REG - Woodside Energy Grp. - Half-Year 2023 Report
22/08/2023 07:00
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RNS Number : 0095K Woodside Energy Group Ltd 22 August 2023
Woodside Energy Group Ltd
ACN 004 898 962
Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T +61 8 9348 4000
www.woodside.com
ASX: WDS
NYSE: WDS
LSE: WDS
Announcement
Tuesday, 22 August 2023
HALF-YEAR REPORT FOR PERIOD ENDED 30 JUNE 2023
Safety performance
· There was a fatality in June 2023 at the North Rankin Complex.
Woodside's investigation is ongoing. Immediate actions have been implemented
and preliminary lessons shared with industry
Financial highlights for H1 2023
· Record H1 net profit after tax of US$1,740 million
· Underlying net profit after tax of US$1,896 million
· Positive free cash flow of US$294 million
· Record Australian tax and royalty payments of A$3,654 million
· Liquidity of US$7,509 million
· Declared an interim dividend of 80 US cents per share,
representing a half-year annualised dividend yield of 6.9% 1
Operational highlights
· Delivered record H1 production of 91.3 MMboe
· Achieved first production at the Mad Dog Phase 2 Argos platform
in April 2023
· Completed major turnaround at Pluto LNG on schedule
Business highlights
· The Scarborough development was 38% complete; the floating
production unit (FPU) topsides and pipeline fabrication and Pluto Train 2
module fabrication and foundation site works progressed
· Agreed to sell a 10% interest in the Scarborough Joint Venture to
LJ Scarborough Pty Ltd (LNG Japan) and established a broader strategic
relationship which includes potential LNG offtake and collaboration on global
opportunities in new energy 2
· The Sangomar project was 88% complete; 12 of 23 wells were
drilled and completed and the floating production storage and offloading
(FPSO) topsides integration and pre-commissioning works continued in Singapore
· Approved a final investment decision (FID) on the Trion project.
The development remains subject to regulatory approval of the field
development plan (FDP)
· Approved a FID on the Julimar-Brunello Phase 3 project
New energy & carbon highlights
· Progressed key project activities for H2OK to support targeted
FID readiness in 2023
· Progressed development of the solar generation, battery energy
storage and transmission infrastructure required for the Woodside Solar
project in support of targeted FID readiness in 2023
· Awarded contract for the engineering and fabrication of the
hydrogen production equipment for Hydrogen Refueller @H2Perth
· Progressed front-end engineering design (FEED) work on Phase 1 of
the South East Australia Carbon Capture and Storage (SEA CCS) project
Summary
Woodside recorded a half-year net profit after tax (NPAT) of US$1,740 million.
Underlying NPAT was US$1,896 million, up 4% on the corresponding period in
2022, reflecting a full period of results with Woodside's expanded operations
portfolio. Operating revenue rose 27% period-on-period to US$7,400 million.
The Directors have declared an interim dividend of 80 US cents per share
(cps), representing an approximately 80% payout of underlying NPAT.
Woodside CEO Meg O'Neill said the tragic death of a contractor employee at the
North Rankin Complex in early June overshadowed a strong financial and
underlying operational performance in the first half of the year.
"The loss of our colleague was a tragedy for his family and friends and has
had an emotional impact on everyone at Woodside. Investigations into the
incident by Western Australian Police and the National Offshore Petroleum
Safety and Environmental Management Authority (NOPSEMA) are ongoing, as are
Woodside's internal investigations.
"We have implemented changes to our operational practices based on the
preliminary findings of those investigations and shared our learnings with the
broader industry via the Safer Together collaboration hub.
"Woodside's safety performance over the past two years has been below the
standard we set for ourselves. We know we must do better and are resolved to
strive for a return to leading safety performance.
"Our strong financial performance and our focus on disciplined capital
management has enabled us to maintain our interim dividend payout ratio
through the cycle.
"Woodside's gearing remained low at 8.2% at the end of the first half. Our
active management of the debt portfolio positions Woodside's balance sheet
well as we invest in future production.
"Woodside also continues to make a significant contribution to the economic
prosperity of the communities where we operate. Woodside's total tax and
royalty payments to state and federal governments in Australia in the first
half was A$3,654 million.
"Production for the first half was a record at 91.3 million barrels of oil
equivalent. The Pluto LNG facility delivered an outstanding 99.9% reliability
rate in the five months prior to the planned maintenance turnaround, which was
completed on schedule.
"First production was achieved at the Argos platform at Mad Dog Phase 2 in the
Gulf of Mexico and we expect output from the facility to ramp up over the
remainder of the year.
"During the half a successful appraisal well was drilled in the southwest
portion of the Mad Dog field in the Gulf of Mexico and a multi well tie back
to Argos is being evaluated.
"In June, Woodside took a FID on the Trion oil development offshore Mexico.
The development leverages our proven expertise in deepwater project execution
and is expected to deliver strong returns to Woodside shareholders as well as
economic and social benefits to Mexico.
"Following FID, Woodside executed a contract with South Korea's Hyundai Heavy
Industries for the construction of the Trion floating production unit. We are
looking forward to the approval of the Trion field development plan, expected
to be announced by the Mexican regulator in the second half of the year.
"We also took FID during the period at Julimar-Brunello Phase 3, a new source
of gas for the non-operated Wheatstone facility in Western Australia.
"Work on the Scarborough and Pluto Train 2 project progressed well during the
first half. Following acceptance of the Scarborough Trunkline Installation
(State Waters) Environmental Plan in April, shore crossing preparations at
Pluto commenced and are now nearing completion.
"Two significant milestones were achieved for Scarborough subsequent to the
end of the half, with NOPSEMA approving the Environmental Plan for the marine
seismic survey and the announcement of the sale of a 10% interest in the
offshore joint venture to LNG Japan. The new strategic relationship with LNG
Japan also includes the potential for LNG offtake and collaboration on
opportunities in new energy.
"While identification of the need for remedial work on the Sangomar floating
production and offloading facility was disappointing, we are confident that
undertaking the rectifications in the shipyard in Singapore will facilitate a
safe and efficient start-up to allow first oil in mid-2024.
"Progress has also been made on our proposed new energy projects. Woodside is
actively marketing hydrogen offtake from our proposed H2OK liquid hydrogen
project in Oklahoma, in support of our target of being ready to take a FID
before year-end.
"In Australia we are aiming to be ready to take FID in the second half of 2023
on the Woodside Solar project, which is expected to supply around 50 MW of
energy to Pluto LNG.
"During the half Woodside demonstrated its commitment to providing energy
security to Australia's domestic gas markets, executing several agreements for
the total supply of around 120 petajoules of pipeline gas to retailers and
industrial users in both the eastern states and Western Australia. Delivery of
this gas is expected to take place over the period from end-2023 to 2026," she
said.
Financial summary
Key metrics
H1 H1 Change
2023
2022 3
%
Operating revenue $ million 7,400 5,810 27%
EBITDA excluding impairment 4 $ million 4,888 3,971 23%
EBIT(4) $ million 2,791 2,982 (6%)
Net profit after tax (NPAT) 5 (, 6 ) $ million 1,740 1,640 6%
Underlying NPAT(4) $ million 1,896 1,819 4%
Net cash from operating activities 7 $ million 2,931 2,506 17%
Investment expenditure(4, 8 , 9 ) $ million 2,818 1,550 82%
Capital expenditure(4,8, 10 ) $ million 2,631 1,509 74%
Exploration expenditure(4,9) $ million 187 41 356%
Free cash flow(4,7, 11 ) $ million 294 2,551 (88%)
Dividends distributed $ million 1,519 1,018 49%
Interim dividend declared US cps 80 109 (27%)
Key ratios
Earnings US cps 91.7 145.5 (37%)
Gearing(4) % 8.2 6.8 21%
Production 12
Gas MMboe 63.5 41.9 52%
Liquids MMboe 27.8 13.0 114%
Total MMboe 91.3 54.9 66%
Gas MMboe 72.0 47.8 51%
Liquids MMboe 26.8 11.8 127%
Total MMboe 98.8 59.6 66%
Appendix 4D
Results for announcement to the market
More information is available on page 45
US$ million
Revenue from ordinary activities Increased 27% 13 to 7,400
Profit from ordinary activities after tax attributable to members Increased 6%(13) to 1,740
Net profit for the period attributable to members Increased 6%(13) to 1,740
Interim dividend - fully franked 80 US cps H1 2023
Record date for determining entitlements to the dividend 1 September 2023
Net profit after tax reconciliation
The following table summarises the variance between the H1 2022 and H1 2023
results for the contribution of each line item to NPAT.
2022 H1 reported NPAT $1,640 million
Sales revenue - volume from former BHPP assets +$2,532 million Additional five months of contribution from former BHPP assets
Sales revenue - price -$878 million Lower realised prices across various price markers
Sales revenue - volume other -$64 million Reduction primarily due to the planned major turnarounds
Cost of production -$500 million Increase primarily driven by additional five months of contribution from
former BHPP assets
Oil and gas properties depreciation and amortisation -$1,020 million Increase primarily driven by additional five months of contribution from
former BHPP assets
Other cost of sales -$114 million Increase driven by the derecognition and unwind of the Corpus Christi onerous
contract provision in H1 2022
Other income -$364 million Decrease driven by the gain on Pluto Train 2 sell-down recognised in H1 2022
General, administrative and other costs +$305 million Decrease primarily driven by merger transaction costs recognised in H1 2022
Impairment losses -$68 million Recognition of impairment loss due to the reduction in future Pyrenees
production volumes
Income tax and PRRT expense +$186 million Decrease primarily driven by recognition of the Trion deferred tax asset (DTA)
offset by the derecognition of the Pluto PRRT DTA
Other expenses +85 million
2023 H1 reported NPAT $1,740 million
2023 H1 NPAT adjustments +$156 million Adjustment for derecognition of Pluto PRRT DTA, the recognition of the
Pyrenees impairment loss and the recognition of the Trion DTA
2023 H1 underlying NPAT $1,896 million
Capital management
Interim dividend and dividend reinvestment plan
A 2023 interim fully franked dividend of 80 US cents per share (cps) has been
declared. The total amount of the interim dividend payment is $1,519 million
which represents approximately 80% of underlying NPAT for the first half of
2023, reflecting Woodside's strong operational performance. 14
The dividend reinvestment plan (DRP) was suspended on 27 February 2023.
Liquidity and debt service
During the half, Woodside generated $2,931 million of cash flow from operating
activities and delivered positive free cash flow of $294 million.14, 15
Woodside maintained its standby debt facilities at $4,050 million. Liquidity
at the end of the period was $7,509 million and Woodside's drawn debt at
the end of the period was $5,109 million. Net debt at the end of the period
increased 35% to $3,220 million, in line with planned capital expenditure.14
Woodside will continue to actively manage its debt portfolio throughout 2023.
Balance Sheet
Woodside's commitment to an investment grade credit rating remains unchanged
and supports Woodside's aim of providing sustainable returns to shareholders
and investing in future growth opportunities, in accordance with the capital
allocation framework.
Woodside's gearing at the end of 2022 was 1.6%, which is below our target
range of 10% to 20%. The reduced cashflows driven by lower realised price,
payments for capital and exploration expenditure, tax payments as well as the
2022 final dividend payment resulted in Woodside's gearing increasing to 8.2%
at the end of H1 2023.
A low level of net debt positions Woodside's balance sheet for its expected
future capital expenditure. As a result, Woodside's gearing may at times fall
outside the target range of 10% to 20% as the balance sheet is managed through
the investment cycle.(14)
Commodity price risk management
Woodside hedges to protect the balance sheet against downside commodity price
risk, particularly during periods of high capital expenditure.
As at 30 June 2023, Woodside has placed oil price hedges for:
· approximately 21.8 MMboe of 2023 production at an average price
of $74.5 per barrel of which approximately 11.2 MMboe has been delivered
· a further 6.2 MMboe of 2024 production at an average price of
approximately $75.2 per barrel.
Subsequent to the period, Woodside placed oil price hedges on a further 23.1
MMboe of 2024 production and has now hedged approximately 29.3 MMboe of 2024
production at an average price of approximately $75.7 per barrel.
Woodside has also placed a number of hedges for Corpus Christi LNG volumes to
protect against downside pricing risk. These hedges are Henry Hub and Title
Transfer Facility (TTF) commodity swaps. Approximately 81% of Corpus Christi
volumes for the remainder of 2023 and approximately 29% of 2024 volumes have
reduced pricing risk as a result of hedging activities.
Operations
Pluto LNG
Pluto LNG is a gas processing facility in the Pilbara region of Western
Australia, comprising an offshore platform and one onshore LNG processing
train.
Woodside's share of Pluto production in the first half of 2023 was 23.5 MMboe.
This was a 3% decrease compared to the first half of 2022 due to planned
turnaround activities. Sustained high reliability of 99.9% in the five months
prior to the planned turnaround and the delivery of Pluto gas through the
Pluto-Karratha Gas Plant (KGP) Interconnector (Interconnector) contributed to
the strong overall production performance.
Woodside successfully completed a major turnaround on the onshore and offshore
facilities, executing essential maintenance scopes to support continued safe,
reliable and efficient production. The major turnaround included the
installation of infrastructure to enable processing of Scarborough gas and
tie-ins for Pluto Train 2.
Woodside is pursuing the opportunity to reduce Scope 1 greenhouse gas
emissions at Pluto LNG by utilising solar energy from the proposed Woodside
Solar project. The major turnaround included installation of additional
electrical tie-in points for potential carbon-to-products value streams and
for the importation of solar energy from Woodside Solar.
The Pluto Remote Operations Centre in Perth became fully operational in June
2023 with day-to-day operations of Pluto LNG now being undertaken remotely by
our Perth-based team.
Woodside is operator and holds a 90% participating interest.
North West Shelf Project
The North West Shelf Project (NWS) consists of three offshore platforms and
the onshore Karratha Gas Plant, which includes five onshore LNG processing
trains. It produces LNG, condensate, pipeline gas and natural gas liquids
(NGLs).
Woodside's share of production in the first half of 2023 was 22.7 MMboe. This
was a 73% increase compared to the first half of 2022 due to the increase of
Woodside's equity share following completion of the merger in June 2022. Gas
processing operations through the Interconnector continued with 5.4 MMboe of
Pluto gas processed in H1 2023.
KGP is expected to have increased ullage in 2024 due to a combination of
natural field decline and limited third-party gas processing demand. To reduce
operating costs, NWS is assessing taking one LNG train offline. Discussions
continue between NWS and other resources owners for the processing of
third-party gas and NWS continues to evaluate infill and nearfield
opportunities to utilise ullage at KGP.
NWS is on track to receive Waitsia gas for processing.
The Browse and NWS joint ventures are progressing negotiation of key
commercial terms in support of the Browse to NWS development concept. Browse
is a large backfill opportunity to fill long-term NWS ullage due to the
quantity and the compatibility of the gas resource with the KGP facilities.
The NWS Project Extension proposal remains subject to an ongoing WA statutory
appeals process. The proposal supports the long-term operations and future
processing of third-party gas resources. The Commonwealth Environment
Protection and Biodiversity Conservation Act (EPBC) assessment remains paused
until the appeals process is completed. Engagement with the Commonwealth
regulator continues.
Woodside is operator and holds a 33.33% participating interest. 16
Wheatstone and Julimar-Brunello
Wheatstone is an LNG processing facility near Onslow, Western Australia,
comprising an offshore production platform and two onshore LNG production
trains. It processes gas from several offshore gas fields including Julimar
and Brunello.
Woodside's share of Wheatstone production in the first half of 2023 was 6.6
MMboe. This was a 27% increase compared to the first half of 2022, which was
impacted by a major facility turnaround.
The FID on Julimar-Brunello Phase 3 was approved in April 2023. The project
involves the drilling of up to four development wells tied-back from the
Julimar field to the existing Julimar field production system.
Woodside is operator and holds a 65% participating interest in the
Julimar-Brunello fields. Woodside holds a 13% non-operating interest in the
Wheatstone project.
Bass Strait
The Bass Strait is located in the south-east of Australia and produces oil and
gas through a network of offshore platforms, pipelines and onshore processing
facilities. The Bass Strait assets include the Gippsland Basin Joint Venture
(GBJV) and Kipper Unit Joint Venture (KUJV). Kipper Unit production is
processed by the GBJV under a processing agreement.
Woodside's share of production from the Bass Strait was 10.9 MMboe in H1 2023,
an increase from 3.3 MMboe in H1 2022. 17 All gas produced by the GBJV is
supplied into the eastern Australian domestic gas market, supporting
Australia's energy needs.
The GBJV continued significant decommissioning activity through the period,
permanently plugging 10 wells on the Flounder platform and removing conductors
of 31 wells on the Fortescue platform. The GBJV also executed an agreement to
charter a fourth semi-submersible vessel to support decommissioning activities
from the end of 2023.
Woodside holds a 50% non-operating interest in the GBJV and a 32.5%
non-operating interest in the KUJV.
Other Australian oil and gas assets
Woodside operates three floating production storage and offloading (FPSO)
facilities off the north-west coast of Western Australia. These are the Okha
FPSO (Woodside interest: 50%), Ngujima-Yin FPSO (Woodside interest: 60%) and
Pyrenees FPSO (Woodside interest: 40% in WA-43-L and 71.4% in WA-42-L).
Woodside's share of production from the FPSO assets was 3.1 MMboe in H1 2023.
This was a 35% decrease from H1 2022 primarily due to the planned five-yearly
Ngujima-Yin FPSO maintenance turnaround performed in Singapore. Production on
Ngujima-Yin recommenced in July 2023.
Macedon (Woodside interest: 71.4%), also operated by Woodside, is a gas
project located near Onslow, Western Australia which produces pipeline gas for
the Western Australian domestic gas market.
Woodside's share of production from Macedon was 4.1 MMboe, up from 0.7 MMboe
in H1 2022.(17) The Macedon facility delivered approximately 17% of the
Western Australian domestic gas market supply in H1 2023.
Gulf of Mexico
Woodside interests in the US Gulf of Mexico includes the conventional oil and
gas developments of the Shenzi tension leg platform (TLP) (operated; Woodside
interest: 72%), Atlantis floating production unit (FPU) (non-operated;
Woodside interest: 44%), and Mad Dog A-spar and Argos FPU (non-operated;
Woodside interest: 23.9%).
Woodside's share of production from the Gulf of Mexico assets was 14.8 MMboe
in H1 2023.
First production was successfully achieved in April 2023 at the Argos platform
for Mad Dog Phase 2, a development on the southern flank of the Mad Dog field.
Production ramp-up is expected to continue through 2023.
A successful appraisal well, SWX4, was drilled in the south-west part of the
Mad Dog field. An extension of the current development through a multi-well
tie-back to Argos is being evaluated.
Both wells were completed on Shenzi North, a two-well subsea tieback to the
Shenzi TLP. Subsea activities are ongoing with one of three campaigns
complete, installing manifolds and high-integrity pressure protection system
packages. The project is ahead of the original 2024 target schedule and is now
expecting first oil in 2023.
Greater Angostura
Greater Angostura includes the Angostura and Ruby conventional oil and gas
fields, located offshore Trinidad and Tobago. The development includes an
offshore central processing facility and five well head platforms.
Woodside continues to pursue opportunities to maximise value and safely
optimise production and operating cost. Woodside's share of production from
Greater Angostura was 5.6 MMboe in H1 2023.
Woodside is operator of both fields and holds a 45% participating interest in
the Angostura field and a 68.5% participating interest in the Ruby field.
Decommissioning
The Enfield plug and abandonment campaign continued with eight wells
permanently plugged. As at the end of the period, the plugging of 13 of 18
wells and removal of 16 of 18 xmas trees have been completed.
Preparations for the planned removal of the Nganhurra riser turret mooring
(RTM) in Q4 2023 remain on track, with the Nganhurra RTM decommissioning
environmental plan being accepted by the regulator in late July 2023.
Woodside has awarded several major contracts for the decommissioning of subsea
infrastructure at the Enfield, Griffin (including the RTM), Stybarrow
(including the Disconnectable Turret Mooring) and Echo Yodel oil and gas
fields offshore Western Australia. Award of these contracts support
commencement of major offshore activities in Q4 2023.
Marketing and Trading
A long-term gas sale and purchase agreement (GSPA) with Perdaman Chemicals and
Fertiliser Pty Ltd became unconditional in April 2023. Supply under the GSPA
is for approximately 130 terajoules per day of gas over a term of 20 years,
commencing upon commissioning of the plant expected in 2026 or 2027.
Woodside executed several natural gas sale agreements for the combined supply
of approximately 120 petajoules of pipeline gas, to both eastern and Western
Australian domestic customers including retailers and commercial and
industrial users. Delivery is expected to take place from Q4 2023 to 2026.
In July 2023, the mandatory Gas Code of Conduct (the Code) which applies to
Australia's east coast gas market commenced. The Code was introduced by the
Australian Government following consultation with stakeholders. Woodside is
working to ensure it satisfies its compliance obligations under the code.
In August 2023, Woodside and LNG Japan Corporation entered into a non-binding
heads of agreement for the sale and purchase of 12 LNG cargoes per year
(approximately 0.9 million tonnes per annum) for ten years commencing in 2026.
This agreement is part of a broader strategic relationship with LNG Japan and
its parent entities which includes the sale of a 10% interest in Scarborough
and collaboration on opportunities in new energy.
Projects
Scarborough
The Scarborough gas field is located in the Carnarvon Basin, approximately 375
km off the coast of Western Australia. The development includes installation
of a FPU with eight wells drilled in the initial phase and 13 wells drilled
over the life of the Scarborough field.
Expansion of Pluto LNG includes the construction of a second LNG train (Pluto
Train 2), installation of additional domestic gas processing facilities and
supporting infrastructure, and modifications to Pluto Train 1 to allow it to
process Scarborough gas.
The Scarborough upstream pipeline manufacturing was completed in H1 2023, with
insulation coating work continuing in Indonesia. Fabrication of the FPU
topsides and hull continued to progress.
Following acceptance of the Scarborough Trunkline Installation (State Waters)
Environmental Plan in April 2023, shore crossing preparations at Pluto
commenced and are nearing completion. Subsea flowline fabrication also
continued in preparation for reeling.
The National Offshore Petroleum Safety and Environmental Management Authority
(NOPSEMA) accepted the Marine Seismic Survey Environment Plan in July 2023,
subject to conditions. Engagement with NOPSEMA continued regarding the
remaining Commonwealth Environment Plans.
Pluto Train 2 module fabrication and foundation site works progressed and the
construction accommodation village was completed and is now fully available
for use.
Pluto Train 1 modifications pre-execution phase activities progressed with
design activities and market engagement for long-lead items procurement
underway.
In August 2023, Woodside entered into a sale and purchase agreement with LNG
Japan for the sale of a 10% non-operating participating interest in the
Scarborough Joint Venture (the Transaction). 18 The purchase price is US$500
million, subject to adjustments. LNG Japan will also reimburse Woodside for
its share of expenditure for the Scarborough project from 1 January 2022, the
effective date of the Transaction. On completion of the Transaction, expected
in the first quarter of 2024, the estimated total consideration comprising the
purchase price, reimbursed expenditure and escalation is approximately US$880
million. On completion, Woodside will hold a 90% interest in the Scarborough
Joint Venture and remain as operator.
Woodside is targeting first LNG cargo in 2026.
Woodside is operator and has a 100% participating interest in Scarborough and
a 51% participating interest in Pluto Train 2.
Sangomar Field Development Phase 1
The Sangomar Field Development Phase 1 is Senegal's first offshore oil project
and includes a stand-alone FPSO and supporting subsea infrastructure. It is
designed to allow the tie-in of subsequent phases.
During the first half of 2023, FPSO topside integration and pre-commissioning
work progressed at the Keppel Shipyard in Singapore.
In Senegal, the subsea installation campaign progressed, with installation 76%
complete and the overall subsea work scope 95% complete at the end of the
period. Installation and testing of the rigid flowlines, totalling 101 km in
length, were successfully and safely completed.
The drilling and completions campaign involves the drilling of 23 production,
gas and water injection wells. At the end of June 2023, 12 wells were complete
and 11 further wells were partially complete.
In May 2023, the Sangomar Joint Venture approved the drilling of an additional
well to optimise field recovery. The drilling is expected to be completed by
the Ocean BlackRhino while the drillship is offshore Senegal completing the
Sangomar Field Development Phase 1 drilling.
Woodside is targeting first oil in mid-2024.
Woodside is operator and has an 82% participating interest in the project.
Trion
Trion is an oil field located approximately 180 km off the Mexican coastline
and 30 km south of the US/Mexico maritime boarder. The Trion project includes
a semi-submersible FPU capable of producing and transferring 100,000 barrels
of oil per day to a floating storage and offloading (FSO) vessel. Oil from the
FSO is expected to be exported to the market, with excess gas transferred to
existing offshore gas export infrastructure. Key technical, commercial, and
regulatory activities progressed in the first half of 2023 and Woodside made a
FID on the development in June 2023. Woodside's net equity Scope 1 and Scope 2
emissions reduction targets remain unchanged by this decision. 19 (, 20 )
Long-lead items were placed on order for topsides rotating equipment and key
manufacturing slots. Early engineering was initiated with the nominated FPU
engineering subcontractors in May 2023 and the FPU engineering, procurement
and construction contract was executed with Hyundai Heavy Industries in
June 2023. The FPU will be constructed in the Republic of Korea.
Subsequent to the period, the rig contract was awarded and the FPU and FSO
installation contract was awarded. The remaining major contracts will continue
to be executed progressively.
The field development plan (FDP) was approved by the Trion Joint Venture in
June 2023 and has been submitted to the regulator. The FDP is under review by
the regulator and approval is expected in the second half of 2023.
Woodside is targeting first oil in 2028.
Woodside is operator and has a 60% participating interest in the project.
Exploration and Development
Browse
The Browse development comprises the Calliance, Brecknock and Torosa gas and
condensate fields located approximately 425 km north of Broome, Western
Australia.
The CCS infrastructure to abate Browse reservoir CO(2) has been incorporated
into the development concept and regulatory approval processes are ongoing.
Commercial discussions continue between the Browse and NWS joint ventures to
support the processing of Browse resources through the NWS Project's Karratha
Gas Plant.
We continue to engage the regulator on environmental approvals.
Woodside is operator and holds a 30.6% participating interest.
Calypso
Calypso is located approximately 220 km off the coast of Trinidad in 2,100m
water depth. The resource comprises several gas discoveries in Block 23(a) and
Block TTDAA 14. The development is located in a region with existing
infrastructure and a favourable demand outlook.
In the half, Woodside completed conceptual studies to select an infield host
as the preferred development concept. Pre-FEED engineering is expected to
commence in the second half of 2023 to mature the definition of the concept.
Marketing and commercial discussions continue with key stakeholders to
evaluate options to monetise the resource.
Woodside is operator and holds a 70% participating interest.
Sunrise
The Sunrise development comprises the Sunrise and Troubadour gas and
condensate fields which are located approximately 450 km north-west of Darwin
and 150 km south of Timor-Leste.
The Sunrise Joint Venture participants continue to engage the Australian and
Timor-Leste Governments on a new Greater Sunrise Production Sharing Contract
(PSC), which is required under the Maritime Boundary Treaty between
Timor-Leste and Australia. The Sunrise Joint Venture also announced a
commitment to undertake a concept select study program for the development of
the Greater Sunrise fields in parallel with the ongoing PSC discussions.
Woodside is operator and holds a 33.44% participating interest.
Exploration
Woodside continued to build its position in the US Gulf of Mexico, acquiring
five leases (four operated and one non-operated) in lease sale 259. Woodside
also acquired a 44% working interest in two leases in Green Canyon and spudded
the Spinel well with co-owner and operator BP in early June 2023.
Woodside is planning to spud the Gemtree exploration well in the second half
of 2023. Gemtree is a potential tie back to Wheatstone via Julimar Brunello.
The Egyptian regulator approved Woodside's acquisition of a 27% interest in
two non-operated blocks in the Herodotus Basin. Subsequent to the period,
Woodside and the co-owners elected to enter the second exploration phase for
one of the blocks.
In March, Woodside signed an option agreement to acquire at least a 56%
interest in Petroleum Exploration License 87, located offshore Namibia in the
Orange Basin. Seismic acquisition was completed in May 2023 and a decision on
exercising the option to enter will follow evaluation of seismic data.
Woodside also continued to optimise its exploration portfolio, exiting blocks
that are no longer considered prospective. This included a decision to exit
Block 5 in deepwater Trinidad & Tobago and completing formal exit
activities in Canada, Republic of Korea and Myanmar Block A-6.
New energy and carbon solutions
Woodside's new energy strategy is centred on building relationships across the
value chain and developing profitable solutions to meet customer requirements
that have the ability to scale to match the pace of the energy transition. 21
We are working with customers to develop demand for new sources of energy,
while leveraging our competitive advantage as a safe and reliable producer and
supplier of energy to customers across the globe.
New energy collaboration
As part of its strategic collaboration with LNG Japan, Woodside entered into
non-binding agreements to collaborate with Sumitomo Corporation and Sojitz
Corporation on global opportunities in new energy which could include ammonia,
hydrogen, carbon capture and storage (CCS) and carbon management technology.
H2OK
H2OK is a proposed liquid hydrogen project to be located in Ardmore, Oklahoma
with an expected capacity of 60 tonnes per day (tpd) of liquid hydrogen
produced through electrolysis. The project is initially targeting the supply
of hydrogen to the heavy transport sector.
Woodside has progressed contracting activities for the plant construction
scope and other schedule critical packages. In May 2023, Woodside purchased 94
acres of land in the Westport Industrial Park in Ardmore, Oklahoma, for the
proposed H2OK facility.
Woodside is actively marketing hydrogen offtake and is advancing a number of
agreements in support of FID readiness in 2023.
Woodside is operator and holds a 100% participating interest.
H2Perth
H2Perth is a proposed hydrogen and ammonia production facility to be located
in Perth, Western Australia. Phase 1 of the project is targeting up to 2,700
tpd of ammonia produced through gas reforming and electrolysis. It is
targeting supply to local industry and international users. Subsequent phases
have the potential to expand to 8,900 tpd by increasing the electrolysis
component.
Woodside submitted primary environmental approval application documents to
both the Commonwealth and Western Australian regulators in May 2023.
Woodside is operator and holds a 100% participating interest.
Hydrogen Refueller @H2Perth
The Hydrogen Refueller @H2Perth is a proposed self-contained hydrogen
production, storage and refuelling facility, to be built on approximately 1.5
ha of industrial land adjacent to Woodside's proposed H2Perth project.
Woodside is targeting production at the Refueller of 0.2 tpd of gaseous
hydrogen, with the potential to scale up to a targeted 1.0 tpd. Woodside is
targeting the supply of hydrogen to Western Australian industrial and public
customers.
In H1 2023, Woodside awarded a contract for the engineering and fabrication of
the hydrogen production equipment and submitted primary Western Australian
environmental approval documents. Woodside also executed an agreement with the
State of Western Australia for funding under the Hydrogen Fuelled Transport
Program for the Hydrogen Refueller @H2Perth.
Woodside is operator and holds a 100% participating interest.
H2TAS
Woodside has a proposed renewable ammonia and hydrogen production facility to
be located in the Bell Bay area of Tasmania. H2TAS is planned to be a phased
development, targeting an initial capacity of up to 550 tpd of ammonia.
Ammonia would be produced through electrolysis, utilising a combination of
wind and hydroelectric power.
Woodside continues to evaluate renewable power solutions and offtake options
that would enable the project to progress.
Woodside Solar
Woodside is progressing the proposed Woodside Solar project, which plans to
generate electricity from a solar photovoltaic farm located in an industrial
estate approximately 15 km south-west of Karratha in Western Australia,
complemented by a battery energy storage system. The facility is expected to
initially supply approximately 50 MW of solar energy to Pluto LNG potentially
reducing Woodside's Scope 1 greenhouse gas emissions with potential to expand
the project in the future.
In H1 2023, Woodside progressed engineering development of the solar
generation, battery energy storage and transmission infrastructure required
for the power opportunity and completed heritage surveys for the proposed
initial solar development site. Engagement with local, state and commonwealth
authorities on key development and environmental approvals continued.
In preparation for potential solar energy import to Pluto LNG, key electrical
tie-in points were installed during the 2023 Pluto turnaround.
Woodside is targeting FID readiness in 2023.
Woodside is operator and holds a 100% participating interest.
Southern Green Hydrogen
Southern Green Hydrogen is a proposed hydrogen and ammonia facility to be
located in Southland, New Zealand. The proposal is targeting up to 1,400 tpd
of ammonia and is expected to utilise renewable power to produce hydrogen and
ammonia for export and domestic supply.
Carbon capture and storage (CCS)
Woodside, as a participant in various joint ventures, holds three greenhouse
gas assessment permits. These permits enable carbon capture and storage
assessments in the Browse Basin (operated), Northern Carnarvon Basin
(operated) and Bonaparte Basin (non-operated).
Woodside is progressing activities to support submission of the environmental
referral for the Northern Carnarvon CCS. These activities include
environmental surveys and preparations for heritage surveys.
Woodside is also a participant in the SEA CCS hub, located in the Gippsland
Basin off the coast of Victoria. Phase 1 of the project, which aims to utilise
existing infrastructure to capture and store CO(2) in the depleted Bream
reservoir located offshore Victoria, progressed to FEED in H1 2023.
Carbon origination
Woodside established a carbon business in 2018 to develop a carbon credits
portfolio and our own carbon origination projects in support of our emissions
reduction targets and regulatory obligations. We acquire carbon credits
through market purchase and through the development of our own carbon
origination projects. The carbon portfolio is dynamic and we continue to
develop and seek to optimise it, to give Woodside flexibility in response to
changes in regulatory requirements and corporate climate strategy as they
arise.
In 2020, Woodside commenced the Native Reforestation Project, with the aim of
originating our own biodiverse carbon plantings in Western Australia. During
H1 2023, Woodside began planting activities on approximately 5,600 ha of land
at Woodside owned properties. The full year program is forecast to plant over
2.7 million mixed biodiverse seedlings. These activities were 40% complete by
the end of H1 2023. The project has a potential to sequester approximately
2,000 kt CO(2)-e over 25 years.
Other new energy investments
Woodside and Heliogen have a project agreement to deploy a 5 MW module of
Heliogen's artificial intelligence-enabled concentrated solar energy
technology in California. The project is progressing through FEED. In
addition, Heliogen and Woodside have a collaboration agreement to jointly
market Heliogen's renewable energy technology in Australia.
Woodside has investments in LanzaTech and String Bio which seek to convert
carbon into useful products through carbon capture and utilisation (CCU) and
continues to assess opportunities to deploy their technologies in
demonstration-scale pilot projects ahead of their potential deployment on a
larger-scale.
Climate and Sustainability
Climate
Woodside released its Climate Report 2022 which summarises Woodside's
climate-related plans, activities, progress and climate-related data for the
period 1 January 2022 to 31 December 2022. The report has been structured to
align with the Task Force on Climate-related Financial Disclosures (TCFD)
recommendations framework.
Asset decarbonisation plans were developed for the former BHP assets.
Decarbonisation plans have now been developed for all operated Woodside assets
and projects and will be reviewed annually in line with asset strategic
planning processes to maintain their currency and to continue to identify
opportunities as costs and technologies improve.
As a part of Woodside's ongoing focus on reducing methane emissions, H1 2023
activities included independent satellite and aerial surveys to measure
onshore methane emissions, and changes to operating procedures in our LNG
process.
In our Climate Report 2022, we identified six key climate-related
considerations which we may factor into investment decisions for opportunities
through an uncertain energy transition. They were applied to the Trion
investment decision and demonstrate how Woodside assessed that Trion is
expected to be resilient in a decarbonising world. 22
We continued to engage with shareholders and other stakeholders on Woodside's
climate strategy. Woodside intends to put its climate disclosures to a
non-binding, advisory vote at its annual general meeting in 2024.
Health, Safety & Environment
An incident occurred on the North Rankin Complex in June 2023 which resulted
in the fatality of a contractor employee. Woodside's investigations into the
incident are ongoing. Immediate actions have been implemented by Woodside and
preliminary lessons shared with industry.
Woodside experienced one Tier 1 loss of primary containment process safety
event at Pluto LNG in the first half of 2023. The contributing factors to this
event are understood with corrective actions identified.
Subsequent to the period, a loss of primary containment process safety event
occurred at the Angostura field in Trinidad and Tobago. Woodside shut down
offshore production operations at the facility and production was restarted
following successful completion of relevant safety checks across the facility.
Woodside's investigation is ongoing.
The year-to-date total recordable injury rate was 1.72 per million work hours
compared to 1.80 recorded for full-year 2022. Woodside is focusing on our
system of safety, learning from events and enhancing monitoring of key
controls to improve our overall safety performance.
Environmental performance remained strong in the first half of 2023, with zero
significant environmental events.
Supporting local suppliers
Woodside increased its year-on-year value of awarded contracts to local and
Indigenous suppliers, and increased visibility of commercially sustainable
contracting opportunities for our local and Indigenous suppliers to our
operations and projects.
Woodside continues to work with its key Sangomar contractors to provide
opportunities for Senegalese people and suppliers, whilst meeting the
requirements of in-country local content legislation. Woodside has also
continued to grow local contracting opportunities in Trinidad and the Gulf of
Mexico.
Communities
Woodside released a report on progress made in the second year of its
2021-2025 Reconciliation Action Plan. The report highlighted achievements and
areas for improvement in the areas of respect for culture and heritage,
economic participation and further developing capability and capacity.
Woodside's 2022 Social Contribution Impact Report was released in early 2023,
further demonstrating our commitment to creating positive outcomes in the
community and progress against Woodside's Sustainable Development Goals.
Social impact assessments (SIA) were completed for Karratha and Roebourne in
the north-west of Australia, and for the Trion Project in Mexico.
Principal risks and uncertainties
There are several risk factors or uncertainties that could result in a
material effect on the company's results over the next six months. These risks
and uncertainties may occur as a result of Woodside's activities globally,
including in connection with its operated (or non-operated) assets, and third
parties engaged through the value chain.
Information on Woodside's risks and how they are managed can be found on pages
33-40 of the Annual Report 2022. There have been no material changes to the
risk factors described in the Annual Report 2022 since the date of that
report. The risks are summarised below (in no particular order).
Climate change The global response to climate change is changing the way the world produces
and consumes energy. The complex and pervasive nature of climate change means
transition risks are interconnected with and may amplify other risks.
Additionally, the inherent uncertainty of potential societal responses to
climate change may create a systemic risk to the global economy. Climate
change may also create significant physical risks, such as increased frequency
and severity of storms, wildfires, floods and other climatic events, as well
as chronic shifts in temperature and precipitation patterns.
Social licence to operate Risks associated with actual or alleged deviation from social or business
expectations of ethical behaviour (including breaches of laws or regulations)
and social responsibility (including environmental impact and community
contribution), particularly as these expectations evolve.
Growth Risks associated with delivery of both major and complex multi-year execution
project activities across multiple global locations, including a reliance on
third parties for materials, products, and services as well as risks
associated with integration, acquisitions and divestments.
Operations Due to the nature of our operations, Woodside and neighbouring communities are
potentially exposed to a broad range of risks. This is a result of factors
such as the geographical range, operational diversity and technical complexity
of our assets. These types of risks include health and safety; commercial;
regulation; and reserves and resources estimates.
Finance and market Risks associated with the ability to capture value whether markets are stable
or volatile, and manage the risks associated with interest rate, commodity
price and foreign exchange fluctuations and inflation.
People and culture Risks associated with the ability to attract, retain, develop and motivate key
employees to succeed and safeguard both current or future performance and
growth.
Digital and cybersecurity Risks associated with adopting and implementing new technologies, whilst
safeguarding our digital information and landscape (including from cyber
threats) across our value chain.
Directors' Report
The directors of Woodside Energy Group Ltd present their report (including the
review of operations of Woodside Energy Group Ltd and its controlled entities
(Group) set out on pages 1-16 which forms part of this report) together with
the Half-Year Financial Statements of the Group.
Board of directors
The names of directors in office during or since the end of the 2023 half-year
are as follows:
Mr Richard Goyder, AO (Chair) Ms Meg O'Neill (CEO and Managing Director)
Mr Larry Archibald Mr Arnaud Breuillac (appointed 8 March 2023)
Mr Frank Cooper, AO Ms Swee Chen Goh
Ms Angela Minas (appointed 28 April 2023) Mr Ian Macfarlane
Ms Ann Pickard Mr Gene Tilbrook
Mr Ben Wyatt Dr Christopher Haynes, OBE (retired 28 April 2023)
Dr Sarah Ryan (retired 28 April 2023)
Rounding of amounts
Woodside Energy Group Ltd is an entity to which the Australian Securities and
Investments Commission (ASIC) Corporations (Rounding in Financial/Directors'
Reports) Instrument 2016/191 (ASIC Instrument 2016/191) applies. Amounts in
this report have been rounded in accordance with ASIC Instrument 2016/191.
This means that amounts contained in this report have been rounded to the
nearest million dollars, unless otherwise stated.
Auditor's Independence Declaration
The Auditor's Independence Declaration, as required under section 307C of the
Corporations Act 2001, is set out on page 18 and forms part of this report.
Signed in accordance with a resolution of the directors.
R J Goyder, AO
Chair
Perth, Western Australia
22 August 2023
Auditor's Independence Declaration to the Directors of Woodside Energy Group
Ltd
Auditor's Independence Declaration
As lead auditor for the review of Woodside Energy Group Ltd for the half-year
ended 30 June 2023, I declare that to the best of my knowledge and belief,
there have been:
(a) no contraventions of the auditor independence requirements of the
Corporations Act 2001 in relation to the review; and
(b) no contraventions of any applicable code of professional conduct in
relation to the review.
This declaration is in respect of Woodside Energy Group Ltd and the entities
it controlled during the period.
N M Henry
Partner, PricewaterhouseCoopers
Perth, Western Australia
22 August 2023
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH
WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards
Legislation.
HALF-YEAR FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
HALF-YEAR FINANCIAL STATEMENTS
CONTENTS
CONDENSED CONSOLIDATED (#_Toc142337895) INCOME STATEMENT (#_Toc142337895)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (#_Toc142337896)
CONDENSED CONSOLIDATED (#_Toc142337897) STATEMENT (#_Toc142337897) OF
(#_Toc142337897) FINANCIAL (#_Toc142337897) POSITION. (#_Toc142337897)
(#_Toc142337897)
CONDENSED CONSOLIDATED (#_Toc142337898) STATEMENT (#_Toc142337898) OF
(#_Toc142337898) CASH (#_Toc142337898) FLOWS (#_Toc142337898)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (#_Toc142337899)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (#_Toc142337900)
A. (#_Toc142337901) Earnings for the period (#_Toc142337901)
A.1 Segment revenue and expenses (#_Toc142337902)
A.2 Finance costs (#_Toc142337903)
A.3 Dividends paid and proposed (#_Toc142337904)
A.4 Earnings per share (#_Toc142337905)
A.5 Taxes (#_Toc142337906)
B. (#_Toc142337907) Production and growth assets (#_Toc142337907)
B.1 Exploration and evaluation (#_Toc142337908)
B.2 Oil and gas properties (#_Toc142337909)
B.3 Impairment of exploration and evaluation and oil and gas properties
(#_Toc142337910)
B.4 Business combination (#_Toc142337911)
C. (#_Toc142337912) Debt and capital (#_Toc142337912)
C.1 Contributed equity (#_Toc142337913)
C.2 Interest-bearing liabilities and financing facilities (#_Toc142337914)
D. (#_Toc142337915) Other assets and liabilities (#_Toc142337915)
D.1 Segment assets and liabilities (#_Toc142337916)
D.2 Provisions (#_Toc142337917)
D.3 Other financial assets and liabilities. (#_Toc142337918) (#_Toc142337918)
E. (#_Toc142337919) Other items (#_Toc142337919)
E.1 Contingent liabilities and assets (#_Toc142337920)
E.2 Changes to the composition of the Group (#_Toc142337921)
E.3 New standards and interpretations. (#_Toc142337922) (#_Toc142337922)
E.4 Events after the end of the reporting period (#_Toc142337923)
DIRECTORS' DECLARATION (#_Toc142337924)
INDEPENDENT REVIEW REPORT (#_Toc142337925)
Significant changes in the current reporting period
Financial performance for the half-year ended 30 June 2023 includes six months
of BHPP results, as compared to one month of results in the comparative
half-year ended 30 June 2022.
The financial performance and position of the Group were particularly affected
by the following events and transactions during the reporting period:
· In April 2023, Mad Dog Phase 2 in the US Gulf of Mexico achieved its
first production at the Argos platform. During the half-year ended 30 June
2023, Mad Dog Phase 2 produced 0.64 Mboe of hydrocarbons. Production will
continue to ramp up in 2023.
· On 20 June 2023, the Group made a final investment decision (FID) to
develop the Trion resource in Mexico. Related exploration and evaluation
assets were transferred to oil and gas properties (refer to Notes B.1 and
B.2). As a result of the FID, the Group has recognised deferred tax assets
(DTA) of $319 million (refer to Note A.5).
· During the half-year ended 30 June 2023, the Group reduced the Pluto
petroleum resource rent tax (PRRT) DTA by $637 million ($446 million post-tax)
on the basis of future taxable profits not being available to utilise the
deductible expenditure. This is primarily driven by decreases in forecast
pricing assumptions and actual pricing realised during the half-year ended 30
June 2023.
· The Group recognised a pre-tax impairment of $68 million for the
Pyrenees cash-generating unit, primarily due to a reduction in future
production volumes (refer to Note B.3).
· In April 2023, conditions precedent were achieved in the long-term
gas sale and purchase contract (GSPA) with Perdaman. The contract price
contains an embedded derivative linked to the price of Urea, which is
recognised as a liability of $52 million at 30 June 2023 (refer to Note D.3).
· In 2023, the Group has completed the purchase price accounting for
the BHP Petroleum (BHPP) merger (refer to Note B.4).
CONDENSED CONSOLIDATED INCOME STATEMENT
for the half-year ended 30 June 2023
2023 2022
Notes US$m US$m
Operating revenue A.1 7,400 5,810
Cost of sales A.1 (3,872) (2,238)
Gross profit 3,528 3,572
Other income A.1 134 498
Other expenses A.1 (803) (1,088)
Impairment losses A.1 (68) -
Profit before tax and net finance costs 2,791 2,982
Finance income 174 31
Finance costs A.2 (137) (86)
Profit before tax 2,828 2,927
Petroleum resource rent tax (PRRT) expense (778) (424)
Income tax expense A.5 (284) (824)
Profit after tax 1,766 1,679
Profit attributable to:
Equity holders of the parent 1,740 1,640
Non-controlling interest 26 39
Profit for the period 1,766 1,679
Basic earnings per share attributable to equity holders of the parent A.4 91.7 145.5
(US cents)
Diluted earnings per share attributable to equity holders of the parent A.4 91.1 144.0
(US cents)
The accompanying notes form part of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the half-year ended 30 June 2023
2023 2022
US$m US$m
Profit for the period 1,766 1,679
Other comprehensive income
Items that may be reclassified to the income statement in subsequent periods:
Gains/(losses) on cash flow hedges 413 (1,582)
Losses on cash flow hedges reclassified to the income statement 241 255
Tax recognised within other comprehensive income (76) 270
Exchange fluctuations on translation of foreign operations taken to equity 1 2
Items that will not be reclassified to the income statement in subsequent
periods:
Net (loss)/gain on financial instruments at fair value through other (23) 4
comprehensive income
Other comprehensive income/(loss) for the period, net of tax 556 (1,051)
Total comprehensive income for the period 2,322 628
Total comprehensive income attributable to:
Equity holders of the parent 2,296 589
Non-controlling interest 26 39
Total comprehensive income for the period 2,322 628
The accompanying notes form part of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2023
30 June 31 December
2023 2022
Notes US$m US$m
Current assets
Cash and cash equivalents 3,469 6,201
Receivables 1,223 1,578
Inventories 700 678
Other financial assets D.3 373 677
Tax receivable 101 73
Other assets 92 83
Total current assets 5,958 9,290
Non-current assets
Receivables 802 845
Inventories 101 11
Other financial assets D.3 134 120
Exploration and evaluation assets B.1 649 807
Oil and gas properties B.2 40,927 39,919
Deferred tax assets 1,680 1,959
Lease assets 1,182 1,264
Investments accounted for using the equity method 258 265
Goodwill B.4 4,669 4,614
Other assets 378 227
Total non-current assets 50,780 50,031
Total assets 56,738 59,321
Current liabilities
Payables 1,934 2,094
Interest-bearing liabilities 227 260
Other financial liabilities D.3 115 654
Provisions D.2 1,344 1,219
Tax payable 725 1,854
Lease liabilities 329 324
Other liabilities 271 203
Total current liabilities 4,945 6,608
Non-current liabilities
Interest-bearing liabilities 4,882 4,878
Deferred tax liabilities 2,222 2,457
Other financial liabilities D.3 71 67
Provisions D.2 5,750 5,960
Tax payable 38 36
Lease liabilities 1,241 1,310
Other liabilities 905 878
Total non-current liabilities 15,109 15,586
Total liabilities 20,054 22,194
Net assets 36,684 37,127
Equity
Issued and fully paid shares C.1 29,001 29,001
Shares reserved for employee share plans C.1 (50) (38)
Other reserves 6,576 4,031
Retained earnings 382 3,342
Equity attributable to equity holders of the parent 35,909 36,336
Non-controlling interest 775 791
Total equity 36,684 37,127
The accompanying notes form part of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the half-year ended 30 June 2023
2023 2022
Notes US$m US$m
Cash flows from operating activities
Profit after tax for the period 1,766 1,679
Adjustments for:
Non-cash items
Depreciation and amortisation 1,948 927
Depreciation of lease assets 81 62
Change in fair value of derivative financial instruments 269 326
Net finance (income)/costs (37) 55
Tax expense 1,062 1,248
Exploration and evaluation written off 1 1
Impairment losses B.3 68 -
Restoration movement 20 38
Gain on disposal of oil and gas properties - (430)
Movement in onerous contracts provision - (245)
Other (180) 18
Changes in assets and liabilities
Decrease/(increase) in trade and other receivables 488 (186)
Increase in inventories (72) (39)
Decrease in provisions (110) (43)
Decrease in lease liabilities (8) (24)
Increase in other assets and liabilities (234) (810)
(Decrease)/increase in trade and other payables (220) 314
Cash generated from operations 4,842 2,891
Purchases of shares and payments relating to employee share plans (20) (17)
Interest received 174 17
Dividends received 6 14
Borrowing costs relating to operating activities (8) (7)
Income tax and PRRT paid (2,233) (322)
Payments for restoration (162) (70)
Receipts from hedge collateral 332 -
Net cash from operating activities 2,931 2,506
Cash flows (used in)/from investing activities
Cash received on acquisition of BHPP, including cash acquired B.4 - 1,082
Payments for capital and exploration expenditure (2,457) (998)
Borrowing costs relating to investing activities (181) (103)
Advances to other external entities - (48)
Proceeds from disposal of non-current assets 3 112
Funding of equity accounted investments (2) -
Net cash (used in)/from investing activities (2,637) 45
Cash flows used in financing activities
Repayment of borrowings C.2 (41) (42)
Borrowing costs relating to financing activities - (6)
Repayment of the principal portion of lease liabilities (168) (91)
Borrowing costs relating to lease liabilities (3) (50)
Contributions to non-controlling interests (51) (45)
Dividends paid (net of DRP) (2,738) (717)
Net cash used in financing activities (3,001) (951)
Net (decrease)/increase in cash held (2,707) 1,600
Cash and cash equivalents at the beginning of the period 6,201 3,025
Effects of exchange rate changes (25) (10)
Cash and cash equivalents at the end of the period 3,469 4,615
The accompanying notes form part of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the half-year ended 30 June 2023
Issued and fully paid shares Reserved shares Employee benefits reserve Foreign currency translation reserve Hedging reserve Distributable profits reserve Other reserve Retained earnings Equity holders Non-controlling interest Total equity
of the parent
Notes C.1 C.1
US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m
At 1 January 2023 29,001 (38) 278 796 (586) 3,541 2 3,342 36,336 791 37,127
Profit for the period - - - - - - - 1,740 1,740 26 1,766
Other comprehensive income/(loss) - - - 1 578 - (23) - 556 - 556
Total comprehensive income/(loss) for the period - - - 1 578 - (23) 1,740 2,296 26 2,322
Transfers - - - - - 4,700 - (4,700) - - -
Employee share plan purchases - (20) - - - - - - (20) - (20)
Employee share plan redemptions - 8 (8) - - - - - - - -
Share-based payments (net of tax) - - 31 - - - - - 31 - 31
Dividends paid - - - - - (2,734) - - (2,734) (42) (2,776)
At 30 June 2023 29,001 (50) 301 797 (8) 5,507 (21) 382 35,909 775 36,684
At 1 January 2022 9,409 (30) 232 793 (400) 58 - 3,381 13,443 786 14,229
Profit for the period - - - - - - - 1,640 1,640 39 1,679
Other comprehensive income/(loss) - - - 2 (1,057) - 4 - (1,051) - (1,051)
Total comprehensive income/(loss) for the period - - - 2 (1,057) - 4 1,640 589 39 628
Transfers - - - - - 2,025 - (2,025) - - -
Dividend Reinvestment Plan 332 - - - - - - - 332 - 332
Shares issued for acquisition of BHPP 19,265 - - - - - - - 19,265 - 19,265
Replacement employee share plan issued on acquisition of BHPP - - 18 - - - - - 18 - 18
Employee share plan purchases - (17) - - - - - - (17) - (17)
Employee share plan redemptions - 5 (5) - - - - - - - -
Share-based payments (net of tax) - - 27 - - - - - 27 - 27
Dividends paid - - - - - - - (1,018) (1,018) (35) (1,053)
Transaction costs associated with the (5) - - - - - - - (5) - (5)
issue of shares
At 30 June 2022 29,001 (42) 272 795 (1,457) 2,083 4 1,978 32,634 790 33,424
The accompanying notes form part of the half-year financial statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
About these statements
Woodside Energy Group Ltd (Woodside or the Group) is a for-profit entity
limited by shares, incorporated and domiciled in Australia. Its shares are
publicly traded on the Australian Securities Exchange (ASX), on the Main
Market for listed securities of the London Stock Exchange (LSE) (with trades
settled in the form of UK Depository Interests) and on the New York Stock
Exchange (NYSE) (in the form of Woodside American Depositary Shares). The
nature of the operations and principal activities of the Group are described
in the Operations, Decommissioning, Marketing and Trading, Projects,
Exploration and Development and New Energy and Carbon Solutions sections and
in the segment information below.
The condensed consolidated half-year financial statements were authorised for
issue in accordance with a resolution of the Directors on 22 August 2023.
Statement of compliance
The condensed consolidated half-year financial statements are condensed
general purpose financial statements, which have been prepared in accordance
with Australian Accounting Standard (AASB) 134 Interim Financial Reporting as
issued by the Australian Accounting Standards Board and the Australian
Corporations Act 2001. These condensed consolidated half-year financial
statements also comply with International Accounting Standard (IAS) 34 Interim
Financial Reporting as issued by the International Accounting Standards Board.
The condensed consolidated half-year financial statements do not include all
notes of the type normally included in annual financial statements.
Accordingly, these condensed consolidated half-year financial statements are
to be read in conjunction with the Financial Statements within the Annual
Report for the year ended 31 December 2022 (2022 Financial Statements) and any
public announcements made by Woodside during the period ended 30 June 2023 in
accordance with the continuous disclosure requirements of the Australian
Corporations Act 2001 and the relevant ASX, LSE and NYSE Listing Rules.
The Group's accounting policies are materially consistent with those disclosed
in the Group's 2022 Financial Statements. Adoption of new or amended standards
and interpretations effective 1 January 2023 did not result in any significant
changes to the Group's accounting policies. Refer to Note E.3 for more
details.
The significant accounting estimates and judgements are consistent with those
disclosed in the 2022 Financial Statements. Estimates have been revised, where
required, to reflect current market conditions including the impact of climate
change. Updated estimates used for depreciation methodology and asset useful
lives, impairment assessments and business combinations are disclosed in Notes
B.2, B.3 and B.4 respectively; these assumptions could change in the future.
New estimates and judgements relating to the embedded commodity derivative are
disclosed in Note D.3.
Currency
The functional and presentation currency of Woodside and all its material
subsidiaries is US dollars.
Transactions in foreign currencies are initially recorded in the functional
currency of the transacting entity at the exchange rates ruling at the date of
transaction. Monetary assets and liabilities denominated in foreign currencies
at the reporting date are translated at the rates of exchange ruling at that
date. Exchange differences in the consolidated financial statements are taken
to the income statement.
Rounding of amounts
The amounts contained in the condensed consolidated half-year financial
statements have been rounded to the nearest million dollars under the option
available to the Group under Australian Securities and Investments Commission
(ASIC) Corporations (Rounding in Financial/Directors' Reports) Instrument
2016/191 dated 24 March 2016, unless otherwise stated.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
Basis of preparation
The condensed consolidated half-year financial statements have been prepared
on a historical cost basis, except for derivative financial instruments and
certain other financial assets and financial liabilities, which have been
measured at fair value or amortised cost, adjusted for changes in fair value
attributable to the risks that are being hedged in effective hedge
relationships. Where not carried at fair value, if the carrying value of
financial assets and financial liabilities does not approximate their fair
value, the fair value has been included in the notes to the condensed
consolidated half-year financial statements.
The condensed consolidated half-year financial statements comprise the
financial results of the Group and its subsidiaries for the period ended 30
June 2023. Subsidiaries are fully consolidated from the date on which control
is obtained by the Group and cease to be consolidated from the date at which
the Group ceases to have control.
The subsidiaries of the Group apply the same reporting period and accounting
policies as the parent company in preparation of the condensed consolidated
half-year financial statements. All intercompany balances and transactions,
including unrealised profits and losses arising from intra-group transactions,
have been eliminated in full.
Non-controlling interests are allocated their share of the net profit after
tax in the consolidated income statement; their share of other comprehensive
income, net of tax, in the consolidated statement of comprehensive income; and
are presented within equity in the consolidated statement of financial
position, separately from parent shareholders' equity.
Comparative information
The condensed consolidated half-year financial statements provide comparative
information in respect of the previous period. Where required, a
reclassification of items in the financial statements of the previous period
has been made in accordance with the classification of items in the condensed
consolidated half-year financial statements of the current period.
Reporting segments
Refer to the 2022 Financial Statements for details of the Group's operating
segment information.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
A. Earnings for the period
A.1 Segment revenue and expenses
Australia International Marketing Corporate/Other Consolidated
2023 2022 2023 2022 2023 US$m 2022 2023 2022 US$m 2023 2022 US$m
US$m US$m US$m US$m US$m US$m US$m
Liquified natural gas 3,894 3,119 - - 785 986 - - 4,679 4,105
Pipeline gas 515 232 198 57 - - - - 713 289
Crude oil and condensate 715 1,066 1,028 243 15 - - - 1,758 1,309
Natural gas liquids 120 11 16 5 23 - - - 159 16
Revenue from sale of hydrocarbons 5,244 4,428 1,242 305 823 986 - - 7,309 5,719
Intersegment revenue(1) (120) (323) (6) - 126 323 - - - -
Processing and services revenue 85 77 - - - - - - 85 77
Shipping and other revenue - 6 - - 6 8 - - 6 14
Other revenue (35) (240) (6) - 132 331 - - 91 91
Operating revenue(2) 5,209 4,188 1,236 305 955 1,317 - - 7,400 5,810
Production costs (614) (350) (193) (33) - - - (14) (807) (397)
Royalties, excise and levies (285) (189) (31) (14) - - - (17) (316) (220)
Insurance (20) (18) (5) (1) - - (9) (3) (34) (22)
Inventory movement 31 15 2 - - - - - 33 15
Costs of production (888) (542) (227) (48) - - (9) (34) (1,124) (624)
Land and buildings (31) (25) (2) - - - - - (33) (25)
Transferred exploration and evaluation (51) (50) (2) (1) - - - - (53) (51)
Plant and equipment (1,298) (774) (543) (58) - - (17) (16) (1,858) (848)
Oil and gas properties depreciation and amortisation (1,380) (849) (547) (59) - - (17) (16) (1,944) (924)
Shipping and direct sales costs (107) (92) (38) (4) (30) (15) - 17 (175) (94)
Trading costs (4) - - - (618) (790) - - (622) (790)
Other hydrocarbon costs (7) (19) - - - - - - (7) (19)
Other cost of sales - (3) - - - - - - - (3)
Movement in onerous contract provision(3) - - - - - 216 - - - 216
Other cost of sales (118) (114) (38) (4) (648) (589) - 17 (804) (690)
Cost of sales (2,386) (1,505) (812) (111) (648) (589) (26) (33) (3,872) (2,238)
Gross profit 2,823 2,683 424 194 307 728 (26) (33) 3,528 3,572
Other income(4) 106 489 - 4 1 5 27 - 134 498
Exploration and evaluation expenditure (9) (7) (123) (19) - - (1) (14) (133) (40)
Amortisation of permit acquisitions - - (4) (3) - - - - (4) (3)
Write-offs - - (1) (1) - - - - (1) (1)
Exploration and evaluation (9) (7) (128) (23) - - (1) (14) (138) (44)
General, administration and - (5) (3) (12) (10) - (224) (525) (237) (542)
other costs(5)
Depreciation of lease assets (22) (21) (7) (1) (34) - (18) (40) (81) (62)
Restoration movement (8) (31) (12) (10) - - - 3 (20) (38)
Other(6) (27) (13) (1) (64) (99) (227) (200) (98) (327) (402)
Other costs (57) (70) (23) (87) (143) (227) (442) (660) (665) (1,044)
Other expenses (66) (77) (151) (110) (143) (227) (443) (674) (803) (1,088)
Impairment losses(7) (68) - - - - - - - (68) -
Profit/(loss) before tax and net finance costs 2,795 3,095 273 88 165 506 (442) (707) 2,791 2,982
1. Intersegment revenue comprises the incremental income net of all
incremental associated expenses generated by the Marketing segment's
optimisation of the oil and gas portfolio.
2. Operating revenue includes revenue from contracts with customers of
$7,394 million (2022: $5,802 million) and sub-lease income of $6 million
(2022: $8 million) disclosed within shipping and other revenue.
3. The 2022 movement comprised changes in estimates of $245 million offset
by provisions used of $29 million.
4. Includes fees and recoveries and other income not associated with the
ongoing operations of the business. The 2022 amount includes the gain on Train
2 sell-down of $427 million.
5. Transaction costs incurred as a result of the BHPP merger on 1 June
2022 were included in the Corporate/Other segment in 2022.
6. Includes losses on hedging activities, fair value losses on the
embedded derivatives and other expenses not associated with the ongoing
operations of the business.
7. Impairment losses on oil and gas properties. Refer to Note B.3 for more
details.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
A.2 Finance costs
2023 2022
US$m US$m
Interest on interest-bearing liabilities 112 101
Interest on lease liabilities 54 58
Accretion charge 134 26
Other finance costs 21 14
Less: Finance costs capitalised against qualifying assets (184) (113)
137 86
A.3 Dividends paid and proposed
Woodside Energy Group Ltd, the parent entity, paid and proposed dividends as
set out below:
2023 2022
US$m US$m
(a) Dividends paid during the financial period 2,734
Prior year fully franked final dividend US$1.44, paid on 5 April 2023
(2022: US$1.05, paid on 23 March 2022)
1,018
(b) Dividend declared subsequent to the reporting period 1,519 2,070
(not recorded as a liability)
Current year fully franked interim dividend US$0.80 to be paid on
28 September 2023 (2022: US$1.09, paid on 6 October 2022)
A.4 Earnings per share
2023 2022
Profit attributable to equity holders of the parent (US$m) 1,740 1,640
Weighted average number of shares on issue for basic earnings per share 1,896,624,636 1,127,109,476
Effect of dilution from contingently issuable shares 12,981,487 11,895,577
Weighted average number of shares on issue adjusted for the effect of dilution 1,909,606,123 1,139,005,053
Basic earnings per share (US cents) 91.7 145.5
Diluted earnings per share (US cents) 91.1 144.0
Earnings per share is calculated by dividing the profit for the period
attributable to ordinary equity holders of the parent by the weighted average
number of shares on issue during the period. The weighted average number of
shares makes allowance for shares reserved for employee share plans. Diluted
earnings per share is calculated by adjusting basic earnings per share by the
number of ordinary shares that would be issued on conversion of all the
dilutive potential ordinary shares into ordinary shares. As at 30 June 2023,
12,981,487 (2022: 11,895,577) awards granted under the Woodside employee share
plans are considered dilutive.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
A.5 Taxes
2023 2022
US$m US$m
(a) Reconciliation of income tax expense
Profit before tax 2,828 2,927
Petroleum resource rent tax (PRRT) expense (778) (424)
Profit before income tax 2,050 2,503
Income tax expense calculated at 30% 615 751
Effect of tax rate differentials 30 (64)
Effect of deferred tax assets not recognised 67 33
Effect of tax losses and credits previously unrecognised(1) (340) (25)
Foreign exchange impact on tax benefit (83) -
Adjustment to prior years (16) (50)
Integration and transaction costs non-deductible(1) - 148
Other 11 31
Income tax expense 284 824
2023 2022
% %
(b) Effective income tax rate: Australian and global operations(2)
Effective income tax rate(1)
Australia 30.2 35.1
Global 13.9 32.9
1. As a result of the FID to develop the Trion resource in 2023, the Group
has recognised deferred tax assets of $319 million, resulting in a reduction
of the global effective income tax rate from 29.6% to 13.9%. The Group
incurred certain transaction costs for the half-year ended
30 June 2022 associated to the merger with BHPP which were deemed
non-deductible, which had the effect of increasing the global effective income
tax rate from 27.0% to 32.9%.
2. The global operations effective income tax rate (ETR) is calculated as
the Group's income tax expense divided by profit before income tax. The
Australian operations ETR is calculated with reference to all Australian
companies and excludes foreign exchange on settlement and revaluation of
income tax liabilities.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
B. Production and growth assets
B.1 Exploration and evaluation
Asia Pacific Americas Africa Total
US$m US$m US$m US$m
Half-year ended 30 June 2023
Carrying amount at 1 January 2023 529 240 38 807
Additions 16 111 3 130
Amortisation of licence acquisition costs - (3) (1) (4)
Expensed - (1) - (1)
Transferred exploration and evaluation(1) (9) (274) - (283)
Carrying amount at 30 June 2023 536 73 40 649
Year ended 31 December 2022
Carrying amount at 1 January 2022 546 - 68 614
Acquisitions through business combination(2) - 180 - 180
Additions 19 204 17 240
Disposals - (10) - (10)
Amortisation of licence acquisition costs - (8) (2) (10)
Expensed(3) - (126) (45) (171)
Transferred exploration and evaluation (36) - - (36)
Carrying amount at 31 December 2022 529 240 38 807
1. On 20 June 2023, the Group made a final investment decision to develop
the Trion resource in Mexico. Related exploration and evaluation assets were
transferred to oil and gas properties.
2. Refer to Note B.4 for details of business combination.
3. For the year ended 31 December 2022, $125 million relates to costs of
unsuccessful wells.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
B.2 Oil and gas properties
Land and buildings Transferred exploration and evaluation Plant and equipment Projects in Total
US$m US$m US$m development(5) US$m US$m
Half-year ended 30 June 2023
Carrying amount at 1 January 2023 840 481 23,057 15,541 39,919
Additions(1) - - (111) 2,852 2,741
Disposals at written down value (3) - (1) - (4)
Depreciation and amortisation (33) (53) (1,858) - (1,944)
Impairment losses(2) - - (68) - (68)
Completions and transfers - 156 1,828 (1,701) 283
Carrying amount at 30 June 2023 804 584 22,847 16,692 40,927
At 30 June 2023
Historical cost 1,760 1,694 46,977 17,088 67,519
Accumulated depreciation and impairment (956) (1,110) (24,130) (396) (26,592)
Net carrying amount 804 584 22,847 16,692 40,927
Year ended 31 December 2022
Carrying amount at 1 January 2022 739 526 12,465 4,919 18,649
Acquisitions through business combination(3) 64 - 11,952 7,337 19,353
Additions(4) - - (508) 4,332 3,824
Disposals at written down value (3) (10) (32) - (45)
Depreciation and amortisation (54) (107) (2,637) - (2,798)
Impairment reversals 87 30 783 - 900
Completions and transfers 7 42 1,034 (1,047) 36
Carrying amount at 31 December 2022 840 481 23,057 15,541 39,919
At 31 December 2022
Historical cost 1,765 1,538 45,273 15,937 64,513
Accumulated depreciation and impairment (925) (1,057) (22,216) (396) (24,594)
Net carrying amount 840 481 23,057 15,541 39,919
The Group has capital expenditure commitments contracted for, but not provided
for in the financial statements, of
$6,027 million (revised 31 December 2022(6): $6,469 million).
1. Includes $2,555 million of capital additions, $184 million of
capitalised borrowing costs and changes in restoration provision assumptions
resulting in $113 million of additions to projects in development offset by
$111 million within plant and equipment.
2. Refer to Note B.3 for details on impairment losses.
3. Refer to Note B.4 for details of business combination.
4. Includes $3,904 million of capital additions and $294 million of
capitalised borrowing costs offset by $374 million following changes in
restoration provision assumptions.
5. Projects in development include the fair value ascribed to future
phases of certain projects acquired through business combinations.
6. The 2022 Financial Statements disclosed capital expenditure commitments
of $7,762 million which duplicated certain amounts post-merger. This has now
been revised to reflect the Group's share of commitments.
Change in depreciation methodology and asset useful lives
The Group has undertaken a review of the depreciation methodology and asset
useful lives for oil and gas properties in accordance with its accounting
policies and the accounting standards, considering the scale and diversity of
the post-merger portfolio.
In assessing useful lives of certain oil and gas assets, these have been
determined with reference to either their proved (1P) or proved plus probable
(2P) reserves, which is then used in the units of production depreciation
calculation.
From 1 January 2023, upstream oil and conventional gas assets have been
depreciated over proved reserves (previously proved plus probable, except for
certain assets considered late life). Upstream LNG assets has continued to be
depreciated over proved plus probable reserves. Multi-product assets are
assessed on a case-by-case basis and aligned to the most appropriate
representation of useful life.
The changes in depreciation methodology and asset useful lives have been
applied from 1 January 2023, resulting in an increase in depreciation expense
of $190 million for the half-year ended 30 June 2023.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
B.3 Impairment of exploration and evaluation and oil and gas properties
Impairment of non-current assets
The policy for impairment testing and methods used to determine recoverable
amounts are consistent with the disclosure in Note B.4 of the 2022 Financial
Statements. The recoverable amount of an asset or cash-generating unit (CGU)
is determined as the higher of its value in use (VIU) and fair value less cost
of disposal (FVLCD). Oil and gas properties are typically tested at the CGU
level. Exploration and evaluation assets, where applicable, are assessed at
the area of interest (AOI) level using FVLCD as there is no VIU. Upon FID,
impairment testing is performed on the asset prior to the transfer from
exploration and evaluation assets to oil and gas properties. Goodwill is
tested for impairment at least annually and more frequently if events or
changes in circumstances indicate that it might be impaired. For the half-year
ended 30 June 2023, there have been no such events or changes in circumstances
to indicate that goodwill may be impaired.
Recognised impairment
As at 30 June 2023, the Group assessed each AOI and CGU to determine whether
an indicator of impairment or impairment reversal existed. The Group
identified the following indicators of impairment on CGUs where an impairment
loss has been recognised:
- Pyrenees CGU - Reduction in future production volumes,
reflecting a lower-than-expected outcome of drilling activities.
An impairment was recognised for the Pyrenees CGU (refer to Note A.1). The
result was as follows:
Impairment loss
Oil and gas properties
Segment CGU Recoverable Amount Plant and equipment Total
US$m US$m US$m
Australia Pyrenees 159 68 68
The recoverable amount has been determined using the FVLCD method using
discounted cash flow projections, classified as Level 3 on the fair value
hierarchy. The carrying amount of the CGU includes all relevant assets
allocated to the respective CGU.
Management considers there to be no reasonably possible change in the
respective key estimates and judgements which, in isolation, would result in a
material adjustment to the carrying amount of the Pyrenees CGU.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
B.4 Business combination
BHP Petroleum merger
Refer to the 2022 Financial Statements for details of the BHP Petroleum (BHPP)
merger. Except for changes noted below, the disclosures are consistent with
Note B.5 of the 2022 Financial Statements.
On 1 June 2022, the Group acquired 100% of the issued share capital of BHP
Petroleum International Pty Ltd (subsequently renamed Woodside Energy Global
Holdings Pty Ltd), which held BHP Group's (BHP) oil and gas business. In
exchange, the Group issued 914,768,948 new Woodside shares to BHP as part of
the merger consideration. The transaction was accounted for as a business
combination with an acquisition date of 1 June 2022. The Group had 12 months
from the acquisition date to make adjustments to the fair value of net
identifiable assets acquired and the resultant value of goodwill. As at 30
June 2023, the Group has finalised the purchase price allocation which has
resulted in goodwill of $4,669 million, a net increase of $55 million from the
provisional amount reported at 31 December 2022.
Details of the purchase consideration and the fair value of goodwill,
identifiable assets and liabilities of BHPP acquired are as follows:
Fair value of net identifiable assets and goodwill arising on acquisition date US$m
Cash and cash equivalents 399
Receivables 1,164
Inventories 295
Investments accounted for using the equity method 267
Other financial assets 59
Other assets 284
Exploration and evaluation assets 180
Oil and gas properties 19,353
Lease assets 142
Payables (1,035)
Provisions (4,827)
Tax payable (365)
Deferred tax liabilities (653)
Lease liabilities (268)
Other liabilities (1,054)
Net identifiable assets acquired 13,941
Goodwill arising on acquisition 4,669
Purchase consideration 18,610
Purchase consideration US$m
Shares issued, at fair value 19,265
Other reserves (Share replacement awards) 18
Locked box payment received(1) (683)
Finalisation adjustment to locked box payment received 10
Total purchase consideration 18,610
1. Represents the positive net cash flow of $1,513 million generated by
BHPP assets from the effective date of the business combination offset by the
notional dividend distribution of $830 million paid to BHP.
Analysis of cash flows on acquisition US$m
Cash acquired on acquisition 399
Locked box payment received 683
Net cash flow received on acquisition 1,082
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
B.4 Business combination (continued)
Shares issued, at fair value
The fair value of 914,768,948 shares issued as part of the consideration paid
to BHP was $19,265 million. This was based on the published share price on 1
June 2022 of US$21.06 per share.
Locked box payment received
For the year ended 31 December 2022, the Group received $683 million as part
of the merger consideration which includes the locked box payment of $1,513
million representing the positive net cash flow generated by BHPP assets from
the effective date of the transaction to completion date offset by the
notional dividend distribution of $830 million paid to BHP. The initial
purchase consideration was subsequently adjusted by $10 million against the
locked box payment received.
Goodwill
Goodwill arising from the acquisition has been recognised as the excess of
consideration paid above the fair value of the assets acquired and liabilities
assumed as part of the business combination. $2,035 million of the goodwill
arises from the deferred tax liability recognised on acquisition as a
consequence of asset tax bases received in the merger being lower than the
fair value of the assets acquired. The remaining goodwill of $2,634 million
reflects the value expected to be generated from the Pluto-Scarborough CGU as
a result of the merger. The goodwill is not deductible for tax purposes.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
C. Debt and capital
C.1 Contributed equity
Issued and fully paid shares Number of shares US$m
Half-year ended 30 June 2023
Opening balance 1,898,749,771 29,001
Amounts as at 30 June 2023 1,898,749,771 29,001
Year ended 31 December 2022
Opening balance 969,631,826 9,409
DRP - ordinary shares issued at US$23.14 (2021 final dividend) 14,348,997 332
Ordinary shares issued at US$21.06 for the acquisition of BHPP(1) 914,768,948 19,265
DRP - ordinary shares issued at US$14.21 (2021 interim dividend) - (5)
Amounts as at 31 December 2022 1,898,749,771 29,001
1. 914,768,948 new Woodside shares were issued as consideration for the
BHPP merger. Refer to Note B.4 for details.
All shares are a single class with equal rights to dividends, capital
distributions and voting. The Company does not have authorised capital nor par
value in respect of its issued shares.
Reserved shares 30 June 31 December
2023 2022
US$m US$m
2,268,409 (2022: 1,873,777) reserved shares (50) (38)
C.2 Interest-bearing liabilities and financing facilities
During the period, the Group repaid $41 million of the Japan Bank for
International Cooperation (JBIC) facility. There were no other material
changes to interest-bearing liabilities and financing facilities. For the year
ended 31 December 2022, the Group repaid $200 million of the Yucho 2022 Medium
Term Note and $83 million of the JBIC facility.
Fair value
The carrying amounts of interest-bearing liabilities approximate their fair
values, with the exception of the Group's unsecured bonds and the medium-term
notes. The unsecured bonds have a carrying amount of $4,086 million (31
December 2022: $4,084 million) and a fair value of $3,882 million (31 December
2022: $3,852 million). The medium-term notes have a carrying amount of $393
million (31 December 2022: $385 million) and a fair value of $382 million (31
December 2022: $372 million). Fair value is calculated based on the present
value of future principal and interest cash flows, discounted at the market
rate of interest at the reporting date and classified as Level 1 on the fair
value hierarchy.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
D. Other assets and liabilities
D.1 Segment assets and liabilities
30 June 31 December
2023 2022
US$m US$m
(a) Segment assets
Australia 30,707 31,240
International 18,925 18,084
Marketing(1) 709 182
Corporate/Other(1) 6,397 9,815
56,738 59,321
30 June 31 December
2023 2022
US$m US$m
(b) Segment liabilities
Australia(2) 7,170 7,552
International 2,695 2,677
Marketing(1) 752 561
Corporate/Other(1,2) 9,437 11,404
20,054 22,194
1. In 2023, certain shipping activities are now undertaken by the
Marketing segment. As a result of this change, $477 million of lease assets
and $624 million of lease liabilities are now reported within the Marketing
segment as at 30 June 2023. The impact of this change on revenue and expenses
is not material.
2. 2022 comparatives have been revised to reflect the appropriate
allocation of intercompany liabilities between Australia and Corporate/Other
segments post-merger. As a result of this change, $552 million has been
reclassified to the Corporate/Other segment.
Corporate/other assets mainly comprise cash and cash equivalents, lease assets
and deferred tax assets. Corporate/other liabilities mainly comprise interest
bearing liabilities, lease liabilities and deferred tax liabilities.
D.2 Provisions
Restoration(1) Employee benefits Onerous contracts Other Total
US$m US$m US$m US$m US$m
Half-year ended 30 June 2023
At 1 January 2023 6,253 517 - 409 7,179
Change in provision (138) (54) - (9) (201)
Unwinding of present value discount 116 - - - 116
Carrying amount at 30 June 2023 6,231 463 - 400 7,094
Current 765 274 - 305 1,344
Non-current 5,466 189 - 95 5,750
Net carrying amount 6,231 463 - 400 7,094
Year ended 31 December 2022
At 1 January 2022 2,218 286 214 106 2,824
Acquisitions through business combination(2) 4,310 329 - 165 4,804
Change in provision (382) (98) (216) 137 (559)
Unwinding of present value discount 107 - 2 1 110
Carrying amount at 31 December 2022 6,253 517 - 409 7,179
Current 575 331 - 313 1,219
Non-current 5,678 186 - 96 5,960
Net carrying amount 6,253 517 - 409 7,179
1. 2023 change in provision is due to a revision of discount rates of $86
million (primarily due to an increase in risk free rates) and provisions used
of $162 million, offset by changes in estimates of $110 million.
2. Refer to Note B.4 for details of business combination.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
D.3 Other financial assets and liabilities
30 June 31 December
2023 2022
US$m US$m
Other financial assets
Financial instruments at fair value through profit and loss
Derivative financial instruments designated as hedges 221 207
Other financial assets 50 22
Financial instruments at amortised cost
Hedge collateral (including interest) 177 509
Other financial assets 30 30
Financial instruments at fair value through other comprehensive income
Other financial assets 29 29
Total other financial assets 507 797
Current 373 677
Non-current 134 120
Net carrying amount 507 797
Other financial liabilities
Financial instruments at fair value through profit and loss
Derivative financial instruments designated as hedges 129 721
Embedded derivative 52 -
Other financial liabilities 5 -
Total other financial liabilities 186 721
Current 115 654
Non-current 71 67
Net carrying amount 186 721
Hedging activities
During the period, the following hedging activities were undertaken:
· The Group hedged a percentage of its oil-linked exposure,
entering into oil swap derivatives settling in 2023 and 2024 in order to
achieve minimum average sales prices of $75 per barrel.
· Through foreign exchange forward contracts, the Group hedged the
Australian dollar to US dollar exchange rate for a portion of the Australian
dollar denominated capital expenditure expected to be incurred for the
Scarborough development.
· In 2022, the Group voluntarily placed $506 million (excluding
interest) as collateral against the oil hedge positions to reduce counterparty
credit risk exposure. The Group has subsequently received $332 million
(excluding interest) of the collateral in 2023. The collateral will continue
to mature in line with cargoes delivering up to August 2023.
The following table presents the Group's derivative financial instruments
designated as hedges, measured and recognised at fair value:
30 June 31 December
2023 2022
US$m US$m
Oil swaps (cash flow hedges) 20 (114)
HH Corpus Christi commodity swaps (cash flow hedges) (27) 26
TTF Corpus Christi commodity swaps (cash flow hedges) 48 (469)
Interest rate swaps (cash flow hedges) 59 55
Cross-currency interest rate swaps (cash flow and fair value hedges) 14 5
FX forwards (cash flow hedges) (22) (17)
Total derivative financial instruments asset/(liability) designated as hedges 92 (514)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
D.3 Other financial assets and liabilities (continued)
Embedded commodity derivative
In 2023, the Group entered into a revised long-term gas sale and purchase
contract (GSPA) with Perdaman with conditions precedent being satisfied during
the half-year, where a component of the selling price is linked to the price
of Urea. The contract has been assessed to contain an embedded commodity
derivative that is required to be separated and recognised at fair value
through profit and loss. The carrying value of the embedded derivative at 30
June 2023 amounted to a liability of $52 million (31 December 2022: nil). The
derivative is remeasured to fair value at each reporting date in accordance
with the Urea price at that date. As at 30 June 2023, the unrealised loss of
$52 million has been recognised through profit and loss.
Interest rate benchmark reform
A fundamental reform of major interest rate benchmarks is being undertaken
globally, including the replacement of some interbank offered rates (IBORs)
with alternative nearly risk-free rates (referred to as 'IBOR reform'). The
Group has exposures to IBORs on its financial instruments that will be
impacted as part of these market-wide initiatives. The Group's main IBOR
exposure at the reporting date is USD LIBOR. In 2020, the Federal Reserve
announced that the three-month and six-month USD LIBOR will be phased out and
eventually replaced by June 2023.
During the period, the Group has transitioned the majority of its financial
liabilities from USD LIBOR to Secured Overnight Financing Rate (SOFR). The
Group still has some financial derivatives which are exposed to interest rate
benchmarks impacted by IBOR reform:
- $400 million of interest rate swaps associated with the $600
million syndicated facility have transitioned to SOFR. A remaining $200
million of interest rate swaps will transition post 30 June 2023 on the swap
reset date.
- A cross-currency interest rate swap relating to the fixed-rate
175 million Swiss Franc (CHF) denominated medium term note is due to expire in
December 2023. The final interest rate reset in September 2023 will be based
on SOFR.
The transition of the current benchmark rates to alternative benchmark rates
did not result in a significant impact to the Group's financial assets and
liabilities.
Fair value
Except for the other financial assets and other financial liabilities set out
in this note, there are no other material financial assets or financial
liabilities carried at fair value. Other financial assets and other financial
liabilities set out in this note are classified as Level 2 on the fair value
hierarchy with market observable inputs, with the exception of the embedded
commodity derivative which has been classified as Level 3 on the fair value
hierarchy with no market observable inputs. Refer to key estimates and
judgements for further details. During the period, there were no
reclassifications between the fair value hierarchy levels.
With the exception of the embedded commodity derivative, there were no changes
to the Group's valuation processes, valuation techniques and types of inputs
used in the fair value measurements during the period.
Financial risk factors
The Group's activities expose its financial instruments to a variety of market
risks, including foreign exchange, commodity price and interest rate risk. The
half-year financial report does not include all financial risk management
information and disclosures required in the annual report and, as such, should
be read in conjunction with the Group's 2022 Financial Statements. There have
been no significant changes in risk management policies since 31 December
2022. Refer to the embedded commodity derivative key estimates and judgements
section for the sensitivity assessment on discount rates and pricing.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
D.3 Other financial assets and liabilities (continued)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2023
E. Other items
E.1 Contingent liabilities and assets
30 June 31 December
2023 2022
US$m US$m
Contingent liabilities at reporting date
Not otherwise provided for in the financial statements:
Contingent liabilities 70 161
Guarantees 2 2
72 163
Contingent liabilities relate predominantly to possible obligations whose
existence will only be confirmed by the occurrence or non-occurrence of
uncertain future events, and therefore the Group has not provided for such
amounts in these condensed half-year financial statements. Additionally, there
are a number of other claims and possible claims that have arisen in the
course of business against entities in the Group, the outcome of which cannot
be estimated at present and for which no amounts have been included in the
table above.
The Group has contingent assets of $33 million as at 30 June 2023 (31 December
2022: $199 million).
E.2 Changes to the composition of the Group
There have been no changes to the composition of the Group since the last
annual report.
E.3 New standards and interpretations
New and amended accounting standards adopted
A number of amended standards became applicable for the current reporting
period. The Group did not make any significant changes to its accounting
policies and did not make retrospective adjustments as a result of adopting
these amended standards. These amendments did not materially impact the
accounting policies or amounts disclosed in the half-year financial statements
of the Group.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and
interpretations have been published that are not mandatory for the 30 June
2023 reporting period and have not been early adopted by the Group. These
standards, amendments or interpretations are not expected to have a material
impact to the Group in the current or future reporting periods and on
foreseeable future transactions with the exception of the amendments to AASB
112/ IAS 12 Income Taxes where the impact is under assessment.
Pillar Two reforms
In December 2021, the Organisation for Economic Co-operation and Development
(OECD) published its Pillar Two model rules. The Pillar Two model rules:
- Aim to ensure that large multinational groups pay a minimum
amount of tax on income arising in each jurisdiction in which they operate;
and
- Would achieve a minimum effective tax rate in each jurisdiction
of 15% from the reporting period commencing
1 January 2024.
The impact of the Pillar Two reforms is under assessment.
E.4 Events after the end of the reporting period
On 8 August 2023, the Group and LJ Scarborough Pty Ltd (LNG Japan) entered
into a Sale and Purchase Agreement for LNG Japan to acquire a 10%
non-operating participating interest in the Scarborough Joint Venture (the
transaction). The purchase price is $500 million, subject to adjustments. LNG
Japan will reimburse the Group for its share of expenditure for the
Scarborough project from the effective date of 1 January 2022. On completion
of the transaction, expected in the first quarter of 2024, the estimated total
consideration comprising the purchase price, reimbursed expenditure and
escalation is approximately $880 million. The financial effects of this
transaction have not been recognised as at 30 June 2023.
DIRECTORS' DECLARATION
For the half-year ended 30 June 2023
In accordance with a resolution of directors of Woodside Energy Group Ltd, we
state that:
In the opinion of the directors:
a) the financial statements and notes of the Group are in accordance
with the Australian Corporations Act 2001, including:
i. giving a true and fair view of the Group's financial position as
at 30 June 2023 and of its performance for the half-year ended on that date;
and
ii. complying with Accounting Standard AASB 134 Interim Financial
Reporting and the Corporations Regulations 2001;
b) there are reasonable grounds to believe that Woodside Energy Group
Ltd will be able to pay its debts as and when they become due and payable.
For the purposes of the UK Disclosure Guidance and Transparency Rules, the
directors confirm that to the best of their knowledge:
a) the financial statements, prepared in accordance with applicable set
of accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of Woodside Energy Group Ltd and the
undertakings included in the consolidation taken as a whole; and
b) the half-year report includes a fair review of the:
i. important events that have occurred during the first six months
of the financial year and their impact on the half-year financial statements;
ii. principal risks and uncertainties for the remaining six months of
the financial year; and
iii. related party transactions that have taken place in the first six
months of the financial year and that have materially affected financial
position or performance during that period and any changes in the related
party transactions described in the last annual report that could have a
material effect on financial position or performance in the first six months
of the financial year.
On behalf of the Board
R J Goyder, AO M E O'Neill
Chair Chief Executive Officer and Managing Director
Perth, Western Australia Sydney, New South Wales
22 August 2023 22 August 2023
INDEPENDENT REVIEW REPORT
Independent auditor's review report to the members of Woodside Energy Group
Ltd
Report on the half-year financial report
Conclusion
We have reviewed the half-year financial report of Woodside Energy Group Ltd
(the Company) and the entities it controlled during the half-year (together
the Group), which comprises the condensed consolidated statement of financial
position as at 30 June 2023, the condensed consolidated income statement, the
condensed consolidated statement of comprehensive income, the condensed
consolidated statement of cash flows and the condensed consolidated statement
of changes in equity for the half-year ended on that date, material accounting
policy information and explanatory notes and the directors' declaration.
Based on our review, which is not an audit, we have not become aware of any
matter that makes us believe that the accompanying half-year financial report
of Woodside Energy Group Ltd does not comply with the Corporations Act 2001
including:
1. giving a true and fair view of the Group's financial position as at 30
June 2023 and of its performance for the half-year ended on that date
2. complying with Accounting Standard AASB 134 Interim Financial Reporting
and the Corporations Regulations 2001.
Basis for conclusion
We conducted our review in accordance with ASRE 2410 Review of a Financial
Report Performed by the Independent Auditor of the Entity (ASRE 2410). Our
responsibilities are further described in the Auditor's responsibilities for
the review of the half-year financial report section of our report.
We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional & Ethical Standards Board's APES 110 Code of
Ethics for Professional Accountants (including Independence Standards) (the
Code) that are relevant to the audit of the annual financial report in
Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
Responsibilities of the directors for the half-year financial report
The directors of the Company are responsible for the preparation of the
half-year financial report that gives a true and fair view in accordance with
Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the
preparation of the half-year financial report that gives a true and fair view
and is free from material misstatement whether due to fraud or error.
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH
WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards
Legislation.
Auditor's responsibilities for the review of the half-year financial report
Our responsibility is to express a conclusion on the half-year financial
report based on our review. ASRE 2410 requires us to conclude whether we have
become aware of any matter that makes us believe that the half-year financial
report is not in accordance with the Corporations Act 2001 including giving a
true and fair view of the Group's financial position as at 30 June 2023 and of
its performance for the half-year ended on that date, and complying with
Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
Regulations 2001.
A review of a half-year financial report consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with Australian Auditing
Standards and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be identified in an
audit. Accordingly, we do not express an audit opinion.
PricewaterhouseCoopers
N M Henry A G B Hodge
Partner
Partner
Perth, Western Australia
Perth, Western Australia
22 August 2023
22 August 2023
Appendix 4D
Dividends
Ex-dividend date 31 August 2023
Record date for the interim dividend 1 September 2023
Date the dividend is payable 28 September 2023
Current period Previous corresponding period 23
Interim dividend - fully franked US cents per share 80 109
None of these dividends are foreign sourced.
Woodside dividends are determined and declared in US dollars. However,
shareholders will receive their dividend in Australian dollars unless their
registered address is in the United Kingdom (in which case they will receive
their dividend in British pounds), in the United States of America (in which
case they will receive their dividend in US dollars) or in New Zealand (in
which case they will receive their dividend in NZ dollars).
Shareholders who reside outside of the United States can elect to receive
their dividend electronically in US dollars, payable into a US financial
institution account. Shareholders who reside outside of the United States, the
United Kingdom, New Zealand and Australia may elect to receive their dividend
electronically in their local currency using Global Wire Payment Service from
the Company's share registry, Computershare Investor Services Pty Ltd.
Shareholders should contact the Company's share registry if they wish to alter
their dividend currency for future dividend payments. Contact details are
available on Woodside's website on the Shareholder Information section of the
Investors page. Shareholders must make an election to alter their dividend
currency on or before 5.00pm AWST on 5 September 2023.
Currency conversion will be based on the foreign currency exchange rates
prevailing on or around the dividend record date of 1 September 2023.
Net Tangible Assets (NTA) per ordinary security
Current period Previous corresponding period(1)
US$ US$
Net Tangible Assets (US$ per ordinary security) 24 16.40 15.06
Details of Associates and Joint Venture Entities
Percentage of ownership interest held at end of period or date of disposal
Name of entity Current period Previous corresponding period(1)
North West Shelf Gas Pty Ltd 33.33% 33.33%
North West Shelf Liaison Company Pty Ltd 33.33% 33.33%
China Administration Company Pty Ltd 33.33% 33.33%
International Gas Transportation Company Limited 33.33% 33.33%
North West Shelf Shipping Service Company Pty Ltd 33.33% 33.33%
North West Shelf Lifting Coordinator Pty Ltd 33.33% 33.33%
Blue Ocean Seismic Services Limited 28.50% 28.50%
Iwilei District Participating Parties, LLC 14.96% 14.96%
Caesar Oil Pipeline Company, LLC 25.00% 25.00%
Cleopatra Gas Gathering Company LLC 22.00% 22.00%
Marine Well Containment Company LLC 10.00% 10.00%
Shareholder information
Key announcements 2023
January Fourth quarter 2022 report
February Line-item guidance and other items
Full-year 2022 results and briefing
Annual Report 2022
Sustainable Development Report 2022
Climate Report 2022
March Changes to Woodside Board
April First quarter 2023 report
Appointment of Executive Vice President Australian Operations
June Fatality at North Rankin Complex
Woodside approves investment in Trion development
Report on payments to governments 2022
July Sangomar project update
Second quarter 2023 report
August Woodside to sell 10% Scarborough interest to LNG Japan
Events calendar 2023-2024
Key calendar dates for Woodside shareholders in 2023-24. Please note dates are
subject to review.
August 22 Half-year 2023 results
31 Ex-dividend date for interim dividend
September 1 Record date for interim dividend
28 Payment date for interim dividend
October 18 Third quarter 2023 report
November 8 Investor Briefing Day 2023
December 31 Year-end 2023
January Fourth quarter 2023 report
Business directory
Registered office: Postal address:
Woodside Energy Group Ltd GPO Box D188
Mia Yellagonga Perth WA 6840
11 Mount Street Australia
Perth WA 6000
Australia T: +61 8 9348 4000
Investor enquiries
Investors seeking information on the company should contact Investor Relations
at:
Postal address:
Investor Relations T: +61 8 9348 4000
GPO Box D188 E: investor@woodside.com (mailto:investor@woodside.com)
Perth WA 6840 W: woodside.com
Australia
Share registry enquiries
Investors seeking information about their shareholdings should contact the
company's share registry:
Registered office: Postal address:
Computershare Investor Services Pty Limited GPO Box D182
Level 11 Perth WA 6840
172 St Georges Terrace
Perth WA 6000 T: 1300 558 507 (within Australia)
+61 3 9415 4632 (outside Australia)
E: web.queries@computershare.com.au
(mailto:web.queries@computershare.com.au)
W: investorcentre.com/wds
The share registry can assist with queries on share transfers, dividend
payments, the dividend reinvestment plan, notification of tax file numbers and
changes of name, address or bank account details.
Details of shareholdings can be checked by visiting the share registry website
at www.investorcentre.com/wds (http://www.investorcentre.com/wds) .
Details of our registrar in the United Kingdom and our authorised depositary
bank for Woodside's American Depositary Receipt programme can be found on our
website.
Assets
Producing facilities
Australia
Asset Role Equity Product
Pluto LNG Operator 90% LNG, pipeline gas and condensate
North West Shelf(1) Operator 33.33% LNG, pipeline gas, condensate and NGLs
Wheatstone Non-operator 13% LNG, pipeline gas and condensate
Julimar-Brunello Operator 65%
Okha FPSO Operator 50% Crude oil
Ngujima-Yin FPSO Operator 60% Crude oil
Bass Strait Non-operator 32.5-50% Crude oil, pipeline gas, condensate and NGLs
Pyrenees FPSO Operator 40-71.4% Crude oil
Macedon Operator 71.4% Pipeline gas
1. The North West Shelf consists of a number of active joint ventures.
Woodside's participating interest is 33.33% in all of these apart from the NWS
joint ventures with CNOOC. Woodside's participating interest in the CLNG JV is
25% and in the Extended Interest JVs is 31.567%.
International
Asset Role Equity Product
Greater Angostura Operator 45-68.46% Crude oil and pipeline gas
Greater Shenzi Operator 72% Crude oil, pipeline gas, condensate and NGLs
Atlantis Non-operator 44% Crude oil, pipeline gas, condensate and NGLs
Mad Dog Non-operator 23.9% Crude oil, pipeline gas, condensate and NGLs
Projects
Post FID
Asset Role Equity Product
Scarborough(1) Operator 100%(2) LNG, pipeline gas and condensate
Sangomar Operator 82% Crude oil
Trion Operator 60% Crude oil
1. "Scarborough" includes the Scarborough field. Woodside is also
operator of Pluto Train 2, which achieved FID in 2021, and holds a 51%
participating interest.
2. On completion of the Transaction to sell a 10% interest in the
Scarborough Joint Venture to LNG Japan, Woodside will hold a 90% interest and
remain as operator. Completion is expected in Q1 2024.
Developments
Asset Role Equity Product
Calypso Operator 70% Gas
Browse Operator 30.6% LNG, pipeline gas and condensate
Greater Scarborough(1) Operator 100% Gas
Liard Operator 100% Gas
Non-operator 50% Gas
Sunrise Operator 33.44% LNG, pipeline gas and condensate
1. "Greater Scarborough" includes the Jupiter and Thebe fields.
New energy opportunities
Asset Role Equity Product
H2OK Operator 100% Hydrogen
H2Perth Operator 100% Hydrogen and ammonia
Hydrogen Refueller@H2Perth Operator 100% Hydrogen
H2TAS Operator 100% Hydrogen and ammonia
Woodside Solar Operator 100% Solar energy
Southern Green Hydrogen(1) Preferred partner - Hydrogen and ammonia
Heliogen(2) Non-operating partner N/A Solar energy
Carbon to Ethanol Pilot Plant(3) Operator 100% Carbon capture and utilisation
1. Woodside's equity in Southern Green Hydrogen is subject to
finalising commercial agreements.
2. Pilot or demonstration scale facility. Woodside is investing in
pilot projects and demonstration scale facilities to assess new energy
technologies and build demand for new energy products ahead of their potential
deployment on a larger scale.
Greenhouse gas assessment permits
Country Permit Role Joint venture Comment
Australia G-7-AP Non-operator Bonaparte CCS Assessment Joint Venture Located in the Bonaparte Basin off the north-western coast of the Northern
Territory
G-8-AP Operator Browse Joint Venture For carbon capture and storage evaluation for Browse
G-10-AP Operator Northern Carnarvon Basin CCS Joint Venture Located in the Northern Carnarvon Basin off the north west coast of Western
Australia
Exploration
Country Permit Role Equity Product
Asia - Pacific
Australia WA-356-P Operator 65% Gas prone basin
WA-404-P Operator 100% Gas prone basin
WA-536-P Operator 65% Gas prone basin
WA-550-P Operator 100% Gas prone basin
NT/P86 Operator 100% Gas prone basin
Europe
Ireland FEL 5/13 Operator Exit initiated Oil or gas prone basin
Africa
Senegal Rufisque, Sangomar and Sangomar Deep Operator 90% Oil prone basin
Congo Marine XX Non-operator 22.5% Oil or gas prone basin
Egypt Red Sea Block 1 Non-operator 45% Oil or gas prone basin
Red Sea Block 3 Non-operator 30% Oil and gas prone basin
Red Sea Block 4 Non-operator 25% Oil and gas prone basin
North Sidi Barrani Offshore (Block 2) Non-operator 27% Oil and gas prone basin
North El Dabaa Offshore (Block 4) Non-operator 27% Oil and gas prone basin
Caribbean
Barbados Carlisle Bay, Bimshire Bay Operator 60% Oil or gas prone basin
Latin America
Peru 108 Non-operator Exit initiated Oil or gas prone basin
North America
US Gulf of Mexico GB 640, GB 641, GB 685, GB 555, GB 726, GB 770, GB 771, GB 604, GB 605, GB Non-operator 40% Oil prone basin
647, GB 648, GB 772, GB 728, GB 729, GB 773, GB 774, GB 421, GB 464, GB 465,
GB 508, GB 509, GC 598
GB 574, GB 575, GB 619, GB 529, GB 530, GB 531 Operator 40% Oil prone basin
GC 436, GC 480 Non-operator 44% Oil prone basin
GB 501, GB 502, GB 545, GB 630, GB 672, GB 676, GB 677, GB 716, GB 719, GB Operator 60% Oil prone basin
720, GB 721, GB 760, GB 762, GB 763, GB 805, GB 806, GB 807, GB 851, GB 852,
GB 895
GC 282, GC 237 Non-operator 50% Oil prone basin
GB 663, GB 664, GB 678, Operator 100% Oil prone basin
GC 564, GC 210, GC 211,
AC 125, AC 126
EB 655, EB 656, EB 699, Operator 70% Oil prone basin
EB 700, EB 701, EB 566, EB 567,
EB 610, EB 611, AC 34, AC 36,
AC 78, AC 80, EB 870, EB 871,
EB 872, EB 914, EB 915, EB 742,
EB 785, EB 786, EB 830, AC 127,
AC 170, AC 39, AC 81, AC 82
MC 798, MC 842 Non-operator 45% Oil prone basin
GC 679, GC 768 Non-operator 31.9% Oil prone basin
GC 238 Non-operator 60% Oil prone basin
MC 368, MC 369, MC 411, MC 412, MC 455, MC 456 Non-operator 25% Oil prone basin
GC 80, GC 123, GC 124, GC 168 Operator 75% Oil prone basin
GC 738, GC 870 Non-operator 23.9% Oil prone basin
Alternative Performance Measures
Woodside uses various alternative performance measures (APM) which are
non-IFRS measures that are unaudited but derived from our Half-Year Financial
Statements. These measures are presented to provide further insight into
Woodside's performance. See Non-IFRS Measures on page 56 for more information.
APMs and their nearest respective IFRS measure.
APMs derived from the condensed consolidated half-year financial statements 30 June 30 June
and its accompanying notes
2023 2022
US$m US$m
EBIT/EBITDA excluding impairment
Net profit after tax 1,766 1,679
Adjusted for:
Finance income (174) (31)
Finance costs 137 86
PRRT expense 778 424
Income tax expense 284 824
EBIT 2,791 2,982
Adjusted for:
Oil and gas properties depreciation and amortisation 1,944 924
Amortisation of licence acquisition costs 4 3
Depreciation of lease assets 81 62
Impairment losses 68 -
EBITDA excluding impairment 4,888 3,971
Underlying NPAT
Net profit after tax attributable to equity holders of the parent 1,740 1,640
Adjusted for the following exceptional items:
Add: Derecognition of Pluto PRRT (post-tax) 446 -
Add: Impairment losses (post-tax) 29 -
Add: Merger transaction costs - 424
Less: Trion DTA recognition (319) -
Less: Derecognition of the Corpus Christi onerous contract provision - (245)
Underlying NPAT 1,896 1,819
Capital expenditure ( ) ( )
Capital additions on evaluation 76 -
Capital additions on oil and gas properties 2,555 1,509
Capital expenditure 2,631 1,509
Exploration expenditure
Exploration and evaluation expenditure 138 44
Adjusted for:
Amortisation expense (4) (3)
Prior year expense written off (1) -
Exploration capitalised 54 -
Exploration expenditure 187 41
Investment expenditure 2,818 1,550
Free cash flow ( ) ( )
Cash flow from operating activities(1) 2,931 2,506
Cash flow (used in)/from investing activities (2,637) 45
Free cash flow 294 2,551
1. H1 2022 comparative has been restated due to the reclassification of
purchases of shares and payments relating to employee share plans from cash
flows from financing activities to cash flows from operating activities.
APMs derived from the condensed consolidated half-year financial statements 30 June 30 June
and its accompanying notes
2023 2022
US$m US$m
Net tangible assets per ordinary security
Net assets 36,684 33,424
Adjusted for:
Goodwill (4,669) (3,975)
Non-controlling interest (775) (790)
Intangible assets (103) (64)
Net tangible assets 31,137 28,595
Number of issued and fully paid shares 1,898,749,771 1,898,749,771
Net tangible assets per ordinary security 16.40 15.06
Gearing
Interest-bearing liabilities (Current and non-current) 5,109 5,380
Lease liabilities (Current and non-current) 1,570 1,618
Adjusted for:
Cash and cash equivalents (3,469) (4,615)
Add: Restricted cash 10 -
Net debt 3,220 2,383
Equity attributable to equity holders of the parent 35,909 32,634
Total net debt and equity attributable to equity holders of the parent 39,129 35,017
Gearing (%) 8.2 6.8
Notes
Glossary
Term Definition
$, $m US dollars unless otherwise stated, millions of dollars
1P Proved reserves
2C Best Estimate of Contingent resources
2P Proved plus Probable reserves
ASX Australian Securities Exchange
A$, AUD Australian dollars
BHP Petroleum or BHPP Woodside Energy Global Holdings Pty Ltd ACN 006 923 897 (formerly known as BHP
Petroleum International Pty Ltd) and, unless context otherwise requires, its
subsidiaries. References to "Woodside Energy Global Holdings Pty Ltd" or
"BHP Petroleum International Pty Ltd" are references to Woodside Energy Global
Holdings Pty Ltd ACN 006 923 897 (formerly known as BHP Petroleum
International Pty Ltd) excluding its subsidiaries.
Brent Intercontinental Exchange (ICE) Brent Crude deliverable futures contract (oil
price)
Capital expenditure Includes capital additions on oil and gas properties and evaluation
capitalised
Carbon credit A tradeable financial instrument that is issued by a carbon-crediting program.
A carbon credit represents a greenhouse gas emission reduction to, or removal
from, the atmosphere equivalent to 1 tCO2-e, calculated as the difference in
emissions from a baseline scenario to a project scenario. Carbon credits are
uniquely serialised, issued, tracked and retired or administratively cancelled
by means of an electronic registry operated by an administrative body, such as
a carbon-crediting program
Cash margin Revenue from sale of produced hydrocarbons less production costs, royalties,
excise and levies, insurance, inventory movement, shipping and direct sales
costs and other hydrocarbon costs; excludes exploration and evaluation,
general administrative and other costs, depreciation and amortisation, PRRT
and income tax
CCS Carbon capture and storage
CCUS Carbon capture utilisation and storge
CHF Swiss francs
CO(2) Carbon dioxide
CO(2)-e CO(2) equivalent. The universal unit of measurement to indicate the global
warming potential of each of the seven greenhouse gases, expressed in terms of
the global warming potential of one unit of carbon dioxide. It is used to
evaluate releasing (or avoiding releasing) any greenhouse gas against a common
basis(1)
Condensate Hydrocarbons that are gaseous in a reservoir but that condense to form liquids
as they rise to the surface
cps Cents per share
Decarbonisation Woodside uses this term to describe activities or pathways that have the
effect of moving towards a state that is lower carbon, as defined in this
glossary
DRP Dividend reinvestment plan
EBIT Calculated as profit before income tax, PRRT and net finance costs
EBITDA excluding impairment Calculated as profit before income tax, PRRT, net finance costs, depreciation
and amortisation, impairment losses, impairment reversals
EPS Earnings per share
Exploration expenditure Includes exploration and evaluation expenditure less amortisation of licence
acquisition costs and prior year exploration expense written off
FEED Front-end engineering design
FID Final investment decision
FPSO Floating production storage and offloading
FPU Floating production unit
Free cash flow Cash flow from operating activities and cash flow from investing activities
GAAP Generally Accepted Accounting Principles
Gearing Net debt divided by the total of net debt and equity attributable to equity
holders of the parent.
GHG or greenhouse gas The seven greenhouse gases listed in the Kyoto Protocol are: carbon dioxide
(CO(2)); methane (CH(4)); nitrous oxide (N(2)O); hydrofluorocarbons (HFCs);
nitrogen trifluoride (NF(3)); perfluorocarbons (PFCs); and sulphur
hexafluoride (SF(6)) 25
Gross margin Gross profit divided by operating revenue. Gross profit excludes income tax,
PRRT, net finance costs, other income and other expenses
GWF Greater Western Flank
H1 H1 is 1 January to 30 June
HSE Health, safety and environment
IFRS International Financial Reporting Standards
Investment expenditure Includes capital expenditure and exploration expenditure
JV Joint venture
KGP Karratha Gas Plant
Liquidity Total cash and cash equivalents and available undrawn debt facilities less
restricted cash
LNG Liquified natural gas
Lower carbon Woodside uses this term to describe the characteristic of having lower levels
of associated potential GHG emissions when compared to historical and/or
current conventions or analogues, for example relating to an otherwise similar
resource, process, production facility, product or service, or activity
Lower carbon services Woodside uses this term to describe technologies, such as CCUS or offsets that
could be used by customers to reduce their net greenhouse gas emissions
LSE London Stock Exchange
Net debt Interest-bearing liabilities and lease liabilities less cash and cash
equivalents
Net profit attributable to equity holders of the parent Net profit after tax excluding non-controlling interests from the Group's
operations
Net tangible assets The Group's net assets less goodwill, non-controlling interest and intangible
assets
Net tangible assets per ordinary security Net tangible assets divided by the number of issued and fully paid shares
New energy Woodside uses this term to describe energy technologies, such as hydrogen or
ammonia, that are emerging in scale but which are expected to grow during the
energy transition due to having lower greenhouse gas emissions at the point of
use than conventional fossil fuels
NGLs Natural gas liquids
NPAT Net profit after tax attributable to equity holders of the parent
NWS North West Shelf
NYSE New York Stock Exchange
Offsets The compensation for an entity's greenhouse gas emissions within its scope by
achieving an equivalent amount of emission reductions or removals outside the
boundary or value chain of that entity
PRRT Petroleum resources rent tax
PSC Production sharing contract
Revenue from ordinary activities Revenue from the sale of hydrocarbons, processing and services revenue and
shipping and other revenue.
RFSU Ready for start-up
Significant environmental event Unplanned or undesired event resulting in a moderate, medium-term impact on
ecosystem, species, habitat or physical or biological attributes.
Target Woodside uses this term to describe an intention to seek the achievement of an
outcome, where Woodside considers that it has developed a suitably defined
plan or pathway to achieve that outcome
TCFD Taskforce on Climate-related Financial Disclosures
TRIR Total recordable injury rate. The number of recordable injuries (fatalities,
lost workday cases, restricted work day cases and medical treatment cases) per
million work hours
Underlying NPAT Net profit after tax from the Group's operations excluding any exceptional
items
Unit production costs Production costs ($ million) divided by production volume (MMboe)
US, USA United States of America
USD US dollars
WA Western Australia
Conversion factors
Product Unit Conversion factor
Natural gas 5,700 scf 1 boe
Condensate 1 bbl 1 boe
Oil 1 bbl 1 boe
Natural gas liquids (NGLs) 1 bbl 1 boe
Unit LNG conversion factor
Facility
Karratha Gas Plant 1 tonne 8.08 boe
Pluto Gas Plant 1 tonne 8.34 boe
Wheatstone 1 tonne 8.27 boe
The LNG conversion factor from tonne to boe is specific to volumes produced at
each facility and is based on gas composition which may change over time
Units of measure
Term Definition
bbl barrel
Bcf billion cubic feet of gas
boe barrel of oil equivalent
CO(2)-e carbon dioxide equivalent
ha hectare
Mbbl thousand barrels
Mboe thousand barrels of oil equivalent
MMboe million barrels of oil equivalent
MMBtu million British thermal units
MMscf million standard cubic feet of gas
mtpa million tonnes per annum
MW megawatt
Scf standard cubic feet of gas
tpd tonnes per day
About this report
This Half-Year Report 2023 is a summary of Woodside's operations, activities
and financial position as at 30 June 2023. Woodside Energy Group Ltd (ABN 55
004 898 962) is the parent company of the Woodside group of companies. In this
report, unless otherwise stated, references to 'Woodside', 'the company', 'the
Group', 'we', 'us' and 'our' refer to Woodside Energy Group Ltd and its
controlled entities as a whole. The text does not distinguish between the
activities of the parent company and those of its controlled entities.
References to 'H1' refer to the first half of the year, i.e. the period
between 1 January 2023 and 30 June 2023. All dollar figures are expressed in
US currency unless otherwise stated. Production and sales volumes, reserves
and resources are quoted as Woodside share. A glossary of key terms, units of
measure and conversion factors is on pages 53-55.
This report should be read in conjunction with the Annual Report 2022,
Sustainable Development Report 2022 and the Climate Report 2022, available on
Woodside's website, www.woodside.com (http://www.woodside.com) .
Forward looking statements
This report contains forward-looking statements with respect to Woodside's
business and operations, market conditions, results of operations and
financial condition, including, for example, but not limited to, statements
regarding development, completion and execution of Woodside's projects,
expectations regarding future capital expenditures, future results of
projects, operating activities, new energy products, expectations and plans
for renewables production capacity and investments in, and development of,
renewables projects and expectations regarding the achievement of Woodside's
net equity Scope 1 and 2 greenhouse gas emissions targets. All statements,
other than statements of historical or present facts, are forward-looking
statements and generally may be identified by the use of forward-looking words
such as 'guidance', 'foresee', 'likely', 'potential', 'anticipate', 'believe',
'aim', 'estimate', 'expect', 'intend', 'may', 'target', 'plan', 'strategy',
'forecast', 'outlook', 'project', 'schedule', 'will', 'should', 'seek' and
other similar words or expressions. Similarly, statements that describe the
objectives, plans, goals or expectations of Woodside are forward-looking
statements.
Forward-looking statements in this report are not guidance, forecasts,
guarantees or predictions of future events or performance, but are in the
nature of future expectations that are based on management's current
expectations and assumptions. Those statements and any assumptions on which
they are based are subject to change without notice and are subject to
inherent known and unknown risks, uncertainties, assumptions and other
factors, many of which are beyond the control of Woodside, its related bodies
corporate and their respective officers, directors, employees, advisers or
representatives. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include, but are not
limited to, fluctuations in commodity prices, actual demand, currency
fluctuations, geotechnical factors, drilling and production results, gas
commercialisation, development progress, operating results, engineering
estimates, reserve and resource estimates, loss of market, industry
competition, environmental risks, climate related risks, physical risks,
legislative, fiscal and regulatory developments, changes in accounting
standards, economic and financial markets conditions in various countries and
regions, political risks, project delay or advancement, regulatory approvals,
the impact of armed conflict and political instability (such as the ongoing
conflict in Ukraine) on economic activity and oil and gas supply and demand,
cost estimates, the effect of future regulatory or legislative actions on
Woodside or the industries in which it operates, including potential changes
to tax laws, and the impact of general economic conditions, inflationary
conditions, prevailing exchange rates and interest rates and conditions in
financial markets.
In addition to the summary of 'Principal risks and uncertainties' on page 16
of this report, a more detailed summary of the key risks relating to Woodside
and its business can be found in the "Risk" section of Woodside's most recent
Annual Report released to the Australian Securities Exchange and the London
Stock Exchange and in Woodside's most recent Annual Report on Form 20-F filed
with the United States Securities and Exchange Commission and available on the
Woodside website at
https://www.woodside.com/investors/reports-investor-briefings. You should
review and have regard to these risks when considering the information
contained in this report.
If any of the assumptions on which a forward-looking statement is based were
to change or be found to be incorrect, this would likely cause outcomes to
differ from the statements made in this report.
All forward-looking statements contained in this report reflect Woodside's
views held as at the date of this report and, except as required by applicable
law, Woodside does not intend to, undertake to, or assume any obligation to,
provide any additional information or update or revise any of these statements
after the date of this report, either to make them conform to actual results
or as a result of new information, future events, changes in Woodside's
expectations or otherwise.
Investors are strongly cautioned not to place undue reliance on any
forward-looking statements. Actual results or performance may vary materially
from those expressed in, or implied by, any forward-looking statements. None
of Woodside nor any of its related bodies corporate, nor any of their
respective officers, directors, employees, advisers or representatives, nor
any person named in this report or involved in the preparation of the
information in this report, makes any representation, assurance, guarantee or
warranty (either express or implied) as to the accuracy or likelihood of
fulfilment of any forward-looking statement, or any outcomes, events or
results expressed or implied in any forward-looking statement in this report.
Past performance (including historical financial and operational information)
is given for illustrative purposes only. It should not be relied on as, and is
not necessarily, a reliable indicator of future performance, including future
security prices.
Non-IFRS Measures
Throughout this report, a range of financial and non-financial measures are
used to assess Woodside's performance, including a number of financial
measures that are not defined in, and have not been prepared in accordance
with, International Financial Reporting Standards (IFRS) and are not
recognised measures of financial performance or liquidity under IFRS (Non-IFRS
Financial Measures). These measures include EBIT, EBITDA excluding impairment,
Gearing, Underlying NPAT, Net debt, Free cash flow, Capital expenditure,
Exploration expenditure, Investment expenditure, Net tangible assets, and Net
tangible asset per ordinary security. These Non-IFRS Financial Measures are
defined in the glossary on pages 53-55 of this report. A quantitative
reconciliation of these measures to the most directly comparable financial
measure calculated and presented in accordance with IFRS can be found in the
Alternative Performance Measures section of this report on pages 51-52.
Woodside's management uses these measures to monitor Woodside's financial
performance alongside IFRS measures to improve the comparability of
information between reporting periods and business units and Woodside believes
that the Non-IFRS Financial Measures it presents provide a useful means
through which to examine the underlying performance of its business.
Undue reliance should not be placed on the Non-IFRS Financial Measures
contained in this report and these Non-IFRS Financial Measures should be
considered in addition to, and not as a substitute for, or as superior to,
measures of financial performance, financial position or cash flows reported
in accordance with IFRS. Non-IFRS Financial Measures are not uniformly defined
by all companies, including those in Woodside's industry. Accordingly, they
may not be comparable with similarly titled measures and disclosures by other
companies.
Climate strategy and emissions data
All greenhouse gas emissions data in this report are estimates, due to the
inherent uncertainty and limitations in measuring or quantifying greenhouse
gas emissions, and our methodologies for measuring or quantifying greenhouse
gas emissions may evolve as best practices continue to develop and data
quality and quantity continue to improve.
Woodside "greenhouse gas" or "emissions" information reported are net equity
Scope 1 greenhouse emissions, Scope 2 greenhouse emissions, and/or Scope 3
greenhouse emissions, unless otherwise stated.
For more information on Woodside's climate strategy and emissions data refer
to Woodside's Climate Report 2022 available on the Woodside website at
https://www.woodside.com/sustainability/climate-change.
No express or implied prices
This report does not include any express or implied prices at which Woodside
will buy or sell financial products.
Contacts:
INVESTORS MEDIA
Matthew Turnbull (Group) Christine Forster
M: +61 410 471 079 M: +61 484 112 469
E: christine.forster@woodside.com
Sarah Peyman (Australia)
M: +61 457 513 249
Rohan Goudge (US)
M: +1 (713) 679-1550
E: investor@woodside.com
This announcement was approved and authorised for release by Woodside's
Disclosure Committee.
1 Calculated based on Woodside's closing share price on 30 June 2023 of
A$34.44 and a US$:A$ exchange rate of 0.67.
2 Announced 8 August 2023. LJ Scarborough Pty Ltd is currently a wholly
owned subsidiary of LNG Japan Corporation, which is a 50:50 joint venture
between Sumitomo Corporation and Sojitz Corporation.
3 Throughout this report, H1 2022 reflects the performance of the interests
acquired as part of the merger with BHP's Petroleum business from 1 June 2022.
4 This is an alternative performance measure (APM) which is a non-IFRS
measure that is unaudited. Woodside believes this non-IFRS measure provides
useful performance information, however it should not be considered as an
indication of, or as a substitute for, statutory measures as an indicator of
actual operating performance (such as net profit after tax or net cash from
operating activities) or any other measure of financial performance or
position presented in accordance with IFRS. Refer to Alternative Performance
Measures for a reconciliation for these measures to Woodside's financial
statements on pages 51-52 and Non-IFRS Measures on page 56 for more
information about non-IFRS measures.
5 Net profit after tax attributable to equity holders of the parent.
6 The global operations effective income tax rate (EITR) is 13.9%. As a
result of the final investment decision to develop the Trion resource in 2023,
the Group has recognised deferred tax assets of $319 million, resulting in a
reduction of the global EITR from 29.6% to 13.9%. The EITR is calculated as
the Group's income tax expense divided by profit before income tax. EITR for
H1 2022 is 32.9%.
7 H1 2022 comparative has been restated due to the reclassification of
purchases of shares and payments relating to employee share plans from cash
flows from financing activities to cash flows from operating activities.
8 Excludes the effect of Global Infrastructure Partners' (GIP) additional
contribution to Pluto Train 2.
9 Excludes prior period expenditure written off and permit amortisation and
includes evaluation expense.
10 Excludes exploration capitalised.
11 Cash flow from operating activities less cash flow from investing
activities. Free cash flow of $294 million includes the impact of collateral
receipts of $332 million against hedging activities.
12 Includes production of 90.8 MMboe from Woodside reserves and 0.5 MMboe
primarily from feed gas purchased from Pluto non-operating participants
processed through the Pluto-KGP Interconnector.
13 Comparisons are to half-year ended 30 June 2022.
14 These are non-IFRS measures. Refer to Alternative Performance Measures
for a reconciliation for these measures to Woodside's financial statements on
pages 51-52 and Non-IFRS Measures on page 56 for more information about
non-IFRS measures.
15 Cash flow from operating activities less cash flow from investing
activities. Free cash flow of $294 million includes the impact of collateral
payments of $332 million against hedging activities.
16 The North West Shelf consists of a number of active joint ventures.
Woodside's participating interest is 33.33% in all of these apart from the
joint ventures with CNOOC. Woodside's participating interest in the CLNG JV is
25% and in the Extended Interest JVs is 31.567%.
17 The increase in production is driven by an additional five months of
contributions from the former BHPP assets.
18 LJ Scarborough Pty Ltd (LNG Japan) is currently a wholly owned subsidiary
of LNG Japan Corporation, which is a 50:50 joint venture between Sumitomo
Corporation and Sojitz corporation.
19 Woodside's net equity Scope 1 and Scope 2 greenhouse gas emissions
reduction targets are for net equity Scope 1 and 2 GHG emissions, with a
targeted reduction of 15% by 2025 and 30% by 2030, and an aspiration of net
zero by 2050. The net emissions reduction targets are relative to a starting
base representative of the gross annual average equity Scope 1 and 2 GHG
emissions over 2016-2020 and may be adjusted (up or down) for potential equity
changes in producing or sanctioned assets with a final investment decision
prior to 2021. Refer to the Glossary and Woodside's Climate Report 2022 for
further information on the way in which Woodside defines and calculates
greenhouse gas emissions.
20 Emissions resulting from Trion are subject to Woodside's net equity Scope
1 and 2 greenhouse gas emissions reduction target and its net zero aspiration.
These emissions will be managed in accordance with Woodside's decarbonisation
strategy using the plans and practices disclosed in Woodside's Climate Report
2022. See sections 3.5 and 3.6 of Woodside's Climate Report 2022 for further
information.
21 Refer to the Glossary for further information on the way in which
Woodside defines new energy.
22 Refer to page 27 of Woodside's Climate Report 2022 and slide 9 of the
announcement 'Woodside Approves Investment in Trion Development" for further
information on the six key-climate related considerations.
23 Comparisons are to half-year ended 30 June 2022.
24 Includes lease assets and liabilities as a result of AASB 16 Leases. Net
Tangible Assets is a non-IFRS measure. Refer to Alternative Performance
Measures for a reconciliation for these measures to Woodside's financial
statements on pages 51-52.
25 See IFRS Foundation 2021: Climate Related Disclosures Prototype. Appendix
A. The IFRS published a further consultation document subsequent to the 2021
prototype. As it did not contain an updated definition of Paris-Aligned
scenarios Woodside has retained use of the previous edition.
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