Woodside’s profit climbs in H1

Australian LNG producer Woodside reported a rise in its first-half profit and production.

The Perth-based firm, which is now a top 10 global independent energy company by hydrocarbon production after the completion of the merger with BHP’s oil and gas business, reported record first-half net profit after tax (NPAT) of $1.74 billion.

This marks a 6 percent rise compared to $1.64 billion in the same period last year.

Underlying net profit after tax reached about $1.89 billion, a rise of 4 percent compares to the last year, reflecting a full period of results with Woodside’s expanded operations portfolio.

Woodside said it had delivered record H1 production of 91.3 MMboe due to contribution from former BHPP assets.

The company declared an interim dividend of 80 US cents per share, representing a half-year annualized dividend yield of 6.9 percent.

Woodside’s CEO Meg O’Neill said the company’s “strong financial performance and our focus on disciplined capital management has enabled us to maintain our interim dividend payout ratio through the cycle.”

“Production for the first half was a record at 91.3 million barrels of oil equivalent. The Pluto LNG facility delivered an outstanding 99.9 percent reliability rate in the five months prior to the planned maintenance turnaround, which was completed on schedule,” she said.

Woodside’s Scarborough and Pluto LNG Train 2 project, worth about $12 billion, is now 38 percent complete.

In November 2021, Woodside took a final investment decision on the Scarborough and Pluto LNG Train 2 developments.

The projects also include new domestic gas facilities and modifications to the first train.

Woodside’s Pluto LNG terminal currently has one train with a capacity of 4.9 mtpa and Woodside and US engineer Bechtel started building the second Pluto train last year.

Pluto Train 2 will get gas from the Scarborough gas field, located about 375 km off the coast of Western Australia, through a new trunkline long about 430 km.

Woodside recently entered into a deal to sell a 10 percent stake in its Scarborough project to a joint venture consisting of Japan’s Sojitz and Sumitomo.

O’Neill said two “significant milestones” were achieved for Scarborough subsequent to the end of the first half, with Nopsema approving the environmental Ppan for the marine seismic survey and the announcement of the sale of a 10 percent interest in the offshore joint venture to LNG Japan.

“The new strategic relationship with LNG Japan also includes the potential for LNG offtake and collaboration on opportunities in new energy,” she added.

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