As expected, Woodside Energy has reported a five-fold increase in net profit for the six months to June 30 and boosted the dividend payout to shareholders to record levels as a result.
Net profit for the six months to June 30 was $US1.64 billion ($A2.4 billion) thanks to Vlad Putin’s invasion of Ukraine in late February and the impact of western sanctions on Russian energy and resource exports and the growing impact of Russian gas supply disruptions to Europe which have more than doubled of oil and gas prices
That added $US2.5 billion to Woodside’s revenue for the six months.
As a result, shareholders will receive $US2.07 billion via a fully franked dividend of $US1.09 a share made up of 76c from an allocation of 80% of the net profit after tax and 33c from cash payments from BHP after the sale of its assets was completed.
Woodside chief executive Meg O’Neill said the result came not only from higher prices but better operational performance.
“Our first results since the completion of the merger with BHP’s petroleum business highlight the increased financial and operational strength delivered by our larger, geographically diverse portfolio of high-quality operating assets,” she said.
Increased production added $US820 million to the bottom line that was clipped by $US474 million in extra administration due to its purchase of BHP’s petroleum division and a $US1.09 billion turnaround in tax payments.
Woodside’s shares jumped 3.8% after the result and ended the day at $35.87, up 1.4%.
Woodside reported an underlying net profit after tax of $US1.82 billion for the six months to June 30, up from $US354 million a year earlier. The result beat analysts’ estimates of around $US1.49 billion.
O’Neill said Woodside was increasing work on its $US12 billion Scarborough to Pluto project with all major equipment items procured, fabrication of the floating production unit topsides and onshore construction works underway.
She also said Woodside is in talks with ‘high quality’ companies looking to buy a stake in the Scarborough gas project, but won’t sell unless it gets the right price.
The company has been looking to sell down its holding in its biggest growth project on and off for more than 18 months.
It now owns 100% following its takeover of BHP Group’s oil and gas business.
“We’re not going to fire sale this critical asset,” O’Neill told analysts on a post results call.
“We are the largest energy company listed in Australia and we are proud to be making a significant economic contribution through our continued investment in existing operations and growth projects and through our tax payments, including petroleum resource rent tax. We paid approximately A$700 million in Australian taxes, royalties and excise in the first half of this year.
“The upheavals in global and Australian energy markets witnessed over the course of the past six months have shone a spotlight on the importance of gas in the world’s energy mix and underscores our confidence in the longer-term demand outlook for gas, which makes up 70% of Woodside’s portfolio.
“Safe and reliable supplies of gas are not only critical to global energy security but will play a key role as our customers seek to decarbonise, alongside new energy sources such as hydrogen and ammonia that Woodside is investing in.
“Our strategy to thrive through the energy transition as a low-cost, lower-carbon energy provider continues to progress through recently announced initiatives across hydrogen refuelling, carbon capture and storage and carbon to products technologies,” she said.
