Woodside Energy reported a 159% year-over-year jump in first-half free cash flow to $352 million as major liquefied natural gas projects progressed toward production milestones. The Australian producer posted an underlying net profit after tax of $1.3 billion and a reported net profit of $1.7 billion for the six months ended June 30, 2026, while operating revenue rose 13% to $7.4 billion.
Cash generation strengthened alongside a 17% increase in average realized prices to $74 per barrel of oil equivalent, driven by Brent crude prices near $100 per barrel and JKM LNG prices at $15 per MMBtu. Operating cash flow totaled $3.0 billion, while EBITDA reached $4.6 billion. Earnings per share climbed 27% to 88 U.S. cents, and return on equity improved to 9.3% from 7.4% in the prior-year period.
The company declared an interim fully franked dividend of $1.1 billion, equivalent to 57 U.S. cents per share, maintaining a payout ratio of 80% at the top end of its 50–80% target range. Since completing its BHP merger in 2022, Woodside has returned approximately $12 billion to shareholders through dividends and buybacks.
Production for the half-year totaled 86.5 million barrels of oil equivalent, or 478,000 boe per day, with operated LNG reliability exceeding 99% at key facilities. The company narrowed its full-year 2026 production guidance to a range of 174–185 million boe, including 2–3 million boe from the Beaumont New Ammonia project, following the $470 million acquisition completion payment.
Major project advancements included Scarborough, now 98% complete with its floating production unit in “ready for start-up” status and first gas achieved. Pluto Train 2 has completed mechanical runs on three of six liquefaction compressors. The Trion development in Mexico reached 64% completion, with a 24-well drilling program initiated in March and three production wells drilled toward an initial phase requiring 18 wells. Topsides and living quarters lifts on the floating production unit were completed.
Louisiana LNG made 28% overall progress, with Train 1 at 35% completion following berth dredging and first mechanical equipment installations. Structural steel erection began on Train 2. Partner capital contributions of $1.7 billion from Stonepeak and Williams reduced Woodside’s exposure to 57% in the project.
Woodside assumed operatorship of the Gippsland Basin from ExxonMobil on July 1, 2026, and expects structural cost reductions of $350 million per year starting in 2028. Unit production costs fell to $8.8 per boe, excluding major turnarounds at Pluto and Okha, where costs were $7.4 per boe. Full-year 2026 capital expenditure is guided at $4.0–$4.5 billion, with production costs forecast between $1.5 billion and $1.8 billion.
The company maintained a gearing ratio of 20.6%, within its 10–20% target range, and repaid a $600 million syndicated term loan ahead of maturity. Credit ratings remained at Baa1 from Moody’s and BBB+ from S&P. Woodside contributed over A$1 billion in Australian taxes and royalties in the half-year, positioning it as the country’s largest payer of Petroleum Resource Rent Tax.
