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Woodside Energy (WDS) - 2024 Q2 - Quarterly Report
2024-08-30 20:07
Financial Performance - Net profit after tax for H1 2024 was $1,937 million, with underlying net profit after tax at $1,632 million, down 14% compared to H1 2023[11][15] - Operating revenue decreased by 19% to $5,988 million in H1 2024 compared to H1 2023[19] - Net profit after tax (NPAT) increased by 11% to $1,937 million in H1 2024[19] - Free cash flow surged by 136% to $740 million in H1 2024[19] - The company achieved a fully franked interim dividend of 69 US cents per share, representing a half-year annualised dividend yield of 7.3%[11] - Woodside declared a fully franked interim dividend of 69 US cps, totaling $1,310 million[24] - Cash flow from operating activities was $2,393 million in H1 2024[25] - Woodside's gearing increased to 13.3% in H1 2024, within the target range of 10-20%[26] - Woodside hedged 29.3 MMboe of 2024 production at an average price of $75.6 per barrel[28] - Profit after tax for the half-year ended 30 June 2024 was $1,972 million, up from $1,766 million in the same period in 2023[82] - Basic earnings per share for the half-year ended 30 June 2024 were 102.2 US cents, compared to 91.7 US cents in the same period in 2023[82] - Total comprehensive income for the half-year ended 30 June 2024 was $1,838 million, compared to $2,322 million in the same period in 2023[83] - The Group's gross profit for the half-year ended 30 June 2024 was $2,716 million, down from $3,528 million in the same period in 2023[82] - The Group's finance costs for the half-year ended 30 June 2024 were $147 million, compared to $137 million in the same period in 2023[82] - Cash and cash equivalents increased to $1,979 million in June 2024 from $1,740 million in December 2023, reflecting a 13.7% growth[85] - Total current assets rose to $6,052 million in June 2024, up from $5,118 million in December 2023, marking an 18.2% increase[85] - Net cash from operating activities for the half-year ended June 2024 was $2,393 million, compared to $2,951 million in the same period in 2023, a decrease of 18.9%[86] - Capital and exploration expenditure for the half-year ended June 2024 was $2,418 million, slightly lower than the $2,457 million spent in the same period in 2023[86] - Dividends paid in the half-year ended June 2024 amounted to $1,139 million, a significant reduction from $2,738 million in the same period in 2023, reflecting a 58.4% decrease[86] - Total liabilities decreased to $19,813 million in June 2024 from $20,191 million in December 2023, a 1.9% reduction[85] - Retained earnings surged to $1,408 million in June 2024 from $186 million in December 2023, indicating a substantial 657% increase[85] - Net assets grew to $35,829 million in June 2024, up from $35,170 million in December 2023, a 1.9% increase[85] - Income tax and PRRT paid in the half-year ended June 2024 was $1,700 million, down from $2,233 million in the same period in 2023, a 23.9% decrease[86] - Proceeds from disposal of non-current assets in the half-year ended June 2024 were $920 million, compared to $3 million in the same period in 2023[86] - Total equity increased to $35.829 billion as of 30 June 2024, up from $35.170 billion at the start of the year[88] - Profit for the period was $1.972 billion, with $1.937 billion attributable to equity holders of the parent[88] - Dividends paid during the period amounted to $1.186 billion, including $1.139 billion to equity holders and $47 million to non-controlling interests[88] - Retained earnings grew to $1.408 billion as of 30 June 2024, compared to $186 million at the start of the year[88] - Other comprehensive loss for the period was $134 million, primarily driven by a $108 million loss in the hedging reserve[88] - Employee share plan purchases and redemptions resulted in a net decrease of $16 million in reserved shares[88] - Share-based payments (net of tax) contributed $32 million to the employee benefits reserve[88] - Consolidated revenue for the half-year ended 30 June 2024 was $5,988 million, a decrease from $7,400 million in the same period in 2023[99] - Liquified natural gas (LNG) revenue decreased to $3,007 million in 2024 from $4,679 million in 2023[99] - Crude oil and condensate revenue increased to $2,091 million in 2024 from $1,758 million in 2023[99] - Gross profit for the half-year ended 30 June 2024 was $2,716 million, down from $3,528 million in 2023[99] - Profit before tax and net finance costs was $2,362 million in 2024, compared to $2,791 million in 2023[99] - Finance costs for the half-year ended 30 June 2024 were $147 million, up from $137 million in 2023[100] - Dividends paid during the financial period were $1,139 million in 2024, down from $2,734 million in 2023[101] - A dividend of $1,310 million was declared subsequent to the reporting period for 2024, compared to $1,519 million in 2023[101] - Basic earnings per share increased to 102.2 US cents in 2024 from 91.7 US cents in 2023[102] - Diluted earnings per share increased to 101.4 US cents in 2024 from 91.1 US cents in 2023[102] - Profit before tax for the half-year ended 30 June 2024 was $2,310 million, compared to $2,828 million in 2023[103] - The global effective income tax rate decreased from 25.6% to 6.9% due to the recognition of a net deferred tax asset of $305 million and a net tax benefit of $91 million from the Scarborough Joint Venture sale[103] - The Group recognised a $124 million current tax payable due to the new PRRT deductions cap legislation impacting the Pluto and Wheatstone projects[104] - Exploration and evaluation assets increased by $77 million to $714 million as of 30 June 2024, with additions of $52 million in the Americas and $14 million in Africa[104] - Oil and gas properties carrying amount decreased by $666 million to $40,125 million as of 30 June 2024, with $2,447 million added to projects in development[105] - Capital expenditure commitments contracted but not provided for in the financial statements decreased to $3,017 million as of 30 June 2024 from $4,245 million at 31 December 2023[105] - Goodwill decreased by $298 million to $3,697 million as of 30 June 2024 due to the transfer of assets held for sale related to the Scarborough Joint Venture[106] - The Group reclassified $1,378 million of assets and $119 million of liabilities to held for sale related to the 15.1% interest in the Scarborough Joint Venture[107] - The sale of the 15.1% interest in the Scarborough Joint Venture to JERA is expected to generate proceeds exceeding the net carrying value, with a purchase price of $740 million[107] - After the Scarborough Joint Venture sale, the Group's participating interest will reduce from 90% to 74.9%[107] - The Group sold a 10% non-operating participating interest in the Scarborough Joint Venture to LNG Japan for $910 million, reducing its interest from 100% to 90%[110] - The Group recognized a pre-tax gain of $121 million from the sale of the Scarborough Joint Venture interest for the half-year ended 30 June 2024[110] - The Group reclassified $823 million of assets and $94 million of liabilities related to the Scarborough Joint Venture as held for sale as of 31 December 2023[110] - The Group completed a $500 million drawdown from bilateral loan facilities and entered into a $1,000 million loan facility with JBIC and a $450 million syndicated term loan facility during the period[113] - The Group had $6,500 million of available undrawn facilities as of 30 June 2024, with $1,550 million of undrawn facilities cancelled subsequent to the period[113] - The Group hedged 29.3 MMboe of 2024 oil production at an average price of $75.6 per barrel, with 49% delivered as of 30 June 2024[118] - The Group hedged 15 MMboe of 2025 oil production at an average price of $81.2 per barrel[118] - The Group's embedded commodity derivative related to the Perdaman GSPA contract had a net liability of $188 million as of 30 June 2024, with an unrealised loss of $153 million recognised for the six-month period[120] - The Group's total segment assets were $55,642 million as of 30 June 2024, with Australia accounting for $30,895 million and International for $18,083 million[115] - The Group's total segment liabilities were $19,813 million as of 30 June 2024, with Australia accounting for $7,312 million and Corporate/Other for $9,177 million[115] - The embedded derivative is most sensitive to changes in discount rates and pricing, with a 10% increase in Urea sales price resulting in a $137 million gain, while a 10% decrease results in a $137 million loss. A 1.5% increase in discount rate leads to a $186 million loss, and a 1.5% decrease results in a $230 million gain[124] - Contingent liabilities as of 30 June 2024 are $229 million, down from $262 million as of 31 December 2023[125] - The Group has contingent assets of $56 million as of 30 June 2024, up from $47 million as of 31 December 2023[126] - The Group paid $1,700 million in income tax and PRRT for the half-year ended 30 June 2024[130] - The Group entered into a definitive agreement to acquire Tellurian Inc for approximately $900 million, with a loan facility of up to $230 million provided to Tellurian[131] - Woodside agreed to acquire 100% of OCI Clean Ammonia Holding B.V. for approximately $2.35 billion, with the transaction expected to complete in the second half of 2024[133] - The interim dividend for the current period is 69 US cents per share, down from 80 US cents per share in the previous corresponding period[133] - The Group's ownership interest in Blue Ocean Seismic Services Limited decreased to 16.17% from 28.50% in the previous corresponding period[136] - Net profit after tax for H1 2024 was $1,972 million, up from $1,766 million in H1 2023[157] - Capital expenditure for H1 2024 was $2,365 million, down from $2,769 million in H1 2023[157] - Free cash flow for H1 2024 was $740 million, up from $314 million in H1 2023[157] - Liquidity as of June 2024 was $8,479 million, including $1,979 million in cash and cash equivalents and $6,500 million in available undrawn facilities[157] - Net tangible assets per ordinary security increased to $16.42 from $16.40 year-over-year[158] - Net debt rose to $5,388 million from $3,220 million, reflecting a significant increase in interest-bearing liabilities[158] - Return on equity improved to 5.5% from 4.8% year-over-year[159] - Revenue from the sale of hydrocarbons (excluding marketing segment) decreased to $5,376 million from $6,486 million[160] - Cash margin (excluding marketing segment) declined to $4,341 million from $5,210 million, with cash margin percentage slightly increasing to 81% from 80%[160] - Production costs (excluding marketing segment) decreased to $745 million from $807 million, with production cost margin improving to 14% from 13%[160] - Total other cash costs (excluding marketing segment) decreased to $290 million from $469 million[160] - Net profit after tax (NPAT) attributable to equity holders of the parent is a key financial metric, excluding non-controlling interests from the Group's operations[162] - Gross margin is calculated as gross profit divided by operating revenue, excluding income tax, PRRT, net finance costs, and other expenses[162] - Unit production cost (UPC) is calculated as production costs ($ million) divided by production volume (MMboe)[164] - Production cost margin is calculated as production costs divided by revenue from the sale of hydrocarbons, excluding the marketing segment[163] Production and Operations - H1 2024 production was 89.3 MMboe (491 Mboe/d), with unit production cost reduced to $8.3/boe from $8.8/boe in H1 2023[12] - The Scarborough Energy Project was 67% complete at the end of H1 2024, with first LNG cargo expected in 2026[13] - Sangomar Project achieved first oil in June 2024, with peak gross production rate of 100,000 barrels per day achieved post-period[12][16] - Woodside signed agreements to acquire Tellurian for approximately $900 million and OCI's Clean Ammonia Project for approximately $2,350 million[14] - Woodside completed the sale of a 10% non-operated interest in the Scarborough Joint Venture to LNG Japan for $910 million and signed an agreement to sell a 15.1% interest to JERA for $1,400 million[13][14] - Woodside signed long-term LNG supply agreements with Korea Gas Corporation and CPC Corporation, Taiwan[14][17] - Gas production volumes decreased by 4% to 60.9 MMboe in H1 2024[19] - Liquids production volumes increased by 2% to 28.4 MMboe in H1 2024[19] - Pluto LNG production increased by 15% to 26.9 MMboe in H1 2024[30] - Woodside's share of Wheatstone production in H1 2024 was 5.8 MMboe, a 12% decrease compared to H1 2023 due to unplanned outages[35] - Woodside's share of Bass Strait production in H1 2024 was 8.5 MMboe, a 22% decrease from H1 2023 due to lower domestic gas demand and field decline[36] - Woodside's share of production from FPSO assets in H1 2024 was 3.0 MMboe, a 3% decrease from H1 2023 due to planned maintenance and a subsea leak[38] - Woodside's share of production from Macedon in H1 2024 was 3.9 MMboe, down from 4.1 MMboe in H1 2023, supplying 11% of Western Australia's domestic gas market[39] - Woodside's share of production from Sangomar in H1 2024 was 0.5 MMboe, with peak gross rate of 100,000 barrels per day achieved post-period[39] - Woodside's share of production from Shenzi in H1 2024 was 5.2 MMboe, a 7% decrease compared to H1 2023 due to natural field decline and maintenance[41] - Woodside's share of production from Mad Dog in H1 2024 was 6.0 MMboe, a 122% increase compared to H1 2023 due to full production from Mad Dog Phase 2[43] - Woodside's marketing segment profit before tax and net finance costs in H1 2024 was $218 million, driven by optimization and third-party trading activities[45] - Woodside signed SPAs with KOGAS and CPC for long-term LNG supply, totaling 6.5 million tonnes over 10 years, with potential for an additional 8.4 million tonnes[45] - The Scarborough Energy Project was 67% complete at the end of H1 2024, with 29 modules delivered to site and 25 set in position[49] - Woodside spent approximately $325 million on decommissioning activities in H1 2024, with over 95% of the Nganhurra riser turret mooring (RTM) recycled or reused[55] - The Calypso project, located 220 km off Trinidad, is in pre-FEED engineering studies, with Woodside holding a 70% participating interest[56] - The Browse development incorporates a carbon capture and storage solution designed to sequester the majority of reservoir CO2, with Woodside holding a 30.6% interest[57] - Woodside acquired 18 leases in the US Gulf of Mexico during Lease Sale 261 and participated in the Corvus well, which did not encounter commercial hydrocarbons[60] - Woodside entered into a binding agreement to acquire 100% of OCI Clean Ammonia Holding B.V., targeting first ammonia production from 2025 and lower carbon ammonia from 2026[61] - The H2OK project in Ardmore, Oklahoma, is expected to produce up to 60 tonnes per day of liquid hydrogen[61] - Woodside began planting activities on 4,900 hectares of land as part of its Native Reforestation Project, with over 3.2 million seedlings forecasted for the full year[68] - Woodside's Climate Transition Action Plan received a 58.36% vote against
Woodside Energy: Good H1, Let's See On New Projects Execution
Seeking Alpha· 2024-08-28 12:06
Core Viewpoint - Woodside Energy Group reported a mixed set of H1 2024 earnings, with total gas and liquids production down only 2% year-on-year, despite a 15% decrease in earnings before tax and interest due to lower commodity prices [8][10]. Segment Performance - Woodside operates in three segments: Australia, International, and Marketing, with significant production from Pluto LNG, North West Shelf Project, and Bass Strait [2][3][4]. - Pluto LNG production increased by 15% to 26.9 million barrels of oil equivalent (MMboe) in H1 2024 compared to H1 2023 [2]. - North West Shelf Project production decreased by 14% to 19.6 MMboe due to planned maintenance and natural field decline [3]. - Bass Strait production fell by 22% to 8.5 MMboe, attributed to lower domestic gas demand and maintenance [4]. - Internationally, production from Mad Dog increased by 122% to 6.0 MMboe, while Atlantis production decreased by 19% to 5.1 MMboe [5][6]. Financial Performance - Total revenue from sales was $4.055 billion in H1 2024, down from $7.309 billion in H1 2023 [7]. - Unit production costs were reduced to $8.3 per barrel of oil equivalent, down from $8.8 in H1 2023 [9]. - The marketing segment generated a profit before tax of $218 million, reflecting strong LNG sales and optimization activities [9]. Capacity Growth and Investments - Woodside is investing heavily in LNG projects, with Scarborough and Trion projects expected to drive future growth [10][11]. - The Scarborough project is 67% complete and on track for first LNG cargo in 2026, with development costs rising to $12.5 billion [10]. - The Beaumont Clean Ammonia Project aims to capitalize on the lower-carbon ammonia market, with a capacity to abate 3.2 million tonnes of CO2 per annum [12]. Strategic Outlook - The company is focusing on geographical diversification and energy transition opportunities, including hydrogen and ammonia [10][14]. - Woodside's strategy includes building a high-quality LNG portfolio while navigating high capital expenditures and maintaining an investment-grade credit rating [14].
Woodside Energy (WDS) - 2024 Q2 - Earnings Call Transcript
2024-08-27 06:29
Financial Data and Key Metrics Changes - The company reported a net profit after tax of $1.9 billion, translating into strong earnings per share and a healthy interim dividend of $0.69 per share, at the top end of the payout ratio range [4][3] - Unit production costs were reduced by 6% to $8.30 per barrel, despite inflationary pressures [4][39] - Cash flow generation for the first half of 2024 was strong, delivering a cash margin above 80%, with positive free cash flow of $740 million [20][52] Business Line Data and Key Metrics Changes - The Sangomar project achieved a nameplate capacity of 100,000 barrels per day, with all 24 wells drilled and completed [11] - The Scarborough Energy project was reported to be 67% complete, on track for first LNG cargo in 2026 [11] - The company is progressing with the Trion project, expecting first oil in 2028 [12] Market Data and Key Metrics Changes - The global demand for reliable, affordable, and lower carbon energy is expected to continue growing, with significant opportunities for coal to gas switching in key markets [6][8] - The Asia Pacific region accounts for more than 80% of global coal use, indicating a sustained opportunity for LNG [9] Company Strategy and Development Direction - The company aims to thrive through the energy transition by focusing on providing energy, creating shareholder value, and conducting business sustainably [3] - Recent acquisitions, including Tellurian and OCI's Clean Ammonia Project, position the company as a leading independent LNG player with significant future cash generation potential [13][15] - The company is committed to achieving its Scope 1 and 2 emissions reduction targets and has set a new abatement target for 2030 [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver reliable, affordable, and lower carbon energy, emphasizing the importance of LNG in the energy transition [4][6] - The company acknowledged the challenges in the operating environment but remains focused on maintaining strong operational performance and cash flow generation [20][52] Other Important Information - The company paid AUD2.7 billion in taxes and royalties to Australian governments during the half, demonstrating significant contributions to the economy [23] - The company is actively involved in decommissioning campaigns and has a significant decommissioning campaign underway this year [64] Q&A Session Summary Question: Breakdown of $1.7 billion tax payments - The CFO clarified that $1.5 billion was related to income tax and the remainder to PRRT, highlighting the company's status as one of the largest taxpayers in Australia [26] Question: Hedging strategy for 2025 and 2026 - Management confirmed the intention to continue hedging in 2025 and will assess the need for hedging in 2026 based on capital spend visibility [28][29] Question: Gearing and dividend payout sustainability - Management indicated that while gearing may exceed the target range temporarily, they remain committed to maintaining the dividend payout ratio [32][34] Question: Confidence in Scarborough project cost estimates - Management expressed high confidence in delivering the Scarborough project within the updated budget of $12.5 billion, while monitoring ongoing risks closely [46][47] Question: Outlook for cash flows and production guidance - Management reassured that the business is performing strongly and is on track to meet cash flow guidance, despite some concerns raised about production levels [52][54]
Woodside Energy (WDS) - 2024 Q2 - Earnings Call Presentation
2024-08-27 04:27
INVESTORS Marcela Louzada M: +61 456 994 243 E: investor@woodside.com MEDIA Dan Pagoda M: +61 482 675 731 E: dan.pagoda@woodside.com Woodside Energy Group Ltd ACN 004 898 962 Mia Yellagonga 11 Mount Street Perth WA 6000 Australia T +61 8 9348 4000 www.woodside.com ASX: WDS NYSE: WDS LSE: WDS Announcement Tuesday, 27 August 2024 HALF-YEAR 2024 RESULTS TELECONFERENCE AND PRESENTATION A teleconference providing an overview of the half-year 2024 results and a question-and-answer session will be hosted by Woodsi ...
Woodside Energy (WDS) - 2023 Q4 - Annual Report
2024-02-27 13:03
Financial Performance - In 2023, Woodside achieved record production of 187.2 MMboe, despite lower realized oil and gas prices impacting EBITDA, which was US$9.363 million, below the target of US$1.860 million[633][635]. - EBITDA excluding impairment for 2023 was US$9,363 million, down 16.7% from US$11,234 million in 2022[657]. - Net profit after tax (NPAT) for 2023 was US$1,660 million, a decrease of 74.5% compared to US$6,498 million in 2022[657]. - Underlying NPAT for 2023 was US$3,320 million, down 36.5% from US$5,230 million in 2022[657]. - Basic earnings per share for 2023 were 87.5 cents, a decline of 79.6% from 430 cents in 2022[657]. - The Group reported operating revenue of $13,994 million, a decrease of 16.8% from $16,817 million in 2022[786]. - The Group recognized a gross profit of $6,475 million, down 37.1% from $10,277 million in the previous year[786]. - The Group's profit after tax for the period was $1,722 million, a decline of 73.8% compared to $6,575 million in 2022[788]. - The Group's total assets decreased to $55,361 million in 2023 from $59,321 million in 2022, reflecting a reduction of 6.6%[790]. - The Group's cash and cash equivalents decreased to $1,740 million at the end of 2023, down from $6,201 million at the end of 2022[792]. - The Group's total comprehensive income for the period was $2,377 million, a decrease from $6,428 million in 2022[788]. - The total comprehensive income for the year ended 31 December 2023 was $2,377 million, which includes a profit for the period of $1,660 million[794]. - The equity holders of the company reported retained earnings of $4,118 million as of 31 December 2023, reflecting a decrease from the previous year[794]. - The company paid dividends totaling $4,335 million during the year, with a dividend reinvestment plan contributing $476 million[794]. Production and Projects - Production in 2023 reached 187.2 MMboe, an increase of 18.7% from 157.7 MMboe in 2022[657]. - The Scarborough Energy Project is on track for first LNG cargo in 2026, while first oil from the Sangomar project is targeted for mid-2024[636]. - Woodside achieved a production of 187.2 MMboe in 2023, within the guidance of 180 - 190 MMboe, driven by higher Pluto-KGP Interconnector production[716]. - The Scarborough and Pluto Train 2 projects are 55% complete, targeting first LNG cargo in 2026[716]. - The progress of the Sangomar project is reported at 93% completion, with significant advancements in various growth initiatives[731]. - The Group achieved first production from the Mad Dog Phase 2 project, producing 3.1 MMboe of hydrocarbons during the year[785]. Environmental and Safety Initiatives - Woodside secured environmental approvals for the proposed Woodside Solar Project near Karratha, advancing its new energy initiatives[636]. - The company continues to advance several carbon capture and storage (CCS) opportunities alongside its hydrogen project in Oklahoma[636]. - The health and safety performance measure recorded a total recordable injury rate (TRIR) of 1.86, above the target of 1, reflecting safety performance below expectations[716]. - Woodside's gross equity Scope 1 and 2 emissions performance was 6,190 kT CO2-e, 5% better than the target[716]. - The 2024 Corporate Scorecard includes distinct measures for safety and climate, each accounting for 15% of the total scorecard[637]. - The 2024 Corporate Scorecard includes five measures, with safety and climate metrics each accounting for 15% of the total scorecard[711][713]. Executive Remuneration and Incentives - The CEO's Fixed Annual Reward (FAR) will increase by 3% effective January 1, 2024, while the Variable Annual Reward (VAR) component remains unchanged[644]. - Senior Executive FAR increased by 5% for specific executives effective April 1, 2023, with the VAR structure remaining unchanged[645]. - The Executive Incentive Scheme (EIS) aligns executive remuneration with shareholder returns, with a target variable reward opportunity for the CEO set at 280% of Fixed Annual Reward[679]. - The Board reduced the CEO's EIS award to 99% of the target opportunity in light of the fatality, reflecting a commitment to safety[642]. - The CEO's EIS award was reduced to 99% of the target opportunity due to a fatality at the North Rankin Complex, resulting in 66% of the maximum opportunity[723]. - The CEO received a one-off cash bonus of A$200,000 in June 2023 for significant contributions to the merger of Woodside and BHP's petroleum business[724]. - The average actual and variable remuneration for Senior Executives in 2023 was 26.5% fixed reward and 73.5% variable reward[729]. - Graham Tiver, CFO, earned an EIS of 105.5% of the target opportunity, maintaining a strong balance sheet with 80% of underlying NPAT returned to shareholders[733]. - Liz Westcott, EVP Australian Operations, achieved an EIS earned percentage of 105.5% of the target opportunity, focusing on safety and operational efficiency[737]. - The total fixed annual rewards for 2023 included cash incentives of A$5,200,000 for M O'Neill, which included a one-off cash bonus for significant contributions towards the merger[742]. - The total remuneration for Key Management Personnel (KMP) in 2023 was $9,368,253, down from $9,156,300 in 2022, representing a 2.3% decline[772]. Corporate Governance and Compliance - The Board adopted a Mandatory Clawback Policy in 2023 to recoup erroneously awarded incentive-based compensation in case of accounting restatements[703]. - KPMG was engaged for A$15,000 to provide remuneration recommendations for Senior Executives, ensuring compliance with the Corporations Act 2001[767]. - The remuneration recommendations provided by KPMG were made free from undue influence from Executive KMP, ensuring the integrity of the review process[766]. - Woodside's financial statements comply with International Financial Reporting Standards (IFRS) and Australian Accounting Standards[798]. - The company’s functional currency is the US dollar, and all financial transactions are recorded in this currency[801]. Market and Strategic Outlook - The company aims to optimize value while balancing strong shareholder returns and investing in quality opportunities[661]. - Woodside's strategy includes advancing new energy products and lower carbon services to meet future demand[660]. - The company plans to continue expanding its market presence and enhancing its product offerings through ongoing research and development efforts[773]. - The company has considered climate-related risks in its financial planning, which may impact future asset valuations and pricing assumptions[810]. - Woodside's long-term price assumptions are based on scenarios that include decarbonization goals and energy security, reflecting current legislation in its operating locations[811]. - The company anticipates volatility in commodity prices due to the energy transition, with significant uncertainty regarding future pricing scenarios[817]. - The sale of a 10% non-operating interest in the Scarborough Joint Venture to LNG Japan in August 2023 supported the carrying value of the asset, indicating strong market valuation[815].
Woodside Energy (WDS) - 2023 Q4 - Annual Report
2024-02-27 12:33
Financial Performance - The company reported a significant increase in revenue, reaching $1.5 billion, representing a 20% year-over-year growth[18]. - Woodside reported a net profit after tax (NPAT) of $1.66 billion for 2023, with an underlying NPAT of $3.3 billion, reflecting strong operational performance despite lower pricing environments[28][40]. - Operating revenue for 2023 was $14 billion, driven by robust product demand[55]. - The underlying net profit after tax (NPAT) for 2023 was $3,320 million, down 37% from $5,230 million in 2022[90]. - Woodside's total full-year dividend was 140 US cents per share, representing approximately 80% of underlying NPAT[28][40]. - The final dividend for 2023 is set at 60 US cents per share, totaling approximately $1,139 million, representing about 80% of underlying NPAT for the second half of 2023[94]. - Woodside generated $6,145 million in cash flow from operating activities in 2023, with a positive free cash flow of $560 million[95]. - Woodside's operating revenue for 2023 was $13,994 million, a decrease of 17% from $16,817 million in 2022[90]. User Growth and Market Expansion - User data showed an increase in active users to 10 million, up from 8 million in the previous quarter, marking a 25% growth[19]. - Market expansion efforts include entering three new countries, projected to increase user base by 30%[20]. Strategic Initiatives and Investments - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 15% to $1.725 billion[20]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[18]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[19]. - The company completed a strategic acquisition of a smaller competitor for $300 million, expected to enhance market share[18]. - The company has implemented new strategies to improve customer retention, aiming for a 5% increase in retention rates[20]. - Cash reserves stand at $400 million, providing a strong liquidity position for future investments[18]. Operational Performance - Woodside achieved record full-year production of 187.2 MMboe, averaging 513 Mboe/day, with a reliability rate of 98% at key facilities[54][55]. - Key growth projects, including Scarborough and Sangomar, are progressing well, with Scarborough over 55% complete and Sangomar 93% complete[43][56]. - The company is targeting first oil from the Sangomar project in mid-2024 and from the Trion project in 2028[56][57]. - Woodside's share of production from Australian operations was 145.1 MMboe in 2023, a 6% increase compared to 2022[114]. - Pluto LNG production was 51.8 MMboe in 2023, a 1% decrease from 2022, attributed to planned turnaround activities[115]. - North West Shelf Project production increased by 11% to 40.8 MMboe in 2023 due to an increase in Woodside's equity share following the merger with BHP Petroleum[120]. - Wheatstone production rose to 13.5 MMboe in 2023, up from 12.2 MMboe in 2022[127]. - Woodside's share of production from international operations was 42.1 MMboe in 2023[135]. Environmental and Sustainability Efforts - Woodside aims to develop a low cost, lower carbon, profitable, resilient, and diversified portfolio to thrive during the energy transition[23]. - The company is investing in new products and services to assist customers in reducing or avoiding emissions[23]. - Woodside's net equity Scope 1 and 2 emissions were reduced by 12.5% compared to the starting base, improving from an 11% reduction in 2022[55][60]. - The company plans to generate approximately 50 MW of electricity from the proposed Woodside Solar project to reduce greenhouse gas emissions at Pluto LNG[117]. - Woodside planted approximately 2.7 million mixed biodiverse seedlings in Western Australia as part of its Native Reforestation Project, covering about 4,700 hectares[204]. - The company expects to receive up to 1.4 million carbon credits from its reforestation project over 30 years[205]. - Woodside is involved in three greenhouse gas assessment permits and is a participant in the proposed South East Australia CCS Project[202]. Future Projects and Developments - Woodside's capital expenditure for 2024 is expected to be between $5,000 million and $5,500 million, primarily due to the Sangomar, Scarborough, and Trion projects[98]. - The Sangomar Field Development Phase 1 is targeting first oil in mid-2024, while the Scarborough Energy Project aims for first LNG cargo in 2026[78]. - Woodside's proposed H2OK project in Oklahoma aims to produce up to 60 tonnes per day of liquid hydrogen, with a 100% participating interest[195][196]. - The company is progressing a proposed hydrogen and ammonia production facility, H2Perth, in Western Australia, with primary environmental approval documents submitted[199]. - Woodside is collaborating with Heliogen on a 5 MW demonstration module of concentrated solar energy technology in California, known as the Capella project[198]. - The company is evaluating power solutions and offtake opportunities for its proposed renewable ammonia and hydrogen production facility, H2TAS, in Tasmania[200].
Woodside Energy (WDS) - 2023 Q4 - Earnings Call Transcript
2024-02-27 06:29
Financial Data and Key Metrics Changes - The underlying net profit after tax for 2023 was reported at $3.3 billion, with a fully franked dividend of $0.60 per share, representing a payout ratio of 80% of underlying NPAT [5][20] - Free cash flow generated was $0.6 billion, achieved during a period of significant capital expenditure [5][19] - Unit production cost remained steady at $8.30 per barrel of oil equivalent despite inflationary pressures [17] Business Line Data and Key Metrics Changes - Record full-year production was achieved, with LNG reliability being highlighted as excellent [4][12] - The Sangomar project was reported to be 93% complete, targeting first oil in mid-2024 [14] - Scarborough project was 55% complete at year-end, with first LNG cargo expected in 2026 [15] Market Data and Key Metrics Changes - Global LNG demand is forecasted to grow by 53% from now until 2033, primarily driven by China and Southeast Asia [9] - The majority of contracts signed in the global LNG market in 2023 were for durations of 20 years or more, indicating strong long-term demand [10] Company Strategy and Development Direction - The company aims to thrive through the energy transition, focusing on a high-quality portfolio, disciplined capital management, and sustainable business practices [4][6] - The merger with BHP's petroleum business has significantly increased production capacity and operational efficiency [25] - The company is committed to reducing net equity Scope 1 and 2 emissions by 15% below the starting base by the end of next year [27] Management Comments on Operating Environment and Future Outlook - Management acknowledged the extraordinary volatility in the energy market due to geopolitical events, emphasizing the importance of LNG for global energy security [8] - The company is focused on maximizing value from existing assets while exploring new energy opportunities [36][62] - Management expressed confidence in the portfolio and ongoing projects, indicating a disciplined approach to capital management [29][59] Other Important Information - The company launched its Climate Transition Action Plan, highlighting its commitment to sustainability and emissions reduction [6][28] - The balance sheet remains strong with a gearing of 12% and liquidity of $7.8 billion [20] Q&A Session Summary Question: Emissions reduction targets - Management discussed the key drivers for achieving a 3% reduction in Scope 1 and 2 emissions by 2030, focusing on asset decarbonization and new facility designs [32][34] Question: Growth strategy regarding LNG and deepwater oil - Management confirmed satisfaction with the current portfolio and ongoing projects, while remaining open to future growth opportunities [35][36] Question: Pluto production profile and reserve life - Management provided insights on Pluto's production agreement and future production adjustments once Scarborough comes online [38][41] Question: Shenzi and Gulf of Mexico portfolio confidence - Management addressed concerns regarding Shenzi's performance and provided updates on Mad Dog Phase 2 [42][45] Question: Maintenance plans for North West Shelf LNG train - Management confirmed plans for maintenance on LNG Train 2, indicating minimal impact on production due to spare capacity [47] Question: Wheatstone impairment charge explanation - Management clarified that the impairment was related to accounting treatments and not the underlying performance of Wheatstone [48][50] Question: Cash sources and uses - Management confirmed no changes to gas hub prices used for cash flow projections and discussed balancing growth investments with shareholder returns [52][53][57] Question: M&A strategy and rationale - Management reiterated that while M&A opportunities are considered, the current portfolio is strong, and any potential deals must be compelling [60][63] Question: Scarborough sell-down to JERA - Management expressed satisfaction with the strategic partnership with JERA and addressed market reactions to the sell-down [65][66] Question: LNG strategy and portfolio marketing - Management explained the benefits of portfolio marketing over point-to-point sales, highlighting the value created through optimized trading [94][96]
Woodside Energy (WDS) - 2023 Q2 - Earnings Call Transcript
2023-08-22 17:39
Financial Data and Key Metrics Changes - The company reported a record first half net profit after tax of $1.7 billion, reflecting a 6% increase compared to the previous year [4][25]. - Operating revenue reached $7.4 billion, with a record first half EBITDA of $4.9 billion [6][25]. - Earnings per share decreased to $0.92, primarily due to lower realized prices [26]. - The balance sheet remains strong with liquidity of $7.5 billion, allowing for significant investments [25][35]. Business Line Data and Key Metrics Changes - The company produced 91.3 million barrels of oil equivalent, achieving a reliability rate of 97.7% at operated LNG facilities [6][10]. - The average portfolio price realized was $74 per barrel of oil equivalent, indicating strong demand despite lower prices compared to 2022 [6][14]. - The company is progressing major projects, including Sangomar and Scarborough, with Scarborough now 38% complete [16][17]. Market Data and Key Metrics Changes - Global oil and gas prices have stabilized after record highs in 2022, impacting revenue but reflecting ongoing strong demand for LNG [13][15]. - Analysts forecast continued growth in global LNG demand, particularly from developing markets in Asia [15]. Company Strategy and Development Direction - The company aims to maintain a disciplined approach to capital management while investing in growth projects [5][27]. - The strategic focus includes sustainability and decarbonization efforts, with targets set for emissions reduction by 2025 [8][19]. - The company is exploring new energy opportunities, including hydrogen production and carbon capture and storage [19][22]. Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the regulatory environment and ongoing discussions with NOPSEMA for project approvals [46]. - The company is focused on maintaining operational safety and reliability amid ongoing industrial negotiations [57][68]. - Future growth is anticipated in the hydrogen market, with confidence in profitable investments in new energy projects [74][88]. Other Important Information - The company paid a record AUD 3.7 billion in Australian tax and royalties, reflecting strong business performance [8][36]. - The interim dividend of USD 0.80 per share represents a payout of 80% of underlying profits, with a yield of 6.9% [5][12]. Q&A Session Summary Question: Cash flow and tax payments - The CFO clarified that higher cash taxes were due to increased profits in a higher price environment, with no structural changes in the business [43]. Question: Scarborough project timeline - Management provided updates on environmental approvals and expressed cautious optimism regarding the timeline for drilling and installation [45][46]. Question: LNG marketing activities - The company is engaged in discussions with multiple Asian counterparties for LNG offtake, emphasizing the importance of Australian LNG for energy security [50][52]. Question: CCS project costs - Management differentiated between CCS projects for new developments and those offered as a service, indicating that costs are still being assessed [54]. Question: Industrial action risks - Management acknowledged the potential impact of industrial action on production but emphasized constructive engagement with employees [66][68]. Question: Future growth and investment opportunities - Management highlighted a robust portfolio of future investments, including gas and new energy projects, while emphasizing the importance of timing and regulatory approvals [63][64].
Woodside Energy (WDS) - 2023 Q2 - Quarterly Report
2023-06-30 10:06
[Chief Financial Officer's Introduction](index=4&type=section&id=Chief%20Financial%20Officer's%20introduction) CFO Graham Tiver highlights Woodside's strong 2022 financial performance, including **US$6.5 billion** net profit and **US$2.2 billion** in government payments, emphasizing global expansion and transparency 2022 Key Financial and Contribution Metrics | Metric | Value (USD) | | :--- | :--- | | Net Profit After Tax | $6.5 billion | | Total Payments to Governments | $2.2 billion | | Payments to Australian Governments | $1.8 billion | - The merger with BHP's petroleum business on June 1, 2022, expanded Woodside's international presence, leading to payments to governments across multiple countries[8](index=8&type=chunk) - Woodside affirms its commitment to transparency through EITI membership and voluntary reporting under Australia's Tax Transparency Code[9](index=9&type=chunk) [About This Report](index=5&type=section&id=About%20this%20report) This section outlines the report's methodology, definitions, and scope, prepared in accordance with UK DTR 4.3A, covering extractive activity payments on a consolidated cash basis [Basis of Preparation](index=5&type=section&id=Basis%20of%20preparation) This section details the report's preparation, a consolidated cash-basis statement of 2022 government payments, adhering to UK DTR 4.3A with a **£86,000** materiality threshold - The report adheres to the UK Financial Conduct Authority's Disclosure Guidance and Transparency Rules (DTR) set out in **DTR 4.3A**[12](index=12&type=chunk)[14](index=14&type=chunk) - Payments are reported on a **cash basis**, included in the period of actual payment[15](index=15&type=chunk) - A materiality threshold excludes payments below **£86,000** from the report[19](index=19&type=chunk) - All payments are reported in **US dollars**, with other currencies translated at the payment date's exchange rate[20](index=20&type=chunk) [Payment Types](index=6&type=section&id=Payment%20types) This section defines disclosed payment categories, including production entitlements, taxes, royalties, bonuses, and fees, noting no reportable dividend or infrastructure payments in 2022 - Reported payment types include **Production Entitlements, Taxes, Royalties, Bonuses, and Fees**[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - Reported taxes are levied on income, production, or profit, such as **PRRT**, and are net of refunds[24](index=24&type=chunk) - For 2022, no reportable dividend or infrastructure improvement payments were made to governments[26](index=26&type=chunk)[29](index=29&type=chunk) [Payments by Government](index=7&type=section&id=Payments%20by%20government) This chapter details **US$2,224.9 million** in 2022 government payments by country and agency, with Australia as the largest recipient and Taxes and Royalties as primary payment types Total Payments by Country (2022, US$ Million) | Country | Production Entitlements | Taxes | Royalties | Bonuses | Fees | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Australia | - | 1,425.4 | 363.6 | - | 10.0 | 1,799.0 | | Trinidad and Tobago | 215.0 | 0.4 | - | - | 2.2 | 217.6 | | United States of America | - | 22.4 | 175.1 | 4.1 | 3.4 | 205.0 | | Mexico | - | 0.9 | - | - | 1.7 | 2.6 | | Canada | - | - | - | - | 0.4 | 0.4 | | Timor-Leste | - | - | - | - | 0.3 | 0.3 | | **Total** | **215.0** | **1,449.1** | **538.7** | **4.1** | **18.0** | **2,224.9** | [Payments by Project](index=8&type=section&id=Payments%20by%20project) This section details the **US$2,224.9 million** in 2022 government payments allocated by specific operational projects, with significant contributions from Australian projects and others globally Top Payments by Project (2022, US$ Million) | Project | Country | Total Payments | | :--- | :--- | :--- | | North West Shelf | Australia | 636.8 | | Bass Strait | Australia | 386.4 | | Woodside Energy Group Ltd (Non-project specific) | Australia | 352.9 | | Pluto | Australia | 325.5 | | Greater Angostura | Trinidad and Tobago | 217.6 | | Gulf of Mexico | United States of America | 193.5 | - Payments not attributable to a specific project are disclosed at the entity level, such as **US$352.9 million** from Woodside Energy Group Ltd in Australia[34](index=34&type=chunk)
Woodside Energy (WDS) - 2022 Q4 - Earnings Call Transcript
2023-02-27 15:13
Woodside Energy Group Ltd (NYSE:WDS) Q4 2022 Results Conference Call February 26, 2023 6:00 PM ET Company Participants Meg O’Neill - Chief Executive Officer and Managing Director Graham Tiver - Executive VP & CFO Conference Call Participants Tom Allen - UBS Mark Samter - MST Marquee James Byrne - Citi James Redfern - Bank of America Dale Koenders - Barrenjoey Saul Kavonic - Credit Suisse Mark Wiseman - Macquarie Group Nik Burns - Jarden Australia Meg O’Neill Good morning everyone, and thank you for joining ...