Major Australian energy producer Woodside has recorded a 24 per cent decline in interim earnings, despite higher production revenues.
The gas and oil giant posted an underlying net profit of $US1.24 billion (A$1.91 billion) for the first half, down from $US1.63 billion (A$2.51 billion) previously.
But the outcome was a little better than the market consensus estimate of $US1.22 billion ($A1.88 billion).
The bottom line result was $US1.32 billion ($A2.03 billion), down 32 per cent.
Weaker commodity prices and other factors weighed on the bottom line and more than offset a major boost in production, which was buoyed by the Sangomar oil project.
A $US445 million ($A684 million) restoration expense and a $US143 million ($A220 million) impairment loss from Woodside’s decision to exit the H2OK proposed liquid hydrogen project in Oklahoma also weighed.
Woodside’s operating revenue increased 10 per cent in the six months ended June 30 to US$6.59 billion ($A10.14 billion).
The company also recorded an 11 per cent rise in half-year production to 99.2 million barrels of oil equivalent.
Woodside will pay an interim dividend of 53 US cents per share, which is lower than the 69 US cents paid out in the prior corresponding half.
But CEO Meg O’Neill said the 80 per cent payout ratio of underlying net profit after tax was still at the top of the range.
“Strong underlying performance of our assets, our robust financial performance, and a focus on disciplined capital management have enabled us to maintain our interim dividend payout ratio at the top end of the payout range,” she said.
Woodside also logged progress on the Scarborough Energy Project in Western Australia, which is now 86 per cent complete ahead of its first shipments of LNG in the second half of 2026.
Woodside’s share price was tracking lower before noon, down 1.5 per cent at $26.49.
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