Woodside Energy Group Ltd

Woodside reported half-year production of 86.5 million barrels of oil equivalent, EBITDA of $4.6 billion, underlying net profit after tax of $1.3 billion, and operating cash flow of $3 billion from the producing assets. Free cash flow was $352 million and liquidity was $8.2 billion at the end of the half. Management said free cash flow increased more than 150% year over year, while EBITDA was resilient at approximately $4.6 billion despite higher costs tied to Beaumont New Ammonia, the Pluto turnaround and trading timing. The board declared a fully franked interim dividend of USD 0.57 per share. For the second half, management expects stronger production and pricing, more than $100 million of value from trades executed in H1, cash inflow related to the Wheatstone/North West Shelf swap, and gearing back under 20% by 31 December 2026. They also said Scarborough remains on track for first LNG cargo in Q4 2026, Trion is targeting first oil in 2028, and Louisiana LNG remains on schedule and budget.

Liz Westcott framed the quarter as evidence of reliable operations and disciplined execution during volatile markets, emphasizing Woodside’s ability to deliver through leadership transition and market turbulence. She repeatedly stressed that the company is moving into a “next phase” centered on operational excellence, sharper portfolio quality and stricter capital discipline. Her tone was confident but more selective on growth, especially around new energy, where she said projects must have customer demand and commerciality.

Graham Tiver highlighted the strong cash generation and balance sheet, pointing to $352 million of free cash flow, $8.2 billion of liquidity and gearing of 20.6% at 30 June 2026, which was slightly above the 10% to 20% target range. He said the company retained investment-grade credit and expects gearing to fall back below 20% by year-end, helped by stronger second-half production, the Pluto turnaround being behind them, pricing tailwinds, the Wheatstone/North West Shelf swap and cash-settled hedges. He also noted $1.7 billion of capital contributions from Stonepeak and Williams for Louisiana LNG and said the interim dividend at USD 0.57/share shows confidence in the balance sheet and payout framework.

Analysts focused on the Beaumont New Ammonia strategic review, asking whether Woodside might sell it fully or partially, but management said no pathway has been decided and that all options are being considered. Questions also centered on the new single capital allocation framework and the $350 million cost-out target; management said details will come at the Capital Markets Day and that the savings will come from operating costs, overhead and some sustaining capex starting in 2028. There were repeated questions on Louisiana LNG sell-down timing, and management said interest remains strong but Woodside is being patient and wants high-quality partners, with no planned change to the project structure.