Woodside Reports $1.3B NPAT, 548 Mboe/d Production, and 53 US cps Dividend
Woodside Energy Group reported robust first-half results in 2025, with production reaching 548 Mboe/d and a net profit after tax of $1.3 billion, while progressing key LNG projects and declaring a fully franked interim dividend.
- Production of 548 Mboe/d with reduced unit costs to $7.7/boe
- Net profit after tax of $1,316 million and underlying NPAT of $1,247 million
- Final investment decision and 40% sell-down completed for Louisiana LNG Project
- Strong progress on Scarborough, Trion, and Beaumont New Ammonia projects
- On track to meet 2025 greenhouse gas emissions reduction target
Strong Operational and Financial Performance
Woodside Energy Group Ltd delivered a solid first half in 2025, producing 548 thousand barrels of oil equivalent per day (Mboe/d), totaling 99.2 million barrels of oil equivalent (MMboe). This production was achieved alongside a reduction in unit production costs to $7.7 per barrel of oil equivalent, underscoring the company’s operational efficiency. Financially, Woodside reported a net profit after tax (NPAT) of $1,316 million, with an underlying NPAT of $1,247 million, despite a 24% decrease compared to the same period last year. Operating revenue increased by 10% year-on-year to $6.59 billion.
Reflecting confidence in its financial position, the board declared a fully franked interim dividend of 53 US cents per share, representing an 80% payout ratio of underlying NPAT and an annualized yield of 6.9%. CEO Meg O’Neill highlighted the company’s ability to reward shareholders today while maintaining balance sheet strength to support major growth projects.
Progress on Major Growth Projects
Woodside made significant strides on several key projects. The Scarborough Energy Project in Western Australia reached 86% completion, targeting its first LNG cargo in the second half of 2026. The Trion Project offshore Mexico advanced to 35% completion, with first oil expected in 2028. The Beaumont New Ammonia Project in Texas is 95% complete, aiming for first ammonia production in late 2025 and lower-carbon ammonia by 2026.
April 2025 marked a milestone with the final investment decision (FID) for the Louisiana LNG Project, a fully permitted development near Lake Charles, Louisiana. Woodside completed the sell-down of a 40% interest in Louisiana LNG Infrastructure LLC to Stonepeak for $5.7 billion, with Stonepeak committing to fund 75% of the project’s capital expenditure over 2025 and 2026. This partnership underscores Woodside’s strategy to position itself as a global LNG powerhouse, serving both Pacific and Atlantic markets.
Operational Excellence and Safety
Woodside’s operational performance remained strong, with the Senegal Sangomar project producing 100 thousand barrels per day at 98.6% reliability, marking its first year since first oil in June 2024. The company recorded over one million work hours at Sangomar without any recordable injuries, reflecting a strong safety culture. The North West Shelf Project and other LNG plants maintained high reliability, with combined LNG plant reliability at 96%. Woodside also contributed approximately 8% of EBIT from its marketing and trading capabilities, showcasing the value of its integrated portfolio.
Financial Discipline and Capital Management
Woodside demonstrated disciplined capital management, maintaining liquidity of $8.43 billion and gearing at 19.5%, within its target range. The company issued $3.5 billion in senior unsecured bonds in the US market, with strong investor demand reflected in an oversubscribed book. Operating cash flow reached $3.34 billion, supporting positive free cash flow of $272 million, which included proceeds from the Louisiana LNG sell-down.
However, the company recognized a $143 million impairment loss on the H2OK hydrogen project following its decision to exit, reflecting challenges in the lower-carbon hydrogen sector. Woodside continues to focus on cost management and prioritizing sanctioned projects over exploratory spending.
Sustainability and Future Outlook
Woodside remains on track to meet its 15% net equity Scope 1 and 2 greenhouse gas emissions reduction target by 2025. Initiatives such as carbon capture and storage projects, biodiversity programs, and new energy ventures like the Woodside Solar Project and hydrogen refuelling station in Perth illustrate the company’s commitment to sustainability. The recent agreement to assume operatorship of the Bass Strait assets from ExxonMobil enhances Woodside’s operational footprint and development flexibility in Australia.
Looking ahead, Woodside’s strong asset base, project pipeline, and financial discipline position it well to navigate the evolving energy landscape while delivering shareholder value.
Bottom Line?
Woodside’s H1 2025 results reinforce its dual focus on operational excellence and strategic growth, setting the stage for critical project milestones and sustainability targets in the coming years.
Questions in the middle?
- How will Woodside manage capital allocation amid evolving LNG market dynamics and new energy investments?
- What are the implications of the H2OK project exit for Woodside’s hydrogen strategy and broader new energy ambitions?
- How might regulatory approvals and partner sell-down negotiations impact the timeline and financing of the Louisiana LNG Project?
