Woodside Energy reported a 7% rise in underlying net profit after tax to $1.33 billion in the six months ended June 30, exceeding consensus estimates, while scrapping its $5 billion clean energy spending target by 2030.
The Australian oil and gas producer also outlined plans to reduce costs by $350 million from 2028, as it refocuses on its core fossil fuel operations. The decision follows a strategic review of its Beaumont New Ammonia clean energy asset in Texas and the abandonment of the H2OK green hydrogen project in Oklahoma, where Woodside cited insufficient customer support.
Chief Executive Liz Westcott said the company’s previous clean energy targets were set in a different market environment. “These targets were established in a different market context,” she stated. Westcott added that Woodside’s U.S. investments failed to materialize due to a lack of demand, noting, “We made an investment in the U.S... The customers were not there to support that.”
The company maintained its 2026 production forecast of 174 million to 185 million barrels of oil equivalent and reaffirmed capital expenditure guidance of $4 billion to $4.5 billion. Woodside’s average realized price rose to $74 per barrel of oil equivalent in the first half, up from $61.70 a year earlier, supported by supply disruptions tied to geopolitical tensions, including the Iran war and the Strait of Hormuz closure, which disrupted 20% of global oil and LNG supplies.
Woodside declared an interim dividend of 57 cents per share, compared with 53 cents last year. Shares were down 1% at A$33.45 by 0308 GMT, underperforming the S&P/ASX 200 index, which rose 3.57%. The company’s decision to abandon its clean energy ambitions follows a 57.8% shareholder no-vote on its Climate Transition Action Plan in 2021, underscoring investor skepticism toward its decarbonization strategy.
