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Highlights
- Woodside production slips 4% in Q1 2025
- US gas assets partially offset Australian shortfalls
- Revenue down 5% quarter-on-quarter, up 13% year-on-year
Woodside Energy (ASX:WDS), Australia’s largest publicly listed oil and gas company, posted a 4% decline in production for the first quarter of 2025, with total output at 49.1 million barrels of oil equivalent (MMboe). The drop was largely attributed to severe weather events and unplanned maintenance issues impacting operations at the North West Shelf and Pluto LNG project—key components of its Australian offshore portfolio.
Despite these setbacks, Woodside saw a lift in production from its international assets, particularly in the United States. The Shenzi and Atlantis fields, located in the Gulf of Mexico off the Louisiana coast, delivered stronger-than-expected performance, helping to cushion the impact of domestic shortfalls.
Quarterly revenue came in at $3.32 billion, representing a 5% decline compared to the previous quarter. The fall was mainly driven by lower production volumes and a dip in oil-linked pricing. Nevertheless, the company still reported year-on-year growth, with revenue rising 13% and production increasing by 9% compared to Q1 2024. This improvement is largely due to the successful mid-2024 start-up of the Sangomar oil field, located offshore Senegal, and continued strength in global gas markets, particularly those tied to pricing hubs.
Average realised pricing for the quarter stood at $US65 per barrel of oil equivalent, marking a 3% increase from the same period last year. This reflects the resilience of gas demand, particularly liquefied natural gas (LNG), which remains a core focus for the company’s long-term growth.
According to Woodside CEO Meg O’Neill, demand for the company’s LNG products continues to be solid, underpinned by strategic customer relationships and supply commitments across Asia-Pacific.
As Woodside navigates short-term operational challenges, its diversified asset base and recent international expansions appear to be key in maintaining overall momentum. With the energy transition underway and demand for LNG showing strength, the outlook for continued recovery and long-term growth remains notable for the company.
Woodside's diversified portfolio strategy, combining Australian and international operations, continues to provide resilience amid market and operational fluctuations, reinforcing its position in the global energy sector.
