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Highlights
- Quarterly production and revenue lifted year-on-year
- Major project developments remain on track
- Strategic divestments and LNG deals enhance growth outlook
Shares of Woodside Energy Group Ltd (ASX:WDS) edged higher by 3% following the release of its FY25 first quarter update, which provided investors with a snapshot of production, revenue, and ongoing strategic initiatives. While quarterly performance dipped slightly compared to the previous quarter, year-on-year growth and strong project execution appear to be fueling renewed investor interest.
Q1 Production and Revenue Snapshot
For the quarter ending 31 March 2025, Woodside recorded production of 49.1 million barrels of oil equivalent (MMboe). This marked a 4% decline from Q4 FY24, largely attributed to weather-related disruptions at the North West Shelf and unplanned outages at the Pluto facility. However, increased output from Shenzi and Atlantis partly offset this impact.
Looking at the year-on-year comparison, the company achieved a 9% increase in quarterly production, primarily driven by the commencement of production at the Sangomar project in Senegal in mid-2024.
Quarterly revenue stood at US$3.3 billion, a 5% decrease from the previous quarter due to lower output and softer oil-linked pricing. Nonetheless, revenue showed a 13% uplift from the prior year, supported by the Sangomar contribution and stronger gas hub-linked pricing.
Strategic Project Momentum
Woodside continues to deliver on key project milestones. The Beaumont New Ammonia Project in the US is now 90% complete, with Phase 1 expected to commence operations in the second half of 2025.
Meanwhile, the high-profile Scarborough energy project, a cornerstone in Woodside’s LNG strategy, has reached 82% completion. The first LNG shipment remains targeted for the second half of 2026. Additionally, the Trion oil project is 26% complete, with first oil still anticipated in 2028.
These projects, spanning ammonia, LNG, and oil, form a diversified growth pipeline that aligns with global energy transition trends.
Portfolio Streamlining and New LNG Agreements
Woodside is also actively optimizing its portfolio. The company announced plans to divest its Greater Angostura assets, aiming to free up capital and enhance cash flows in the near term.
In a notable post-quarter development, Woodside agreed to sell a 40% stake in its Louisiana LNG Infrastructure. It also signed a long-term LNG supply agreement with Uniper, which includes provision for up to 2 million tonnes per annum.
Looking Forward
While the Woodside (WDS) share price remains around 30% lower over the past year, the business appears to be stabilizing through disciplined execution, project progression, and strategic asset rebalancing. The company's ongoing efforts in LNG and energy diversification underscore its positioning for sustained relevance in a transitioning global energy landscape.
