Woodside Reports $1.3 Billion Profit as LNG Projects Gain Momentum

Woodside Energy Group (ASX: WDS | NYSE: WDS) posted a net profit after tax (NPAT) of $1.32 billion for the first half of 2025, backed by strong production growth, major project progress, and disciplined capital management. The board declared a fully franked interim dividend of 53 US cents per share, maintaining its payout ratio at 80% of underlying earnings.

Woodside produced 548,000 barrels of oil equivalent per day (99.2 MMboe), a 12% year-on-year increase, supported by the ramp-up of the Sangomar oil field in Senegal. Liquids output surged 44% while LNG plant reliability remained at 96%. Unit production costs fell to $7.7/boe, reflecting efficiency gains across the portfolio.

CEO Meg O’Neill highlighted Sangomar’s contribution, noting it generated nearly $1 billion in revenue in its first year, with production averaging 100,000 barrels per day (80,000 bpd Woodside share).

Growth Projects Advance

Woodside reported significant progress on its sanctioned developments:

Scarborough LNG (WA): 86% complete, first cargo expected in H2 2026. Trion (Mexico): 35% complete, targeting first oil in 2028. Beaumont Ammonia (U.S.): 95% complete.

A key milestone was the final investment decision (FID) on the Louisiana LNG Project, positioning Woodside as a global LNG heavyweight. To fund the development, the company sold a 40% interest in Louisiana LNG Infrastructure LLC to Stonepeak for $5.7 billion, with the partner covering 75% of expected project capex in 2025–26.

Financials & Capital Discipline

Operating revenue: $6.59 billion (+10% YoY) EBITDA: $4.6 billion (+5% YoY) Underlying NPAT: $1.25 billion (down 24% YoY) Free cash flow: $272 million (down 63% YoY) Operating cash flow: $3.34 billion (+40% YoY) Liquidity: $8.43 billion with gearing at 19.5%

The company issued $3.5 billion in U.S. bonds during the half, which were heavily oversubscribed, further strengthening its balance sheet.

Climate & Safety

Woodside reaffirmed it is on track to achieve its 15% Scope 1 and 2 emissions reduction target by 2025 and reported no recordable injuries across Sangomar’s first year of operations.

Outlook

Full-year production guidance was tightened to 188–195 MMboe, while capex (excluding Louisiana LNG) was trimmed to $4.0–4.5 billion. O’Neill said the focus remains on delivering sanctioned projects, while reducing spending on exploration and new energy initiatives.

With strong demand fundamentals for LNG in both the Pacific and Atlantic basins, Woodside is positioning itself as a top-tier LNG supplier while maintaining generous shareholder returns.

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