Woodside Energy Group Ltd (ASX:WDS) Reports Record Production
Operational Highlights
Woodside Energy Group Ltd (ASX:WDS) has reported a record full-year production of 194 million barrels of oil equivalent (MMboe), achieving 530 Mboe/day, driven by outstanding performance at the Sangomar field. The company produced 75 Mboe/day during the fourth quarter, contributing to a quarterly total of 51.4 MMboe, slightly down from 53.1 MMboe in the previous quarter due to seasonal demand fluctuations and an unplanned shutdown at the Pluto facility.
Financial Performance
The quarterly revenue for Q4 was $3,470 million, down 6% from Q3 2024. This was primarily attributed to lower seasonal demand at Bass Strait, although higher revenues from third-party liquefied natural gas (LNG) trades provided some offset. Woodside realised a 31% premium on its LNG sales linked to gas hub pricing.
Project Progress
The Scarborough Energy project is progressing well, reaching 78% completion, with final modules for Pluto Train 2 delivered. This project remains on target for its first LNG cargo in 2026. The Trion project is also advancing, having achieved 20% completion, with construction for the floating production unit initiated.
Additionally, Woodside continues to simplify its Australian portfolio, having entered into an asset swap with Chevron, exchanging Wheatstone interests for increased participation in the North West Shelf project. The company also completed the sale of a 15.1% interest in the Scarborough Joint Venture to JERA for approximately $1.4 billion.
Environmental and Community Commitment
Woodside remains focused on sustainability, reporting a 14% reduction in net equity Scope 1 and 2 emissions in 2024. The company is dedicated to decarbonising its operations and continues to support local communities, awarding a significant construction contract to a locally based company for the Scarborough project.
Future Outlook
For 2025, Woodside has set a production guidance of 186 – 196 MMboe and projected capital expenditure of $4.5 – 5.0 billion. This outlook reflects ongoing operational efforts and strategy execution to enhance shareholder value.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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