, designed to recruit high-potential students through curated internship pipelines, enhancing the company's competitiveness in the energy sector.
- Innovation Accelerator Support: This collaboration will support the Woodside-Rice Decarbonization Accelerator's Summer Fellow, who will directly engage in technology development aimed at reducing greenhouse gas emissions, highlighting the company's growing significance in Houston's innovation ecosystem.
- Long-term Commitment: Woodside's innovation commitment in Houston includes a $12.5 million investment in the Decarbonization Accelerator, aimed at cultivating high-caliber students to meet the evolving skill demands of the energy industry and promote sustainable development.
- Dividend Growth Trend: Oneok recently raised its dividend by 4%, pushing its yield to 5.5%, and has a track record of over 25 years of stable or increasing dividends, with an expected annual growth of 3% to 4%, enhancing its attractiveness and supporting investor confidence.
- Acquisitions and Integration: Through three large-scale acquisitions in recent years, Oneok anticipates capturing hundreds of millions in cost savings and commercial synergies, which will not only enhance its financial flexibility but also provide robust support for future dividend growth.
- Kinetik Dividend Increase: Kinetik Holdings recently declared a dividend that is 4% higher than the previous quarter, boosting its yield to 8%, marking the second consecutive year of a 4% dividend increase, demonstrating strong cash flow and ongoing growth potential.
- Williams' Expansion Plans: Williams recently hiked its dividend by 5%, raising its yield to 3.2%, and has a substantial backlog of organic expansion projects expected to come online by 2030, which will provide ample momentum for future dividend growth.
- Oneok Dividend Growth: Oneok recently raised its dividend by 4%, pushing its yield to 5.5%, and has demonstrated a nearly 100% growth in dividends over the past decade, indicating strong stability in payments and an expectation to continue increasing by 3% to 4% annually.
- Kinetik Holdings Performance: Kinetik Holdings declared its latest dividend 4% higher than the previous quarter, boosting its yield to 8%, marking its second consecutive year of 4% dividend growth, reflecting the effectiveness of its capital recycling strategy and potential for further increases.
- Williams Stability: Williams increased its dividend by 5%, raising its yield to 3.2%, and has paid quarterly dividends since 1974; while it hasn't raised its dividend every year, it has been growing at a mid-single-digit rate recently, showcasing a strong financial foundation and future growth potential.
- Investment Opportunities: Oneok, Kinetik, and Williams offer high-yielding dividends expected to continue growing, making them attractive long-term investments, especially in the current market environment, where investors can benefit from stable cash flows and potential capital appreciation.
- Quarterly Revenue Performance: Woodside Energy reported Q4 revenue of $3.04 billion, a 12.6% year-over-year decline primarily due to seasonal weather impacts and reduced demand on Australia's east coast, indicating vulnerability amid market fluctuations.
- Production Capacity Exceeds Expectations: The company achieved a record full-year production of 198.8 million barrels of oil equivalent (MMboe), averaging 545 MMboe/d, surpassing its 2025 production guidance, demonstrating strong performance in resource development.
- Asset Reliability Improvement: Reliability at the Sangomar and Shenzi oil fields reached 99.2% and 98%, respectively, while Pluto LNG and North West Shelf projects achieved 100% and 99.8% reliability for two consecutive quarters, showcasing excellence in operational management.
- Future Outlook: The 2026 production guidance is set at 172-186 MMboe, reflecting a major turnaround at Pluto LNG, and despite challenges, the company remains committed to achieving first LNG delivery from the Scarborough project.
- Production Decline: Woodside Energy's Q4 production decreased to 48.9 million barrels of oil equivalent (MMboe), down approximately 5% from 51.4 MMboe last year, indicating challenges in operational efficiency.
- Sales Decrease: The quarter's sales volume was 52.4 MMboe, a 3% decline from 54.1 MMboe in the previous year, reflecting weakened market demand and potential adjustments in sales strategies.
- Revenue Drop: Q4 revenue fell to $3.035 billion, down 13% from $3.484 billion year-over-year, putting pressure on the company's financial health and potentially impacting future investment decisions.
- Future Outlook: The company anticipates its first LNG from the Scarborough project in Q4 2026, with a production guidance of 172-186 MMboe for 2026, factoring in planned downtime at Pluto, highlighting strategic expansion efforts despite current challenges.








