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Highlights
- FY24 revenue dipped to US$13.2 billion
- Record production reached 203.5 MMboe
- Key projects set stage for future growth
Woodside (ASX:WDS) recently reported its FY24 financial performance, unveiling a mix of financial adjustments and encouraging operational achievements. Despite a modest decline in several financial metrics, the company achieved record production and advanced multiple projects that could shape its future in the competitive energy landscape.
During the 12-month period ending December 2024, Woodside’s operating revenue declined by 6% to US$13.2 billion. The underlying net profit experienced a 13% drop, settling at US$2.88 billion, while operating cashflow decreased 5% to US$5.8 billion. In contrast, the reported net profit surged by 115% to US$3.57 billion. Dividends saw a reduction as well, with the final dividend falling 12% to US$0.53 per share and the full-year dividend down 13% to US$1.22 per share.
Operational performance remained a standout aspect of the year. The annual sales volume increased marginally by 1%, reaching 203.5 million barrels of oil equivalent (MMboe). However, the average realized price experienced a 7% decline to US$63.6 per barrel of oil equivalent (BOE). Woodside managed to achieve record annual production, which aligned with the upper end of its full-year guidance. This milestone was supported by an impressive 98% reliability at its liquefied natural gas (LNG) facilities. Additionally, the company succeeded in reducing unit production costs by 2% to US$8.1 per BOE, an achievement realized even in the face of inflationary pressures.
On the project front, the new Sangomar project ramped up to full capacity within nine weeks of its June 2024 startup. It contributed approximately 12.9 MMboe and generated around US$950 million in revenue. The Scarborough project reached 80% completion and is on track for its first LNG cargo in 2026. Strategic transactions in this project saw LNG Japan secure a 10% interest for US$910 million and JERA acquire a 15.1% stake for US$1.4 billion, underlining the market’s confidence in long-term energy security.
International expansion continued with progress on the Trion project in Mexico, which is now more than 20% complete and is targeting its first oil production in 2028. Meanwhile, investments in Louisiana LNG and Beaumont New Ammonia projects are also advancing. The Louisiana LNG project, situated on the US Gulf Coast, has received permits for 27.6 mt per year of LNG production and is moving towards a final investment decision in the first quarter of 2025. The Beaumont New Ammonia initiative is positioned to generate strong cash flows and facilitate early participation in the emerging market for lower-carbon ammonia once its associated carbon capture and storage facility becomes operational.
Looking ahead, guidance for FY25 suggests unit production costs are expected to fall between US$8.5 and US$9.2 per BOE, with property, plant, and equipment depreciation and amortization forecast between US$4.5 billion and US$5 billion. A capital expenditure of US$200 million on exploration is planned, while production is anticipated to range between 186 and 196 MMboe, compared to 193.9 MMboe in FY24. Future performance will largely depend on energy price dynamics and broader market conditions, presenting both opportunities and challenges for the energy sector.
