Woodside Energy has announced half year financial highlights showing net profit after tax of A$1.937 billion (US$1.3 million) and underlying net profit after tax of A$1.632 billion (US$1.1 million).
Operational highlights include 89.3 MMboe (491 Mboe/d) of supply during the period and a reduction in unit production costs to A$8.3/boe (A$5.6/boe) (A$8.8/boe in 1H23) despite an inflationary environment.
Woodside Energy CEO Meg O'Neill said the results demonstrate that Woodside's high performing underlying business is laying the foundations for future success whilst continuing to pay strong dividends to shareholders.
“We have maintained a high reliability of 97.9% across our operated LNG assets and continue to effectively manage costs in an inflationary environment.
“In the first half of 2024, we achieved a key element of our strategy, achieving maiden production from Sangomar, Senegal's first offshore oil project. Sangomar's production ramp-up is progressing well, achieving peak total production of 100,000 barrels per day over the period.”
The company expects to achieve first crude oil production from the Sangomar Project in June 2024, after which it will achieve rated production capacity with total production of 100,000 barrels per day.
Woodside has also taken final investment decisions (FID) on Lambert West, Xena 3 and the Atlantis Drill Centre 1 Expansion (DC1X).
The Scarborough Energy Project was 67% complete as of the end of the first half of 2024, with the first LNG cargo expected to be shipped in 2026. An agreement has been signed with JERA to sell a 15.1% non-operating interest in the Scarborough Joint Venture (SJV). The total sale proceeds are expected to be A$1.4 billion.
Work on the Scarborough Floating Production Unit has reached a major milestone with the completion of the superstructure.
Site work on Pluto Train 2 continues with 29 of the 51 modules delivered and 25 modules installed.
Woodside sold a 10% non-operating interest in the SJV to LNG Japan for A$910 million and entered into sales and purchase agreements with Korea Gas Corporation (KOGAS) and Taiwan's China Petroleum Corporation (CPC) for long-term supplies of LNG to Korea and Taiwan, respectively.
The company continues to make progress on engineering, procurement and contracting for the Trion project.
Following this period, Woodside entered into agreements to acquire Tellurian, including the Driftwood LNG development opportunity on the US Gulf Coast for approximately A$900 million in all cash, and also entered into agreements to acquire OCI's clean ammonia project in Beaumont, Texas for an all-cash transaction of approximately A$2.35 billion.
“For our new energy business, we have received all key environmental approvals for Hydrogen Refueller @H2Perth, which is targeted to supply industrial customers in Western Australia in 2025,” Mr O'Neill said. “We are also progressing several carbon capture and storage (CCS) opportunities, including signing a Memorandum of Understanding between the Angel CCS joint venture and Yara Pilbara Fertilisers to study the use of the technology.”
“We continue to execute on our strategy to thrive through the energy transition while maintaining disciplined capital management. Our agreement to acquire OCI's clean ammonia project in Texas positions Woodside to be a pioneer in the emerging low-carbon ammonia industry and contributes significantly to achieving our Scope 3 targets.”
“As we celebrate our 70th anniversary as an Australian company, I am proud that Woodside is looking to the future with the same spirit of innovation and determination demonstrated by our founders.”