Woodside Profit Jumps 27% as Higher Prices Offset Lower Production
Tue, August 25, 2026 at 5:30 AM GMT+3 3 min read
Woodside Energy reported net profit after tax of $1.67 billion for the first half of 2026, up 27% from a year earlier, as higher oil and LNG prices helped offset a 13% decline in production.
Underlying profit rose 7% to $1.33 billion, while operating revenue increased 13% to $7.45 billion. Woodside's average realized price climbed 20% to $74 per barrel of oil equivalent amid tighter global energy markets.
The Australian producer said Middle East supply disruptions strengthened oil and LNG prices during the period and boosted demand, while its marketing and trading business redirected cargoes toward higher-value markets.
Production fell to 86.5 million barrels of oil equivalent, or 478,000 boe per day, from 99.2 million boe a year earlier. The decline reflected cyclone disruptions, a planned turnaround at Pluto LNG and the disposal of Woodside's Greater Angostura assets.
Operating cash flow slipped 10% to $3.01 billion, although free cash flow rose to $352 million from $136 million. Woodside declared a fully franked interim dividend of 57 U.S. cents per share, up from 53 cents a year earlier and equivalent to 80% of underlying profit.
Woodside also narrowed its 2026 production guidance to 174 million-185 million boe from a previous range of 172 million-186 million boe. Capital expenditure guidance remains unchanged at $4 billion-$4.5 billion.
The company's major growth projects continued to advance during the half. The Scarborough Energy Project in Western Australia was 98% complete at the end of June and remains on track for its first LNG cargo in the fourth quarter of 2026. Woodside subsequently achieved first gas at the project's floating production unit.
The Trion oil project offshore Mexico reached 64% completion and continues to target first oil in 2028, while the foundation phase of Louisiana LNG was 28% complete and is targeting first LNG in 2029.
Those developments are central to Woodside's strategy of adding new production as output from some mature Australian assets declines. Louisiana LNG, approved for development in 2025, will add 16.5 million tonnes per year of LNG capacity in its initial three-train phase, while Scarborough will supply gas to the expanded Pluto LNG complex.
Woodside ended June with $8.19 billion of liquidity. Gearing rose to 20.6%, marginally above its 10%-20% target range, partly because of new lease liabilities and cash outflows from hedge settlements.
The company also announced a cost-reduction program targeting $350 million in annual savings from 2028 as management seeks to improve performance while delivering its major capital projects.
By Charles Kennedy for Oilprice.com
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