Woodside reported net profit after tax (NPAT) of $1.94 billion for the half year. Underlying NPAT was $1.63 billion, a 14% decrease from the same period in 2023. The company generated operating cash flow of $2.4 billion and positive free cash flow of $740 million. Woodside had a strong liquidity position at $8.48 billion.
The Company announced a fully franked interim dividend of $0.69 per share, representing an annual dividend yield of 7.3%. This payout ratio is approximately 80% of underlying NPAT, at the upper end of the Company’s payout range.
In the first half of 2024, Woodside delivered total production of 89.3 million barrels of oil equivalent (MMboe) at a daily output of 491,000 barrels of oil equivalent (Mboe/d). The Company successfully reduced its unit production costs from $8.8/boe in the first half of 2023 to $8.3/boe.
Meg O’Neill, CEO of Woodside, highlighted the company’s strong performance and strategic progress: “The results demonstrate that Woodside’s strong core business continues to deliver strong dividends to shareholders while laying the foundation for future success.”
O’Neill also highlighted the company’s commitment to safety and innovation: “As we now officially celebrate our 70th anniversary as an Australian company, I am proud that Woodside faces the future with the same spirit of innovation and determination that our founders showed.”
An important milestone was reached with first oil production at the Sangomar project in June 2024. The project, Senegal’s first offshore oil production, reached its design capacity shortly after the reporting period with a gross production rate of 100,000 barrels per day.
Woodside also made progress on its Scarborough Energy Project, which was 67% complete at the end of the first half of 2024. The project remains on schedule to deliver its first LNG cargo in 2026.
The Company has made significant progress in its business strategy, including completing the sale of a 10% non-operating interest in the Scarborough Joint Venture (SJV) to LNG Japan for $910 million. In addition, an agreement was signed with JERA to sell an additional 15.1% interest in the SJV for an estimated total consideration of $1.4 billion.
To expand its LNG portfolio, Woodside has agreed to acquire Tellurian, including the Driftwood LNG development on the U.S. Gulf Coast, for approximately $900 million. The company also entered into an agreement to acquire OCI’s Clean Ammonia Project in Beaumont, Texas, for $2.35 billion, positioning itself as a leader in the emerging lower-carbon ammonia industry.
