Woodside Reports 99.2 MMboe Production, 7% Cost Cut, and 53 US Cents Dividend
Woodside Energy Group Ltd has reported a robust first half of 2025, marked by strong production growth, reduced costs, and solid financial returns, while advancing key LNG projects and sustainability goals.
- 11% increase in half-year production to 99.2 million barrels of oil equivalent
- Unit production costs reduced by 7% to $7.7 per barrel of oil equivalent
- Interim dividend of 53 US cents per share, fully franked, with a 6.9% annualised yield
- Louisiana LNG and Scarborough projects progressing on schedule
- On track to meet greenhouse gas emissions reduction targets with zero high consequence injuries
Strong Operational Performance
Woodside Energy Group Ltd has delivered a compelling half-year performance in 2025, with production climbing 11% to 99.2 million barrels of oil equivalent (MMboe). This growth was largely driven by the outstanding reliability and output of the Sangomar FPSO, which achieved nearly 99% uptime and generated approximately $1 billion in revenue during the period. The company also successfully reduced its unit production costs by 7%, bringing costs down to $7.7 per barrel of oil equivalent, reflecting disciplined cost control and high asset reliability.
Financial Strength and Shareholder Returns
Woodside’s financial results underscore its market resilience amid fluctuating commodity prices. Operating revenue rose 10% to $6.6 billion, while EBITDA reached $4.6 billion, maintaining a peer-leading 70% margin. Despite a 24% decline in underlying net profit after tax to $1.2 billion, largely due to lower average realised prices and depreciation from new assets, the company generated a strong operating cash flow of $3.3 billion, up 40% year-on-year. Reflecting this robust cash generation, Woodside declared a fully franked interim dividend of 53 US cents per share, translating to a 6.9% annualised yield, positioned at the top end of its payout range.
Progress on Growth Projects
Woodside continues to advance its major growth projects with momentum. The Scarborough Energy Project is 86% complete, with key milestones such as the connection of the floating production unit hull and topsides achieved, and first LNG targeted for the second half of 2026. Meanwhile, the Louisiana LNG project has reached 35% completion, with the floating production unit hull keel laid and major contracts awarded. The partnership with Stonepeak, which acquired a 40% stake, has bolstered funding and reduced Woodside’s capital exposure, supporting the project’s targeted first LNG in 2029.
Sustainability and Safety Milestones
Woodside reported zero high consequence injuries in the first half of 2025, reinforcing its commitment to safety. The company is on track to meet its net equity Scope 1 and 2 greenhouse gas emissions reduction targets, aiming for a 15% cut by 2025 and 30% by 2030 relative to its baseline. Progress in new energy products is highlighted by the Beaumont New Ammonia project, nearing 95% completion and preparing for first ammonia production in late 2025. Woodside also continues to engage with Traditional Owners and maintain robust environmental management, with no significant environmental impacts reported.
Capital Discipline and Market Position
The company’s balance sheet remains strong, with gearing at 19.5%, comfortably within its 10-20% target range, and liquidity of $8.4 billion. Woodside’s investment grade credit ratings from S&P Global and Moody’s were reaffirmed recently. The company’s marketing and trading capabilities contributed approximately 8% of EBIT, leveraging a portfolio approach that balances commodity price exposure with revenue certainty. Woodside also announced plans to assume operatorship of the Bass Strait assets in 2026, aiming to enhance operational efficiencies and unlock further value.
Bottom Line?
Woodside’s solid half-year results and disciplined growth strategy position it well to navigate market volatility and deliver sustained shareholder value.
Questions in the middle?
- How will Woodside manage commodity price risks amid ongoing global energy market uncertainties?
- What are the implications of the North West Shelf Project Extension pending federal approval?
- How aggressively will Woodside pursue its Scope 3 emissions reduction and new energy investments?
