Woodside Energy delivered a strong first half in 2026, with revenue up 13% to $7.45 billion, net profit after tax reaching $1.67 billion, and key LNG and oil projects advancing on schedule. The company declared a fully franked interim dividend of 57 US cents per share amid ongoing global market volatility.
- Operating revenue rose 13% to $7.45 billion
- Net profit after tax increased 27% to $1.67 billion
- Production at 478 Mboe/d with unit costs of $8.8/boe
- Scarborough Energy Project 98% complete, on track for Q4 LNG
- Interim dividend declared at 57 US cents fully franked
Strong Financial Performance Amid Global Volatility
Woodside Energy Group Ltd (ASX:WDS, NYSE: WDS) reported a robust half-year performance for the six months ended 30 June 2026, with operating revenue climbing 13% to US$7.446 billion and net profit after tax (NPAT) surging 27% to US$1.672 billion. Underlying NPAT, which excludes certain non-recurring items, rose 7% to US$1.334 billion.
Production volumes stood at 478 thousand barrels of oil equivalent per day (Mboe/d), totaling 86.5 million barrels of oil equivalent (MMboe), despite a 13% decline from the prior year largely due to planned maintenance and cyclone disruptions. Unit production costs, including major turnarounds, were maintained at a competitive US$8.8 per boe.
Key Projects Progressing on Schedule and Budget
The Scarborough Energy Project, Woodside’s flagship LNG development off Western Australia, reached 98% completion by mid-2026 and remains on track for its first LNG cargo in the fourth quarter. The floating production unit achieved ready-for-start-up status and first gas shortly after the reporting period. Pluto LNG’s planned turnaround was executed safely, on schedule, and within budget, including integration activities critical to Scarborough’s start-up.
Offshore Mexico’s Trion oil development advanced to 64% completion, with drilling of the initial subsea wells ahead of schedule and first oil targeted for 2028. Meanwhile, the Louisiana LNG export terminal in the US Gulf Coast was 28% complete, with foundational infrastructure progressing despite supply chain risks linked to Middle East tensions. First LNG is targeted for 2029.
Operational Excellence and Asset Reliability
Woodside maintained high asset reliability across its portfolio. Operated LNG facilities achieved 98.7% reliability, with the Sangomar field offshore Senegal delivering 99.5% reliability and production exceeding expectations. The company safely completed Pluto LNG’s turnaround with zero lost-time injuries over 400,000 work hours, underscoring its commitment to safety amid complex operations.
In July, Woodside assumed operatorship of the Gippsland Basin assets, enhancing its footprint in eastern Australia’s domestic gas market. The company also exercised a pre-emption right to increase its stake in the Browse Joint Venture to 41.27%, reinforcing its position in key LNG resource developments.
Capital Management and Dividend Policy
Woodside declared a fully franked interim dividend of 57 US cents per share, representing an 80% payout ratio of underlying NPAT and an annualised yield of 5.9%. The dividend reinvestment plan remains suspended. The company generated operating cash flow of US$3.013 billion and free cash flow of US$352 million, boosted by capital contributions from partners Stonepeak and Williams for Louisiana LNG.
Liquidity remained strong at US$8.189 billion, supporting ongoing capital commitments and shareholder returns. Gearing edged slightly above the target range at 20.6%, influenced by new lease liabilities and hedge settlements, but is expected to normalise as investment cycles progress.
Sustainability and Portfolio Optimisation
Woodside continued advancing its sustainability agenda, including enhanced methane emissions reporting aligned with the Oil and Gas Methane Partnership 2.0, and launched biodiversity projects in Western Australia and Louisiana. The company reported zero moderate environmental spills and maintained a strong safety record with no fatalities and only one high-consequence injury during the period.
Portfolio rationalisation included recognition of impairment losses totaling US$178 million related to the Calypso and H2OK projects, with a divestment agreement for Calypso to bp expected to complete by year-end. Woodside also announced a strategic review of Beaumont New Ammonia and reaffirmed a $350 million annual cost savings target from 2028.
Looking Ahead
With major projects nearing completion and a resilient operating base, Woodside is positioned to capitalise on sustained LNG demand and commodity price strength, despite ongoing geopolitical uncertainties impacting global energy markets. The company’s disciplined execution and capital management will be critical as it navigates the transition to a lower-carbon portfolio and pursues growth opportunities in new energy products and services.
Investors will be watching the completion of the Chevron asset swap, the finalisation of the Calypso divestment, and the commissioning milestones at Scarborough and Louisiana LNG as key near-term catalysts.
Bottom Line?
Woodside’s strong H1 2026 results and project progress reinforce its operational resilience and growth trajectory, but execution risks and market volatility remain key factors to monitor.
Questions in the middle?
- How will Woodside manage gearing back within target amid peak capital expenditure?
- What impact will the Calypso divestment and Browse stake increase have on portfolio value?
- Can Woodside sustain cost savings and operational reliability as major projects ramp up?