Financial highlights for H1 2022
• Net profit after tax of US$1,640 million
• Underlying net profit after tax of US$1,819 million
• Positive free cash flow of US$2,568 million
• Total tax, royalties and excise expense of US$1,476 million, equating to a statutory effective income tax rate of approximately 33% and an all-in effective tax rate of approximately 47%
• Liquidity of US$7,915 million
• Declared an interim dividend of 109 US cents per share
• Results reflect strong operational performance and realised benefits of the merger with BHP’s petroleum business
Operational highlights
• Delivered production of 54.9 MMboe, including 9.7 MMboe from the former BHP Petroleum assets in June 2022
• Tolling operations commenced at NWS Project, using Pluto gas transported through the Pluto-KGP Interconnector enabling strong Pluto production performance
• Delivered subsea projects ahead of schedule and under budget: GWF-3, Pyxis Hub, JulimarBrunello Phase 2 in Australia and Shenzi subsea multiphase pumping in US Gulf of Mexico
• Increased production capacity at Bass Strait, enabling Woodside to supply additional gas into the eastern Australian domestic gas market
Business highlights
• Completed merger with BHP’s petroleum business
• Commenced trading on the London Stock Exchange and New York Stock Exchange
• Delivered post-merger synergies of approximately $100 million of the $400+ million per year target
• Scarborough and Pluto Train 2 is 18% complete: procured all major items, commenced fabrication of floating production unit (FPU) topsides and pipeline, and completed fabrication of subsea trees for initial phase
• Completed sell-down of a 49% interest in Pluto Train 2
• Sangomar Phase 1 is 63% complete: completing final dry dock activities for the FPSO, commenced subsea installation scope, and increased drilling activity with arrival of second drillship in July
• Awarded front-end engineering design (FEED) contract for the H2OK hydrogen project
Summary
Woodside recorded a half-year reported net profit after tax (NPAT) of US$1,640 million. Underlying NPAT was US$1,819 million, up 414% on the corresponding period in 2021. Operating revenue rose 132% year-on-year to US$5,810 million.
Woodside Energy CEO Meg O’Neill said the results reflect strong operational performance and higher realized prices, which more than doubled year-on-year to $96.4 per barrel of oil equivalent across the expanded portfolio.
“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.
“Production for the half year was 19% higher at 54.9 million barrels of oil equivalent, benefiting from the contribution in the month of June of the former BHP assets and improved reliability at our LNG facilities.
“In particular, production from Pluto was increased by the start-up of Pyxis Hub and the commencement of gas flows through the Interconnector pipeline to Karratha Gas Plant. This well-timed investment allowed us to supply three LNG cargoes, one condensate cargo and pipeline gas into a strong market, generating $419 million in revenue and delivering additional value to our shareholders.
“The start-up of the Pluto-KGP Interconnector also marked the beginning of the North West Shelf Project’s transformation into a tolling facility, which is essential to the long-term future of Australia’s first and largest LNG plant.
“Our subsea project teams also successfully delivered the Greater Western Flank Phase 3 and JulimarBrunello Phase 2 projects in Australia, and the Shenzi subsea multi-phase pump in the Gulf of Mexico.
“We are increasing activities at our Scarborough and Pluto Train 2 projects in Western Australia, with all major equipment items procured, fabrication of the floating production unit topsides and Pluto Train 2 construction works underway, the subsea trees for the initial development phase complete and pipeline manufacturing progressing.
“The Sangomar Field Development Phase 1 in Senegal is also progressing strongly, with drydock activities for the FPSO conversion completed during the period and the subsea installation campaign commencing in August. A second drillship commenced drilling in July, supporting the 23-well development drilling campaign.
“Woodside continues to deliver a disciplined approach to capital management, generating $2,568 million of free cash flow during the half and demonstrating our commitment to shareholder returns with the declaration of a fully franked interim dividend of 109 US cents per share. The dividend payout is based on 80% of underlying NPAT plus 80% of the merger completion payment adjusted for working capital, equivalent to
returning approximately 81% of free cash flow. Our credit ratings of BBB+ and Baa1 were reaffirmed by S&P Global and Moody’s respectively.
“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.
