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Highlights
- Woodside achieves record quarterly production driven by the Sangomar project.
- Revenue rises significantly, reflecting higher LNG prices and strong domestic demand.
- Strategic acquisitions and project advancements position Woodside for future growth.
Woodside has announced its financial results for the third quarter of 2024, showcasing a remarkable performance fueled by the ramp-up of its Sangomar project and a strong operational footprint. The company reported record production of 53.1 million barrels of oil equivalent (MMboe), translating to an impressive daily rate of 577 Mboe. This marks a 20% increase from the previous quarter, underscoring the success of ongoing projects and increased uptime across its operated assets.
The surge in production can be attributed to multiple factors, including the impressive 99.9% reliability at the Pluto liquefied natural gas (LNG) facility and heightened seasonal domestic gas demand. As a result, Woodside has narrowed its full-year production guidance to a range of 189 to 195 MMboe.
Quarterly revenue reached $3,679 million, reflecting a 21% increase compared to Q2 2024. This growth was primarily driven by successful cargo sales from the Sangomar project and higher average LNG prices, demonstrating Woodside's ability to capitalize on favorable market conditions. Notably, the company achieved nameplate capacity at Sangomar, recording gross production rates of 100,000 barrels per day.
To further enhance its financial performance, Woodside capitalized on rising gas-hub prices, selling 39% of its produced LNG cargoes at prices linked to gas hub indices. The company has subsequently increased its full-year guidance for gas hub sales to 33% to 37% of produced LNG.
Woodside's ongoing projects are progressing well, with the Scarborough Energy Project reaching 73% completion by the end of the quarter. The successful installation of the trunkline in October positions the project on track for its first LNG cargo in 2026. Meanwhile, the Trion Project is 15% complete and is targeting first oil by 2028.
In a significant strategic move, Woodside completed the acquisition of OCI’s Clean Ammonia Project in Beaumont, Texas, for an all-cash consideration of approximately $2,350 million. This acquisition, with 80% of the payment already completed, aims for first ammonia production in 2025 and lower carbon ammonia production by 2026.
In October, Woodside also completed the acquisition of Tellurian and its Gulf Coast Driftwood LNG development opportunity, now renamed Woodside Louisiana LNG. Furthermore, the company signed a sale and purchase agreement with JERA for the supply of approximately 0.4 million tonnes per annum (Mtpa) of LNG for a decade.
In terms of financial strength, Woodside successfully issued $2 billion in senior unsecured bonds to quality debt investors in the U.S. market, with demand peaking at almost four times oversubscribed.
