Woodside Energy (US:WDS)2022-08-30 10:31Financial Performance - Net profit after tax for H1 2022 was US$1,640 million, with underlying net profit increasing by 414% to US$1,819 million compared to H1 2021[4]. - Operating revenue rose 132% year-on-year to US$5,810 million, driven by higher realized prices which more than doubled to US$96.4 per barrel of oil equivalent[4][5]. - Free cash flow for the half-year was US$2,568 million, reflecting a significant increase of 688% compared to the previous year[10][15]. - Profit after tax was $1,679 million, compared to $342 million in the previous year, marking a rise of 390%[190]. - Basic earnings per share attributable to equity holders of the parent increased to 145.5 US cents, up from 33.3 US cents, representing a growth of 337%[190]. - Total comprehensive income for the period was $628 million, compared to $401 million in the previous year, showing an increase of 56%[192]. - Woodside Energy Group Ltd reported a profit of $1,640 million for the half-year ended 30 June 2022, compared to $317 million in the same period of 2021, representing a significant increase[198]. Dividends and Shareholder Returns - An interim dividend of 109 US cents per share was declared, representing a 263% increase from the previous year[10][20]. - The company paid dividends totaling $0.717 billion, a decrease from $0.888 billion, which is a reduction of about 19.2%[1]. - The company paid dividends totaling $1,018 million during the half-year, with an additional $589 million distributed to shareholders[198]. Production and Operations - Production for H1 2022 was 54.9 million barrels of oil equivalent, a 19% increase, benefiting from contributions from former BHP assets[5][15]. - Woodside achieved approximately 17.5 MMboe of production in 2022 at an average price of $74.6 per barrel, with 5.8 MMboe already delivered[30]. - Production from Pluto LNG was 24.3 MMboe in the first half of 2022, an 11% increase compared to the first half of 2021[35]. - Woodside's share of production from the North West Shelf Project was 13.1 MMboe, a 1% decrease due to natural field decline and planned maintenance[39]. - Woodside's share of production from the Ngujima-Yin FPSO was 3.7 MMboe, a 12% increase compared to the first half of 2021[49]. - The Sangomar Field Development Phase 1 was 63% complete as of June 30, 2022, with Woodside holding an 82% participating interest[73]. - Woodside targets first oil from Sangomar in the second half of 2023[77]. Mergers and Acquisitions - The merger with BHP Petroleum was completed on June 1, 2022, with Woodside acquiring BHP Petroleum International Pty Ltd and issuing 914,768,948 new shares[31][32]. - The merger with BHP's petroleum business delivered post-merger synergies of approximately US$100 million towards a target of over US$400 million per year[3][10]. - Woodside delivered $100 million in synergies from the merger, with over $300 million in further synergy opportunities identified[34][42]. - Following the merger with BHP's petroleum business on June 1, 2022, Woodside's Proved (1P) Reserves increased to 2,339.6 MMboe and Proved plus Probable (2P) Reserves increased to 3,786.4 MMboe[124]. Financial Position and Liquidity - Liquidity at the end of the period was US$7,915 million, with drawn debt of US$5,404 million, resulting in a gearing ratio of 6.8%[24][25]. - Total assets as of 30 June 2022 amounted to $54,952 million, compared to $26,474 million at the end of 2021, indicating a growth of 74%[194]. - Total liabilities increased to $21,528 million from $12,245 million, reflecting a rise of 76%[194]. - Net assets grew to $33,424 million, up from $14,229 million, which is an increase of 135%[194]. - Cash and cash equivalents as of 30 June 2022 were $4,615 million, up from $3,025 million at the end of 2021, representing a growth of 53%[194]. Capital Expenditure and Investments - Capital expenditure for the Scarborough, Pluto Train 2, and Sangomar projects is estimated at approximately US$9 billion from July 2022 to December 2024[27]. - Woodside plans to invest $5 billion in new energy products and lower-carbon services by 2030[94]. - H2OK project aims to produce up to 90 tonnes per day of liquid hydrogen, with a targeted final investment decision in 2023[95][96]. - H2Perth development concept updated to increase ammonia production from 0.6 Mtpa to 0.84 Mtpa, with FID targeted in 2024[97]. Environmental, Social, and Governance (ESG) - Woodside was recognized as an ESG Industry Top Rated Company by Sustainalytics in the first half of 2022[116]. - Woodside's year-to-date total recordable injury rate was 1.81 per million work hours, compared to 1.74 for full-year 2021[114]. Resource Estimates - Woodside's Proved (1P) Reserves were adjusted to comply with SEC regulations, resulting in some reductions due to a more restrictive rules-based approach[126]. - The total Proved plus Probable (2P) Developed and Undeveloped Reserves are reported as 3,786.4 MMboe, with 1,177.0 MMboe classified as Developed[127]. - The Best Estimate (2C) Contingent Resources total 8,682.4 MMboe, with significant contributions from the Greater Browse and Greater Scarborough assets[135]. - The company reported 41,427.5 Bcf of Natural Gas and 1,324.3 MMbbl of Oil/Condensate in its Contingent Resources[129].