Woodside Energy reported a 14% decline in half-year profit, impacted by lower oil prices, yet the results and its dividend surpassed market expectations, leading to a 4% increase in shares. CEO Meg O’Neill noted significant interest in the proposed equity sale for the Driftwood liquefied natural gas (LNG) export project, which Woodside will acquire through its $1.2 billion purchase of U.S. developer Tellurian.
O’Neill indicated that Woodside is exploring partnerships with companies that can provide upstream gas supply, as well as those interested in offtake agreements or infrastructure elements of the project. The company aims to secure firm commitments on equity sales before making a final investment decision in the first quarter of 2025.
Additionally, Woodside plans to take one of its five LNG trains offline at the Karratha Gas Plant between late 2024 and mid-2025 due to declining production from the aging field. For the six months ending June 30, Woodside posted an underlying net profit after tax of $1.63 billion, exceeding the Visible Alpha consensus estimate of $1.38 billion.
Despite the profit drop, the company declared an interim dividend of 69 U.S. cents per share, down from 80 cents a year earlier, representing 80% of its underlying net profit after tax. The market had anticipated a payout of 55 cents.