Half Year 2026 Woodside Energy Group Ltd Earnings Call Transcript
Key Points
- Woodside Energy Group Ltd (WOPEF) delivered a strong operational and financial performance in H1 2026, with production of 86.5 million barrels of oil equivalent and a year-on-year free cash flow increase of over 150%.
- The company maintained a resilient EBITDA of $4.6 billion and declared a fully franked interim dividend of USD0.57 per share, at the top end of its payout range, reflecting confidence in its balance sheet.
- Major growth projects, including Scarborough, Trion, and Louisiana LNG, are progressing on schedule and on budget, with Scarborough on track for first LNG cargo in Q4 2026.
- Woodside Energy Group Ltd (WOPEF) announced a structural cost reduction target of USD350 million per year from 2028, aiming to improve business efficiency and resilience through the cycle.
- The company is actively managing its portfolio, including the preemption of additional equity in Browse and the divestment of Calypso, to focus on value-accretive opportunities and strengthen long-term cash flow potential.
- Woodside Energy Group Ltd (WOPEF) recorded one high-consequence injury during the half, underscoring ongoing safety challenges despite a strong overall safety record.
- Production was curtailed by cyclone impacts and the planned Pluto turnaround, limiting the company's ability to capitalize on spot market opportunities during a period of high prices.
- The company's gearing ratio at 20.6% was marginally outside its target range of 10% to 20%, reflecting new lease liabilities and timing of cash flows, though it expects to return below 20% by year-end.
- Beaumont New Ammonia production was constrained by third-party feedstock availability, with impacts expected to continue through 2027, and the company has initiated a strategic review of the asset due to changing market conditions.
- Woodside Energy Group Ltd (WOPEF) retired its Scope 3 investment and emissions abatement targets, acknowledging that markets for lower carbon opportunities have developed more slowly than anticipated, which may raise concerns about its long-term sustainability commitments.
Good morning, and welcome to [Woodsideâs 2026 half-year] results presentation. Joining me on todayâs call is our Chief Financial Officer, Graham Tiver. We are presenting from Sydney, and Iâd like to begin by acknowledging the traditional custodians of this land, the Gadigal people of the Eora Nation, and pay my respects to their Elders, past and present.
Now please take time to read the disclaimers, assumptions, and other important information on slides 2 and 3. And Iâd also like to remind you that all dollar figures in todayâs presentation are in US dollars unless otherwise indicated.
Itâs a great pleasure to present my first set of results as Woodside CEO. Iâm proud of the way we have delivered reliably and consistently through our company leadership transition and during a time of historic volatility on global energy markets. This continues our proven track record as a reliable supplier to customers and highlights the competitive advantages we have developed over 40-plus years of operations.
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