Woodside Energy has unveiled record half year profit of $US1.74 billion ($2.71 billion), as chief executive Meg O’Neill backed handling of negotiations with Offshore Alliance.
Woodside Energy has unveiled record half year profit of $US1.74 billion ($2.71 billion), as chief executive Meg O'Neill backed handling of negotiations with Offshore Alliance with potential strike action looming.
The oil and gas producer recorded a 23 per cent increase in EBITDA to US$4.9 billion, a 27 per cent increase in operating revenue to US$7.4 billion, and a 6 per cent increase in net profit after tax – all records.
That came despite a 23 per cent reduction in Woodside’s realised prices for its product in the first half, down to US$74/boe as global markets normalised.
Percentage movements were measured against the first half of last year, immediately before Woodside took control of BHP Petroleum’s assets.
Ms O'Neill said the producer was wary of the finely balanced nature of the energy market and bullish on its future, evidenced capital and exploration expenditure up 82 per cent to US$2.8 billion, largely focused on investment in the Scarborough project off WA’s coast and Sangomar in Senegal.
Scarborough has been a point of contention Woodside, which ramped up its consultation approach after a legal action was taken last week by Mardudhunera Traditional Custodian Raelene Cooper against seismic testing.
A key National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) approval for work at Santos’ Barossa offshore gas project was dramatically overturned last year in similar circumstances.
Ms O'Neill said recent NOPSEMA approvals of environmental plans for the Nganhurra riser turret mooring and a second seismic plan at Scarborough would serve as a litmus test.
“I would look at the recent EP approvals as a sign that there is clarity in the marketplace between industry and the regulator as to what complete and appropriate consultation looks like following the court decision,” she said.
“We are cautiously optimistic that the work we’ve done on the other Scarborough EPs will also meet NOPSEMA’s expectations.”
Woodside estimates Scarborough is now 38 per cent complete, with a first LNG target of 2026, and Ms O’Neill said the company was confident of bringing the project online within its cost estimates despite pressures in the marketplace.
“Its something we continue to monitor very closely and work with our contractors on very closely,” she said.
The record earnings were reported amid rising tension with workers at the Goodwyn Alpha, North Rankin and Angel offshore LNG platforms.
Recent talks with Offshore Alliance have failed to deliver a definitive outcome for the parties and protected strike action is a possibility, seemingly hinging on the outcome of a meeting tomorrow.
Ms O'Neill said she was comfortable with her company’s engagement in ongoing negotiations with Offshore Alliance.
“There are many different forms that protected industrial action might take,” she said.
“Those range from things like slowdowns of work – I call it headaches and inefficiencies in the business – way up to complete stoppages.
“I don’t know what the unions are going to call. What we can control is the engagement we have with our employees and the engagement we have in the bargaining process.
“We’ve been very constructive, we’ve been listening, trying to really understand the things that our employees are concerned about, and coming up with solutions.”
Ms O'Neill also confirmed that potential strike action could temporarily hinder Woodside’s ability to supply the domestic gas market, as well as LNG output, if supply was constrained to the Karratha gas plant.
On the environmental front, Woodside said it was exploring carbon capture options at four sites in Australia, including at the currently untapped Browse project and the depleted Angel gas field in the Carnarvon Basin.
Ms O'Neill said the company was early stage with its carbon capture, but envisaged a model where it would offer CCS as a service to buyers in future.
Woodside also highlighted a 472 per cent increase to its Australian tax payments over the half year to $3.7 billion, up $1 billion from its full-year tax outlay in 2022.
The company said it had paid $1 billion in petroleum resource rent tax in the past 12 months.
Woodside paid a US80c dividend. Its shares were trading down 1.22 per cent at 10am.
