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Highlights
- Woodside Energy reports record production driven by Senegal's Sangomar oil project.
- Full-year production guidance revised upwards; capital investment forecast reduced.
- Woodside’s LNG projects and US acquisitions expand its portfolio.
Woodside Energy (ASX:WDS) has reported record production levels in its latest quarter, thanks to the rapid start-up of its new oil project in Senegal. The company's Sangomar oil project, which began production in June, has played a pivotal role in boosting Woodside’s output, achieving full capacity of 100,000 barrels per day within a few months.
During the September quarter, Woodside recorded a 20% increase in production compared to the previous quarter, reaching 53.1 million barrels of oil equivalent. Sales also jumped 21% from the June quarter, with total revenue reaching $US3.68 billion. This growth was further supported by high operational reliability at the Pluto and North West Shelf (NWS) liquefied natural gas (LNG) ventures in Western Australia.
Woodside’s CEO, Meg O’Neill, highlighted the significance of the Sangomar project, along with the consistent performance of the Pluto LNG and NWS projects, which reported operational reliability rates of 99.9% and 99.2%, respectively. She also noted the benefits of the company’s exposure to LNG hub prices, which allowed Woodside to take advantage of higher spot prices in the global market.
In response to this strong operational performance, Woodside revised its full-year production guidance upwards. The company now expects total output to range between 189 million and 195 million barrels of oil equivalent, up from its earlier forecast. Capital investment guidance, however, was lowered, with the company now projecting between $US4.8 billion and $US5.2 billion, down from its previous upper range of $US5.5 billion.
Woodside is also progressing with its major growth projects. Its $16.5 billion Scarborough LNG project in Western Australia is 73% complete and remains on track to deliver its first LNG cargo in 2026. Meanwhile, construction at the Trion oil project in Mexico has reached 15% completion, with production expected to commence in 2028.
Despite these achievements, Woodside’s continued focus on oil and gas development has drawn criticism from environmental groups and some shareholders, particularly regarding the company’s commitment to emissions reduction under the Paris Agreement. The company faced opposition to its climate plan earlier this year, which was rejected by a majority of shareholders.
Nevertheless, Woodside has expanded its portfolio with several strategic acquisitions aimed at balancing its traditional energy assets with cleaner alternatives. These include the acquisition of a low-carbon ammonia project in Texas and the purchase of an LNG export terminal in Louisiana. These investments are part of the company’s broader strategy to position itself for success during the energy transition.
In a move to streamline operations and cut costs, Woodside has also announced it will delist from the London Stock Exchange, citing low trading volumes. However, it will maintain its listing on the New York Stock Exchange through American Depositary Receipts.
As Woodside continues to navigate the evolving energy landscape, the company remains focused on delivering long-term value through a balanced portfolio of conventional and cleaner energy projects.
