Woodside recorded a half-year reported net profit after tax (NPAT) of US$317 million. Underlying NPAT was US$354 million, up 17% on the corresponding period in 2020. Operating revenue rose 31% year-on-year to $2,504 million primarily due to higher realised prices.

The directors have declared an interim dividend of 30 US cents per share (cps), representing an approximately 80% payout ratio of underlying NPAT.

Woodside CEO Meg O’Neill said the result reflected the strong rebound in market conditions following the challenges and uncertainty brought on by COVID-19 in 2020.

“Our revenue was buoyed by higher realised prices driven by the recovery in demand for LNG and oil. Sales volumes increased by 6% to 53.9 million barrels of oil equivalent for the half, as we increased trading activity in response to favourable market conditions.

“Woodside achieved significant progress towards the targeted final investment decision this year for the Scarborough and Pluto Train 2 developments while executing the Sangomar oil project and achieving solid increases in revenue and profit from its low-cost operations.

“Technical work to support execution readiness of the Scarborough and Pluto Train 2 developments is complete, commercial agreements are approaching finalisation and most regulatory approvals have been secured.

“We completed the Scarborough cost update which has incorporated value-accretive scope changes to deliver an approximately 20% increase in offshore processing capacity and provides cost certainty ahead of targeted FID.

“We have launched the sell-down process for up to 49% of Pluto Train 2 and are testing the market for opportunities to reduce Woodside’s interest in the Scarborough resource.

“The Scarborough development is globally competitive and has the potential to deliver significant value to shareholders while supporting the world’s transition to lower-carbon energy.

“Work on our Sangomar offshore oil project continued on schedule. Support facilities in Dakar have been commissioned and a significant milestone was reached in July with the start of the 23-well development drilling campaign. We remain on track to deliver targeted first oil in 2023.

“We have commenced the formal process to sell down our equity in Sangomar.

“During the half Woodside generated $1,318 million of cash flow from operating activities, delivered positive free cash flow of $311 million and our credit ratings of Baa1 and BBB+ were both reaffirmed by Moody’s and S&P Global respectively,” she said.

Financial headlines for H1 2021

• Net profit after tax of $317 million.
• Underlying net profit after tax of $354 million.
• Positive free cash flow of $311 million.
• Liquidity of $6,038 million.
• Declared an interim dividend of 30 US cents per share.
• Strong investment grade credit ratings of Baa1 and BBB+ were reaffirmed by Moody’s and S&P Global respectively.

Operational performance

• Achieved strong production performance from Pluto LNG and Wheatstone.
• Finalised arrangements with the Western Australian Government to process third-party gas from the Pluto fields and the Waitsia project through KGP.
• Achieved record premiums to Dated Brent for two cargoes; a Vincent crude cargo, and a Wheatstone condensate cargo.

Executing a clear plan

• Completed the cost update in August 2021 for the Scarborough development, in preparation for the targeted FID later this year.
• Launched sell-down processes for Scarborough, Pluto Train 2 and Sangomar.
• Commenced the drilling campaign for the Sangomar Field Development Phase 1 in July 2021.
• Completed the acquisition of FAR’s interest in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture.

KeyFacts Energy: Woodside Australia country profile