Woodside has scrapped its plans to invest US$5 billion in new energy projects by 2030 to focus on its core oil and gas business, while reporting improved half-year revenue.
The oil and gas giant reported a 13 per cent increase in half-year operating revenue to US$7.45 billion (AU$10.37 billion) and underlying net profit after tax of US$1.33 billion, up 7 per cent year over year from US$1.25 billion.
The growth was underpinned by half-year production of 86.5 million barrels of oil equivalent (MMboe) and high asset reliability.
The company determined a fully franked interim dividend of 57 US cents per share, representing an 80 per cent payout ratio of underlying profits.
Alongside the financial results, Woodside unveiled a series of strategic realignments to simplify its operations and capital allocation framework.
Chief among these was the decision to retire its 2030 Scope 3 investment and carbon abatement targets, aligning the company’s climate strategy directly with the evolving pace of the global energy transition and commercial customer demand.
“We have taken the disciplined decision to retire our Scope 3 investment and emissions abatement targets. These targets were established in a different market context and based on a different expected pace of the energy transition,” CEO Liz Westcott said during the company’s results briefing.
“The reality is that markets for emerging lower-carbon opportunities, including hydrogen, ammonia, and carbon capture and storage, have developed more slowly than anticipated. Therefore, the targets no longer align with evolving technology, current policy settings and customer demand.”
While the producer affirmed its commitment to its net equity Scope 1 and 2 greenhouse gas reduction goals for 2030, the removal of Scope 3 targets reflects a broader push to position the business for long-term cycle resilience.
To support this refocused strategy, Woodside has initiated a review of its portfolio, announcing the divestment of its Calypso asset, a review of the Beaumont New Ammonia project, and a target to deliver US$350 million in structural annual cost savings from 2028.
Major project execution progressed steadily during the period, with the Scarborough Energy Project reaching 98 per cent completion ahead of its targeted first liquefied natural gas (LNG) cargo in the fourth quarter of 2026.
Offshore Mexico, the Trion project reached 64 per cent completion, targeting first oil in 2028.
Looking ahead, Westside raised its total production full-year guidance to 174 to 185 MMboe from the previous 172 to 186 MMboe.
“To conclude, Woodside’s renewed focus on discipline and value is a considered evolution of our existing strategy and investment proposition,” Westcott said.
“Our operational excellence and financial strength are returning value to shareholders today, while disciplined delivery of our major growth projects is building the production and cash generation platform for tomorrow.”
