Woodside reports lower 1H profits on lower LNG price

Woodside Energy reported a drop in its first-half profits amid lower liquefied natural gas prices.

The net result was $1.63 billion, which was 14% lower than the net result for the first half of 2023

The company also posted operating cash flow of $2.39 billion and free cash flow of $740 million for the period. Free cash flow was up 136% on the year.

Chief executive Meg O’Neill noted recent acquisitions the Australian energy major has made, not always to the market’s delight, including Tellurian’s Driftwood LNG project in the US and a clean ammonia project, also in the US.

“Our agreement last month to acquire Tellurian, including its US Gulf Coast LNG Driftwood development, further strengthens our LNG portfolio, complementing our existing position in the Pacific Basin with additional exposure to the Atlantic Basin,” said O ‘Neill. “Woodside expects to leverage its global LNG expertise to unlock this development and enable long-term cash generation.”

Woodside announced the acquisition of troubled Tellurian in July, saying the $1.2 billion deal would help transform the Australian company into a global LNG powerhouse.

For years, Tellurian has been planning to build Driftwood LNG, a production and export terminal on the Calcasieu River south of Lake Charles, Louisiana. Once completed, the terminal would be capable of exporting up to 27.6 million tons of liquefied natural gas annually.

Two weeks after announcing that deal, Woodside said it had entered into an agreement to acquire the OCI clean ammonia project in Beaumont, Texas, for $2.35 billion.

Production of low-carbon ammonia, derived from natural gas associated with carbon sequestration, is targeted for 2026, after the start of carbon capture and sequestration operations. The supply of low-carbon hydrogen depends on the operation of ExxonMobil’s CCS facility, Woodside said at the time.

By Irina Slav for Oilprice.com

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