Woodside Shares Surge Amid Global Oil Price Rally Despite Q1 Output Dip

Highlights

• Woodside Energy rises despite dip in quarterly output and revenue
• Energy sector sees widespread gains amid rising oil prices
• Strong LNG demand and strategic contracts support long-term outlook

Shares in Woodside Energy (ASX:WDS) gained ground even as the company reported a fall in first-quarter production and revenue. The stock advanced 3.8% to $20.46 by 2pm AEST, outperforming broader market expectations, buoyed by a strong performance across the energy sector and a lift in global oil prices.

Sector-Wide Momentum Lifts Energy Stocks

The broader energy segment on the ASX rallied 4.5%, bolstered by gains across major names. Karoon Energy (ASX:KAR) surged 6.5%, Santos (ASX:STO) jumped 5.2%, Ampol (ASX:ALD) rose 2.7%, and Beach Energy (ASX:BPT) lifted 2.6%. The rally was in step with movements in the international oil market, as Brent crude edged up 0.8% to US$67.99 a barrel, while West Texas Intermediate climbed 1.8% to US$64.20.

Woodside’s Q1 Results: Weather, Outages Impact Output

In its March quarter update, Woodside Energy (ASX:WDS), Australia’s largest oil and gas producer, reported production of 49.1 million barrels of oil equivalent (mboe), marking a 4% decline compared to the previous quarter. Sales volumes slipped 7% to 50.2 mboe, while revenue declined by 5% to US$3.32 billion (A$5.2 billion).

The company attributed the decline to adverse weather conditions at its North West Shelf operations in Western Australia and unplanned outages at the Pluto facility. Despite these setbacks, production gains were seen at the Shenzi and Atlantis fields off the US coast, complemented by the contribution from the newly added Sangomar facility in Senegal.

Resilient LNG Demand and Strategic Progress

Customer appetite for liquefied natural gas (LNG) remains firm. Woodside signed a 15-year sale and purchase agreement with China Resources during the quarter, marking the fourth new long-term LNG contract secured in just over a year. These agreements reinforce the company's confidence in the regional demand outlook.

Management also affirmed that key growth projects are progressing as planned and remain within budget. These developments support the company's longer-term production and earnings profile, with a diversified portfolio spanning Australia, the US, and Africa.

Despite a short-term decline in operational metrics, the market’s reaction signals confidence in Woodside’s (WDS) strategic positioning, resilience in LNG markets, and alignment with the broader strength in global energy trends.