Woodside Energy Group (WDS) H1 2024 earnings summary

Executive summary

• Net profit after tax for H1 2024 was $1.9 billion, up 11% year-over-year, with a fully franked interim dividend of $0.69 per share at the top end of the payout range.

• Achieved major project milestones, including first oil from Sangomar at nameplate capacity and Scarborough project reaching 67% completion, on track for first LNG cargo in 2026.

• Announced acquisitions of Tellurian's Driftwood LNG and OCI's Clean Ammonia project, positioning for long-term growth and energy transition.

• Maintained strong operational performance with unit production cost reduced by 6% to $8.3/boe, despite inflationary pressures.

• Introduced new Scope 3 emissions abatement target and joined the UN Oil and Gas Methane Partnership.

Financial highlights

• Operating revenue was $5,988 million, down 19% from H1 2023; EBITDA was $4,371 million, down 11% year-over-year.

• Free cash flow surged 136% to $740 million, supported by the Scarborough JV sell-down.

• Interim dividend of $0.69 per share, fully franked, with an 80% payout ratio and a 7.3% annualized yield.

• Gearing at 13.3%, within the 10–20% target range, but expected to rise temporarily due to acquisitions.

• Liquidity increased to $8.5 billion, up 13% year-over-year; net debt at $5.4 billion.

Outlook and guidance

• Full-year 2024 production guidance remains at 185–195 MMboe, supported by 98% LNG reliability and over 89 million barrels of oil equivalent produced in the half.

• Capital expenditure guidance unchanged at $5.0–5.5 billion for 2024.

• Continued hedging of approximately 30 million barrels of oil expected in 2025, with 2026 hedging to be determined.

• No immediate plans for further M&A; focus remains on delivering value from recent acquisitions and organic growth projects.

• Acquisitions of Tellurian and OCI Clean Ammonia Project expected to close in H2/Q4 2024, supporting long-term portfolio diversification.