REG - Woodside Energy Grp. - Half-Year 2024 Report
27/08/2024 07:00
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RNS Number : 7409B Woodside Energy Group Ltd 27 August 2024
HALF-YEAR REPORT FOR PERIOD ENDED 30 JUNE 2024
ASX: WDS | NYSE: WDS | LSE: WDS
Tuesday, 27 August 2024
High-quality business delivering strong dividends
Financial highlights
· Net profit after tax of $1,937 million.
· Underlying net profit after tax of $1,632 million. 1 (#_ftn1)
· Operating cash flow of $2,393 million and positive free cash flow
of $740 million.(1)
· Australian tax and royalty payments of
A$2,682 million.
· Liquidity of $8,479 million.(1)(, 2 (#_ftn2) )
· Determined a fully franked interim dividend of 69 US
cents per share (cps), at the top end of the payout range and representing a
half-year annualised dividend yield of 7.3%.(( 3 (#_ftn3) ))
Operational highlights
· Delivered H1 production of 89.3 MMboe (491 Mboe/d). Full year
production guidance remains unchanged.
· Reduced unit production cost to $8.3/boe ($8.8/boe in H1 2023)
despite the inflationary environment.
· Achieved first oil at the Sangomar Project in June 2024.
Subsequent to the period the project achieved nameplate capacity with gross
production rates of 100,000 barrels per day.
· Continued to embed the Field Leadership Program to strengthen our
learning culture and improve safety outcomes.
· Took a final investment decision (FID) on Lambert West, Xena-3
and Atlantis Drill Centre 1 Expansion (DC1X).
Business highlights
· The Scarborough Energy Project was 67% complete at the end of H1
2024, with first LNG cargo expected in 2026. 4 (#_ftn4)
· Signed an agreement with JERA for the sale of a 15.1%
non-operated participating interest in the Scarborough Joint Venture (SJV).
Estimated total consideration for the sale is $1,400 million. 5 (#_ftn5)
· Completed the sale of a 10% non-operated participating interest
in the SJV to LNG Japan for $910 million. 6 (#_ftn6)
· Signed sale and purchase agreements (SPAs) with Korea Gas
Corporation (KOGAS) and CPC Corporation, Taiwan (CPC) for the long-term supply
of LNG to Korea and Taiwan respectively.
· Continued to progress the Trion Project engineering, procurement
and contracting.
· Subsequent to the period, Woodside entered into two transactions
that have significant cash generation potential to underpin long-term
shareholder value. 7 (#_ftn7) These are agreements to acquire:
o Tellurian, including its US Gulf Coast Driftwood LNG development
opportunity,
for an all-cash payment of approximately $900 million; and
o OCI's Clean Ammonia Project in Beaumont, Texas for an all-cash
consideration of approximately $2,350 million.
Summary
Woodside reported net profit after tax (NPAT) for the half-year of $1,937
million. Production was 89.3 MMboe (491 Mboe/d) and underlying NPAT was $1,632
million, down 14% on the corresponding period in 2023.
The directors have determined a fully franked interim dividend of 69 US cents
per share (cps), representing an approximately 80% payout ratio of underlying
NPAT.
Woodside Energy CEO Meg O'Neill said the results demonstrate how Woodside's
high performing base business continues to deliver strong dividends to
shareholders while laying a foundation for future success.
"We maintained high reliability of 97.9% at our operated LNG assets and
continue to manage costs effectively in an inflationary environment.
"In the first half of 2024 we delivered on a significant element of our
strategy, achieving first production from Sangomar, Senegal's first offshore
oil project. Production ramp-up at Sangomar has progressed well and subsequent
to the period, peak gross production rate of 100,000 barrels per day was
achieved, demonstrating Woodside's world-class project execution capability.
Sangomar will deliver enduring value for Woodside shareholders and benefits
for our partner Petrosen and the people of Senegal.
"We also made good progress on the Scarborough Energy Project in Western
Australia, which is more than two-thirds complete and on track for first LNG
cargo in 2026. Work on the Scarborough floating production unit passed a major
milestone with structural completion of the topsides. Pluto Train 2 site works
continued with 29 of the 51 modules delivered and 25 modules set in position.
"We completed the sale of a 10% non-operating participating interest in the
Scarborough Joint Venture (SJV) to LJ Scarborough Pty Ltd (LNG Japan) for $910
million and executed a binding sale and purchase agreement for the sale of a
further 15.1% non-operating participating interest in the SJV to JERA.
"Long-term LNG supply agreements were also reached with Korea Gas Corporation
and with CPC Corporation, Taiwan, underlining the importance of LNG in
regional energy security.
"Our agreement last month to acquire Tellurian, including its US Gulf Coast
Driftwood LNG development further strengthens our LNG portfolio, complementing
our existing Pacific basin position with additional exposure in the Atlantic
basin. Woodside expects to leverage its global LNG expertise to unlock this
development and enable long-term cashflow generation.
"In our new energy business, all primary environmental approvals have been
secured for the Hydrogen Refueller @H2Perth, which is targeting supplying
industrial customers in Western Australia in 2025. We have also progressed
several carbon capture and storage (CCS) opportunities, including the signing
of a memorandum of understanding between the Angel CCS Joint Venture and Yara
Pilbara Fertilisers to study the use of the technology.
"We continue to deliver on our strategy to thrive through the energy
transition whilst maintaining our disciplined capital management. Our
agreement to acquire OCI's Clean Ammonia project in Texas positions Woodside
to be an early mover in the emerging lower carbon ammonia industry and makes a
significant contribution to delivering our Scope 3 targets.
"Above all, we are committed to continually improving safety and have focused
on strengthening our safety culture, simplifying our processes and improving
our systems.
"As we officially mark 70 years as an Australian company, I am proud that
Woodside is facing the future with the same spirit of innovation and
determination that our founders showed."
Financial summary
Key metrics
H1 H1 Change
2024
2023
%
Operating revenue $ million 5,988 7,400 (19%)
EBITDA excluding impairment 8 (#_ftn8) $ million 4,371 4,888 (11%)
EBIT(8) $ million 2,362 2,791 (15%)
Net profit after tax (NPAT) 9 (#_ftn9) (, 10 (#_ftn10) ) $ million 1,937 1,740 11%
Underlying NPAT(8) $ million 1,632 1,896 (14%)
Net cash from operating activities 11 (#_ftn11) $ million 2,393 2,951 (19%)
Capital expenditure(8)(, 12 (#_ftn12) ) $ million 2,365 2,769 (15%)
Exploration expenditure(8)(, 13 (#_ftn13) ) $ million 112 187 (40%)
Free cash flow(8)(,)(11)(, 14 (#_ftn14) ) $ million 740 314 136%
Dividends distributed $ million 1,310 1,519 (14%)
Interim dividend declared US cps 69 80 (14%)
Key ratios
Earnings US cps 102.2 91.7 11%
Gearing(8) % 13.3 8.2 5.1%
Production volumes 15 (#_ftn15) (, 16 (#_ftn16) )
Gas MMboe 60.9 63.5 (4%)
Liquids MMboe 28.4 27.8 2%
Total MMboe 89.3 91.3 (2%)
Production volumes per day(15)
Gas MMscf/d 1,907 1,999 (5%)
Liquids Mbbl/d 156 154 1%
Total Mboe/d 491 504 (3%)
Sales volumes(16)
Gas MMboe 65.0 72.0 (10%)
Liquids MMboe 28.9 26.8 8%
Total MMboe 93.9 98.8 (5%)
Sales volumes per day
Gas MMscf/d 2,035 2,268 (10%)
Liquids Mbbl/d 159 148 7%
Total Mboe/d 516 546 (5%)
Appendix 4D
Results for announcement to the market
More information is available on page 44
US$ million
Revenue from ordinary activities Decreased 19% 17 (#_ftn17) to 5,988
Profit from ordinary activities after tax attributable to members Increased 11%(17) to 1,937
Net profit for the period attributable to members Increased 11%(17) to 1,937
Interim dividend - fully franked 69 US cps H1 2024
Record date for determining entitlements to the dividend 6 September 2024
Net profit after tax reconciliation
The following table summarises the variance between the H1 2023 and H1 2024
results for the contribution of each line item to NPAT.
US$m Primary reasons for variance
2023 H1 reported NPAT 1,740
Revenue from sale of hydrocarbons
Price (1,077) Lower average realised prices.
Volume (364) Fewer third-party LNG trades classified as revenue and natural field decline.
Other operating revenue 29 Increase in processing and services revenue.
Cost of sales 600 Lower royalties, trading costs and depreciation expense in H1 2024 and Pluto
turnaround activities in the prior period.
Other income 181 Gain on SJV sell-down to LNG Japan.
Other expenses 134 Lower fair value losses on embedded derivatives.
Impairment losses 68 Pre-tax impairment of Pyrenees recognised in prior period.
Income tax and PRRT expense 724 Recognition of the Trion deferred tax asset (DTA) offset by derecognition of
the Pluto PRRT DTA, both not present in the current period.
H1 2024 includes the first-time recognition of a net DTA for the Sangomar
Project.
Other (98)
2024 H1 reported NPAT 1,937
2024 H1 NPAT adjustments (305) Adjustment for the recognition of the Sangomar DTA.
2024 H1 underlying NPAT 1,632
Capital management
Woodside's capital management framework provides us with the flexibility to
optimise value and shareholder returns delivered from our portfolio.
Interim dividend and dividend reinvestment plan
A 2024 fully franked interim dividend of 69 US cps has been determined,
representing a half-year annualised dividend yield of 7.3%. 18 (#_ftn18) The
total amount of the interim dividend payment is $1,310 million which
represents approximately 80% of underlying NPAT for the first half of
2024. 19 (#_ftn19)
The dividend reinvestment plan (DRP) remains suspended.
Liquidity and Balance sheet
In H1 2024, Woodside generated $2,393 million of cash flow from operating
activities and delivered positive free cash flow of $740 million.(19)(,( 20
(#_ftn20) ))
Woodside increased its standby debt facilities from $6,050 million to $6,500
million. Liquidity at the end of the period was $8,479 million and Woodside's
drawn debt at the end of the period was $5,850 million.
Woodside entered into a $1,000 million 10-year loan with the Japan Bank for
International Cooperation (JBIC) to support the Scarborough Energy Project
which was available for drawdown from the end of June 2024. In addition,
Woodside entered into a $450 million 10-year loan from commercial banks for
general corporate purposes. Subsequent to the period, $1,550 million of
undrawn facilities were cancelled. This cancellation has the effect of
reducing our liquidity by $1,550 million. As part of active debt management,
Woodside continues to review options to further access the debt market.
Net debt at the end of the period increased 67% from H1 2023 to $5,388
million, in line with planned capital expenditure.(19) Woodside's gearing at
the end of the first half was 13.3%, within our target range of 10-20%.(19)
As a result of the recent announcements to acquire Tellurian, including its
Driftwood LNG development, and OCI's Clean Ammonia Project, Woodside expects
its gearing to be above the top end of the target range for a period of time
as the balance sheet is managed through the investment cycle.
Woodside's commitment to an investment grade credit rating remains unchanged
and supports our aim of providing sustainable returns to shareholders and
investing in future growth opportunities, in accordance with the capital
allocation framework.
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 2024, Woodside has placed oil price hedges for:
· approximately 29.3 MMboe of 2024 production at an average price
of $75.6 per barrel, of which approximately 14.4 MMboe has been delivered; and
· a further 15 MMboe of 2025 production at an average price of
approximately $81.2 per barrel.
Woodside has also placed a number of hedges for Corpus Christi LNG volumes to
protect against downside commodity price risk. These hedges are Henry Hub and
Title Transfer Facility (TTF) commodity swaps. Approximately 70% of Corpus
Christi volumes for the remainder of 2024, 48% of 2025 and 9% of 2026 volumes
have reduced pricing risk as a result of hedging activities.
Australian 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 production in H1 2024 was 26.9 MMboe. This was a 15%
increase compared with H1 2023 which was impacted by planned turnaround
activities, partially offset by reduced reliability following an offshore trip
and a separate electrical fault onshore in H1 2024.
Woodside took FID for the Xena-3 well to support ongoing production from the
project and started-up the produced water handling unit at the Pluto A
platform.
Drilling of the PLA-08 production well commenced in June 2024.
Approvals were also granted to extend Pluto gas flows through the
Pluto-Karratha Gas Plant Interconnector (Interconnector) from April 2024 to
approximately December 2025, enabling continued acceleration of LNG and
domestic gas production. The Interconnector generated incremental revenue of
$315 million in H1 2024.
Woodside is operator and holds a 90% participating interest.
Woodside Solar
Woodside is progressing a potential opportunity to reduce gross Scope 1
greenhouse gas emissions at Pluto LNG by utilising solar energy from the
proposed Woodside Solar Project.
In H1 2024, Woodside continued to work closely with the Western Australian
Government to progress its plans to develop common user transmission
infrastructure that will be required to transmit renewable energy from the
proposed solar facility to Pluto LNG via the North-West Interconnected System.
Woodside Solar FID and first solar energy import timing are subject to
securing access to this new power transmission infrastructure and finalising
associated commercial agreements.
North West Shelf Project
The North West Shelf Project (NWS) consists of three offshore platforms and
the onshore Karratha Gas Plant (KGP) which includes five onshore LNG
processing trains and two domestic gas trains.
Woodside's share of production in H1 2024 was 19.6 MMboe. This was a 14%
decrease compared with H1 2023 due to planned offshore maintenance and natural
field decline. In H1 2024, 6.0 MMboe of Pluto gas was processed at KGP
through the Interconnector.
Woodside continues to look for opportunities to harness value from our
late-life assets. In H1 2024, the NWS Joint Venture participants took FID on
the Lambert West Project which will support ongoing production from NWS.
Discussions continue between the NWS Joint Venture participants and other
resource owners for the processing of third-party gas to utilise ullage at
KGP. Processing of Waitsia gas continued and is expected to ramp up when the
Waitsia Stage 2 facility commences production, which is expected in late 2024.
As the NWS celebrates 40 years of operations, the project is entering a period
of production decline. KGP currently has processing ullage due to natural
field decline and the current level of third-party gas processing demand. To
manage both operating costs and emissions, NWS is preparing to take one LNG
train offline between late 2024 and mid-2025.
State and Commonwealth regulatory approval processes are progressing for the
North West Shelf Project Extension, which will support long-term operations
and processing of future third-party gas resources at KGP.
Woodside is operator and holds a 33.33% participating interest.
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 H1 2024 was 5.8 MMboe. This was a
12% decrease compared with H1 2023, due to unplanned outages impacting the
Julimar subsea production system and the Wheatstone facility respectively.
Woodside is operator and holds a 65% participating interest in the
Julimar-Brunello fields.
Woodside holds a 13% non-operating participating interest in the Wheatstone
Project.
Bass Strait
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 the Kipper Unit Joint Venture (KUJV).
Woodside's share of production from Bass Strait was 8.5 MMboe in H1 2024, a
22% decrease from H1 2023 predominantly due to lower domestic gas
market demand, offshore maintenance, and reduced crude oil production due to
field decline. All of Woodside's share of the gas produced from Bass Strait
is supplied into the eastern Australian domestic gas market.
The GBJV is optimising facilities through the Gippsland Asset Streamlining
project as production rates from the Bass Strait decline. As planned,
production from the West Kingfish and Halibut oil platforms ceased in March
and April 2024 respectively.
The Kipper Compression Project offshore modules have been successfully
installed. The project is planning for startup in Q3 2024, to enable continued
supply of gas to the domestic market.
Woodside holds a 50% non-operating participating interest in the GBJV and a
32.5% non-operating participating interest in the KUJV.
Other Australian oil and gas assets
Woodside operates three FPSO facilities off the north west coast of Western
Australia. These are the Okha FPSO (Woodside participating interest: 50%),
Ngujima-Yin FPSO (Woodside participating interest: 60%) and Pyrenees FPSO
(Woodside participating interest: 40% in WA-43-L and 71.4% in WA-42-L).
Woodside's share of production from the FPSO assets was 3.0 MMboe in H1 2024.
This was a 3% decrease from H1 2023 primarily due to the planned five-yearly
Pyrenees FPSO maintenance turnaround and the Pyrenees shut-in following a
produced-water leak identified subsea at the facility. Production at Pyrenees
recommenced in June 2024 and the produced-water leak has been rectified.
Macedon (Woodside participating 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 3.9 MMboe, down from 4.1 MMboe
in H1 2023. The Macedon facility delivered approximately 11% of the Western
Australian domestic gas market supply in H1 2024.
International operations
Sangomar
The Sangomar Field Development Phase 1 is a deepwater project including a
stand-alone FPSO facility moored approximately 100 kilometres offshore Senegal
and subsea infrastructure that is designed to allow subsequent development
phases.
First oil was achieved in June 2024, marking the delivery of Senegal's first
offshore oil project. Woodside's share of production from Sangomar in H1 2024
was 0.5 MMboe. Subsequent to the period, nine production wells have come
online, and the project successfully achieved peak gross rate of 100,000
barrels per day. Commissioning activities are expected to continue through
2024.
Sales of the initial Sangomar crude cargoes have been finalised, with interest
received from European and Asian refiners. Subsequent to the period, the first
two cargoes were loaded and delivered to Europe and a third cargo was loaded
for delivery to Asia.
The project was 98% complete at the end of H1 2024. The development drilling
program continues with 22 of the 23 wells drilled and completed. 21 (#_ftn21)
An additional 24th well approved by the Rufisque, Sangomar and Sangomar Deep
(RSSD) Joint Venture was also drilled and completed.
Woodside has filed action with the High Court of Dakar disputing a tax
assessment from the Senegalese tax authorities. The majority of the tax claims
relate to the application of an exemption that applied during the project
development phase.
Woodside is operator and has an 82% participating interest in the project.
Shenzi
Shenzi is a conventional oil and gas field developed through a tension leg
platform located in the US Gulf of Mexico. Woodside's share of production in
H1 2024 was 5.2 MMboe. This was a 7% decrease compared with H1 2023 due to
natural field decline and maintenance activity. Woodside is operator and holds
a 72% participating interest.
Atlantis
Atlantis is a conventional oil and gas development and is one of the largest
producing fields in the US Gulf of Mexico. The Atlantis development includes a
semi-submersible facility with 28 active producer wells and three water
injector wells.
Woodside's share of production in H1 2024 was 5.1 MMboe. This was a 19%
decrease compared with H1 2023 due to planned turnaround activity.
In H1 2024, the first horizontal well in the field was successfully completed,
potentially unlocking future infill opportunities for the asset. An FID was
taken at DC1X, which will be a two-well tie back to the Atlantis facility
through the existing DC1 manifold in the southwest of the field. Woodside
holds a 44% non-operating participating interest.
Mad Dog
Mad Dog is a conventional oil and gas development located in the US Gulf of
Mexico. Mad Dog Phase 2 is a development of the southern flank of the Mad Dog
field though the new Argos floating production facility.
Woodside's share of production in H1 2024 was 6.0 MMboe. This was a 122%
increase compared with H1 2023 primarily due to a full period of production
from Mad Dog Phase 2.
The Argos facility continued to safely and systematically ramp up production
in H1 2024, following completion of the riser flex joint remediation, and
achieved peak production of approximately 130 Mbbl/d. The first water
injection at the Argos platform was achieved in April 2024. Woodside holds a
23.9% non-operating participating interest.
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 wellhead platforms.
Woodside's share of production in H1 2024 was 4.5 MMboe. This was a 20%
decrease compared with H1 2023 due to the planned maintenance activity.
In H1 2024, Woodside continued to pursue opportunities to maximise value and
safely optimise production and operating costs. A planned facility maintenance
turnaround was completed in June 2024.
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.
Marketing and Trading
The marketing segment's profit before tax and net finance costs in H1 2024 was
$218 million. This reflected the optimisation activities and incremental value
generated through the marketing, trading and shipping of Woodside's oil and
gas and through third-party purchased volumes.
In H1 2024, Woodside signed SPAs with KOGAS and CPC for the long-term supply
of LNG to Korea and Taiwan respectively. The KOGAS SPA is for the supply of
approximately 0.5 Mtpa of LNG from 2026, for a period of 10.5 years.
The CPC SPA is for the supply of approximately 6 million tonnes of LNG over 10
years, from July 2024. Under the CPC SPA, Woodside may also deliver
approximately 8.4 million tonnes of LNG for a further 10 years, from 2034 to
2043. 22 (#_ftn22)
LNG delivered under both SPAs will be sourced from volumes across Woodside's
global portfolio.
In Western Australia, Woodside executed 14 PJ of sales for delivery into the
domestic market from May to the end of 2024. Woodside continues to support the
Western Australian domestic market by offering additional supply for 2025,
2026 and 2027.
A record quantity of trucked LNG (approximately 850 TJ) was delivered in H1
2024 to customers in northern Western Australia. Since the commencement of
operations at the Pluto LNG Truck Loading Facility in 2019, Woodside has
delivered more than 2,000 trailers of LNG (approximately 2,240 TJ), offering a
lower-carbon alternative to diesel.(( 23 (#_ftn23) ))
In the east coast of Australia, Woodside was granted an exemption under the
applicable domestic gas price cap legislation. The exemption provides Woodside
the opportunity to increase delivery to the domestic market by more than 260
PJ (100% share) through to 2033 if needed. Woodside conducted an expression of
interest for Bass Strait supply for 2025 and 2026 totalling 50 PJ and is
progressing towards final offers in line with the conditions set under the
Mandatory Code of Conduct.
In Trinidad and Tobago, incremental gas production from the Angostura field
was placed under the existing gas SPA with the National Gas Company of
Trinidad and Tobago (NGC). This ongoing optimisation maximises our production
efficiency and provides a reliable supply of natural gas to meet growing
customer demand.
Woodside's marketing and trading portfolio is supported by our shipping
capacity, which includes seven vessels under long-term charter and multiple
vessels on short-term charter. A new 174,000m(3) long-term charter LNG vessel,
the Woodside Scarlet Ibis, was delivered in June 2024 and the vessel's
efficiency will support efforts to lower the carbon intensity of Woodside's
LNG deliveries.
Projects
Scarborough Energy Project
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 floating production unit (FPU) with
eight wells drilled in the initial phase and 13 wells drilled over the life of
the Scarborough field. Expansion of the Pluto LNG facility includes
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 project was 67% complete at the end of H1 2024. 24 (#_ftn24) Pluto Train
2 module delivery and site works progressed and at the end of H1 2024, 29
modules were delivered to site, with 25 modules set in position. Site
integration activities continue to ramp up and are expected to peak in H2
2024.
The FPU reached a major milestone, achieving structural completion of the
topsides. The monoethylene glycol (MEG) module and living quarters were
installed on the topsides and, subsequent to the period, the hull entered its
second dry dock.
Trunkline installation is more than 50% complete and the pipe diameter has
transitioned from 36" to 32". All crossings of other pipelines are complete.
Installation and testing of the three subsea flowlines has been successfully
completed. The drilling campaign commenced with the installation of conductors
for all eight wells. Two development wells have been drilled, with one well
completed and the other to be completed as part of the forward campaign.
Reservoir quality was in line with expectations.
All major engineering reviews for Pluto Train 1 modifications have been
completed and approximately 80% of materials and equipment have been ordered.
Contractor mobilisation to the Thailand module yard and Pluto site commenced.
Subsequent to the period, the Integrated Remote Operating Centre building
works were completed with fit out now underway.
In February 2024, Woodside signed an agreement with JERA, as part of a broader
strategic relationship, for the sale of a 15.1% non-operated participating
interest in the SJV. Estimated total consideration for the sale is $1,400
million, subject to completion which is targeted for the second half of
2024. 25 (#_ftn25)
In March 2024, Woodside completed the sale of a 10% non-operated participating
interest in the SJV to LNG Japan for $910 million. 26 (#_ftn26)
Woodside is operator and holds a 90% participating interest in Scarborough and
a 51% participating interest in Pluto Train 2. 27 (#_ftn27)
Trion
Trion is an oil development located in the Gulf of Mexico, approximately 180
km off the Mexican coastline and 30 km south of the United States/Mexico
maritime border. 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.
The project progressed engineering, procurement and contracting (EPC)
activities in H1 2024. The FPU detailed engineering achieved key milestones
including the completion of integrated model reviews of the hull and topsides
with key vendor data and formal risk assessments of the facility's design and
operability. Technical maturity in engineering has enabled the FPU EPC
contractor to start procurement of equipment.
Model testing was completed as part of FSO front-end engineering design
(FEED). Other key achievements include completion of hull and disconnectable
turret module model reviews and the hazards and operability assessment.
Subsea delivery also advanced with the start of manufacturing activities.
Key contracts were awarded for subsea marine installation, FPU dry
transportation, gas gathering line pipe and drilling equipment and
consumables.
Woodside is currently carrying Pemex's portion of development capital
expenditure (approximately $460 million post FID) and Pemex is not expected to
contribute to cash calls until 2025.
Woodside is targeting first oil in 2028. Woodside is operator and holds a 60%
participating interest in the project.
Driftwood LNG
Subsequent to the period, Woodside entered into a definitive agreement to
acquire all issued and outstanding common stock of Tellurian including its
owned and operated US Gulf Coast Driftwood LNG development opportunity.
Driftwood LNG is a fully permitted, pre-FID development opportunity located
near Lake Charles, Louisiana. The current development plan comprises five LNG
trains through four phases, with a total permitted capacity of 27.6 Mtpa. Once
operating, the Driftwood LNG development will increase Woodside's LNG
portfolio, complementing the significant Pacific basin exposure with
additional Atlantic basin exposure.
The transaction remains subject to approvals and conditions precedent, with
completion targeted in Q4 2024. If completed, Woodside is targeting FID
readiness for Phase 1 of the development opportunity from Q1 2025.
Decommissioning
Woodside continued execution of planned decommissioning activities in H1 2024,
spending approximately $325 million across our portfolio.
At Enfield, the final two of 18 xmas trees were removed and wellhead severance
activities commenced. Deconstruction of the Nganhurra riser turret mooring
(RTM) was completed at the Australian Marine Complex, enabling more than 95%
of the RTM to be recycled or reused.
At Griffin, all rigid piping has been recovered and wellhead severance
activities have been completed.
The Transocean Endurance drill rig mobilised to the Stybarrow field and
commenced the ten well plug and abandonment (P&A) campaign.
At Bass Strait, the GBJV continued to progress significant decommissioning
activity including ongoing execution of P&A of platform wells and
commenced execution of the P&A of two subsea wells. In addition, FEED for
the removal of platforms no longer in use has progressed.
Exploration and Development
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 H1 2024, Woodside continued pre-FEED engineering studies to mature the
technical definition and cost estimate for the deepwater infield host.
Marketing and commercial discussions continue with key stakeholders to
evaluate options to monetise the resource.
Woodside is operator and holds a 70% participating interest.
Browse
The Browse development comprises the Calliance, Brecknock and Torosa gas and
condensate fields located approximately 425 km north of Broome, Western
Australia.
Key work scopes continued in support of the proposed Browse to NWS Project
development, including engagement with regulators on environmental and
regulatory approvals and progressing commercial discussions. A carbon capture
and storage solution has been incorporated into the offshore infrastructure,
designed to sequester the majority of Browse reservoir CO(2). In June 2024, a
Declaration of an Identified Greenhouse Gas Storage Formation was made by
the Commonwealth Government over the Calliance Storage Formation within the
G-8-AP Greenhouse Gas Assessment Permit.
Woodside is operator and holds a 30.6% participating interest.
Liard
The Liard field is an unconventional gas field located in British Columbia,
Canada. Woodside holds a 50% non-operating participating interest.
Sunrise
The Sunrise development comprises the Sunrise and Troubadour gas and
condensate fields, located approximately 450 km north-west of Darwin and 150
km south of Timor-Leste.
The Sunrise Joint Venture participants continued to negotiate a new Production
Sharing Contract, Petroleum Mining Code and fiscal regime with the Australian
and Timor-Leste Governments in H1 2024. The Greater Sunrise Concept Study
commenced in April 2024, with local content and socio-economic data gathering
and engagement with potential site owners planned for H2 2024.
Woodside is operator and holds a 33.44% participating interest.
Exploration
Woodside continued to build its position in the US Gulf of Mexico during the
period, acquiring 18 leases in Lease Sale 261 in the central and western Gulf
of Mexico areas within the highly contested Paleogene trends. Woodside also
participated in the Corvus well (non-operated) in the Gulf of Mexico which
completed drilling in March 2024. The well did not encounter commercial
hydrocarbons and detailed analysis of well results is ongoing.
In Congo, Woodside is participating in the Niamou Marine-1 well (non-operated)
which is currently drilling.
Woodside also continued to optimise its exploration portfolio, exiting blocks
that are no longer considered prospective. This included a decision to exit
Block 2 in the offshore Herodotus basin in Egypt and completing all formal
exit activities for permit WA-356-P in Australia and the Carlisle Bay Block in
Barbados.
New energy
Beaumont Clean Ammonia Project
Subsequent to the period, Woodside entered into a binding agreement to acquire
100% of OCI Clean Ammonia Holding B.V. and its lower carbon ammonia project in
Beaumont, Texas. This acquisition provides Woodside with an early-mover
advantage in the growing lower carbon ammonia market.
Phase 1 of the project, which is expected to exceed Woodside's capital
allocation target for new energy projects has a design capacity of 1.1 Mtpa
and is under construction.
The transaction is subject to an OCI shareholder vote and satisfaction of
customary conditions precedent, with completion targeted in H2 2024. If
completed, Woodside is targeting production of first ammonia from 2025 and
lower carbon ammonia from 2026 following commencement of CCS operations. 28
(#_ftn28)
H2OK
H2OK is a proposed liquid hydrogen project in Ardmore, Oklahoma, and is
expected to produce up to 60 tonnes per day of liquid hydrogen.
In H1 2024, Woodside continued to progress discussions with potential
offtakers on pricing and volumes. Woodside also provided comments on the
proposed 45V Clean Hydrogen Production Tax Credit guidelines issued by the
United States Department of Treasury and the Internal Revenue Service.
Hydrogen Refueller @H2Perth
The Hydrogen Refueller @H2Perth is a proposed self-contained hydrogen
production, storage and refuelling station.
All primary environmental approvals have been secured for the project.
Woodside awarded the major services contract which includes detailed
engineering, construction, commissioning and startup work scopes to enable
progression towards ready for start-up.
Woodside is targeting supply of hydrogen to customers in 2025.
H2Perth
Woodside has changed the H2Perth concept from ammonia and hydrogen production
to liquid hydrogen only, following feedback from potential customers. In
supporting the opportunity, Woodside progressed engineering and technology
studies for large-scale liquefied hydrogen production.
H2TAS
H2TAS is a proposed renewable ammonia and hydrogen production facility to be
located in Tasmania.
Subsequent to the period, Woodside withdrew environmental applications
submitted under the Environmental Management and Pollution Control Act 1994
and Environment Protection and Biodiversity Conservation Act 1999. Woodside
continues to assess the viability of this potential opportunity.
Southern Green Hydrogen
Subsequent to the period, Woodside ceased discussions with Meridian Energy
Limited, Mitsui & Co.,Ltd and Murihiku Regeneration, representing Ngāi
Tahu, regarding a potential collaboration with respect to the Southern Green
Hydrogen Project.
Carbon solutions
Carbon capture and storage (CCS)
Woodside is progressing several CCS opportunities in Australia, including
Angel CCS (as operator), South East Australia (SEA) CCS (non-operator) and
Bonaparte CCS (non-operator).
The proposed Angel CCS Project progressed engineering and marketing activities
to support FEED entry. In April 2024, the Angel CCS Joint Venture announced a
non-binding memorandum of understanding
(https://www.woodside.com/docs/default-source/media-releases/angel-ccs-jv-and-yara-collaborate-on-carbon-capture-and-storage.pdf?sfvrsn=6465c43b_17)
with Yara Pilbara Fertilisers Pty Ltd (Yara) to study the feasibility of using
CCS to decarbonise Yara's existing operations near Karratha in Western
Australia. Terrestrial ecological surveys have been completed and heritage
surveys are scheduled for August 2024.
The Bonaparte CCS Joint Venture progressed appraisal activities in the G-7-AP
Assessment Permit Area, which included the acquisition of the West Peron
Marine 3D Seismic Survey.
The SEA CCS continued to progress engineering studies.
Carbon credits portfolio
Woodside acquires carbon credits through both market purchases and the
development of its own carbon origination projects.
During H1 2024, Woodside began planting activities on approximately 4,900
hectares of land at Woodside-owned properties as part of our Native
Reforestation Project. The full-year program is forecast to plant over 3.2
million mixed biodiverse seedlings. These activities were 40% complete by the
end of H1 2024. Subsequent to the period, Woodside signed an agreement to fund
the reforestation of 5,000 hectares of land in the Chaco region in Paraguay.
The Woodside portion of the project is expected to generate approximately 1.6
million carbon credits over 40 years.
Climate and Sustainability
Climate
Woodside released its Climate Transition Action Plan and 2023 Progress Report
(CTAP) on 27 February 2024. The CTAP was put to a non-binding advisory vote of
shareholders at the 2024 Annual General Meeting (AGM) on 24 April 2024 and
received a vote of 58.36% against the resolution. All other Board proposed
resolutions were approved including the Remuneration Report and Director
elections.
Management is reflecting on the results of the CTAP vote and is engaging with
investors to seek feedback.
In January 2024, Woodside became the first Australian company to join the Oil
and Gas Methane Partnership (OGMP2.0) to voluntarily improve the accuracy and
transparency of methane emissions reporting.
Woodside also committed to providing $12.5 million over a period of five years
to fund the creation of the Woodside-Rice Decarbonisation Accelerator. This
collaboration with Rice University in the United States aims to bring
breakthrough decarbonisation technology to market.
Health, Safety and Environment
Woodside experienced two Tier 2 process safety events in H1 2024. The
contributing factors to these events are understood, with corrective actions
identified. Woodside is strengthening process safety management through an
expanded company-wide Process Safety Critical Role competency development
program in 2024. Woodside is targeting a 95% conformance to training and
assessment requirements for senior roles.
At 30 June 2024, the year-to-date total recordable injury rate was 2.27 per
million work hours compared with 1.86 recorded for full-year 2023. There were
no fatalities or permanent injuries recorded in H1 2024.
To improve safety performance Woodside is focusing on simplifying safety
processes, implementing improvements around safe hardware and engineering
systems, and promoting a learning culture through implementation of its Field
Leadership Program.
Environmental performance remained strong in H1 2024, with no events leading
to any significant environmental impacts.
Supporting local suppliers
Woodside continues to identify opportunities in Australia to award contracts
to local and Indigenous suppliers.
In H1 2024, 16 new local subcontracts were awarded in the Pilbara region for
Pluto Train 2.
In Sangomar, Woodside has progressed work with key 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 Tobago and
the Gulf of Mexico.
In support of the Trion Project's National Content program in Mexico, Woodside
sponsored a second group of 33 small-to-medium-sized suppliers from the
Tamaulipas state to participate in a program called BlueWave. The program
supports the development of suppliers and provides an opportunity to assess
capabilities according to global business standards.
Communities
Woodside released its 2023 Social Contribution Impact Report in April 2024,
outlining its total global social contribution spend of A$33.3 million. This
report was complemented by the North West Community Development Report which
highlights the significant contribution Woodside continues to make in the
Pilbara region of Western Australia as operator of the Karratha Gas Plant,
Pluto LNG and Scarborough Energy Project.
Subsequent to the period, Woodside released its third Reconciliation Action
Plan 2021 - 2025 (RAP) Report. The report reflects on Woodside's progress
against the four pillars outlined in the RAP, namely:
· Respect for Culture and Heritage;
· Economic Participation;
· Capability and Capacity; and
· Stronger Communities.
The RAP demonstrates that although Woodside has made significant advancements
towards our stated targets, continued focus is needed to achieve our goals
relevant to the four pillars.
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 arise from 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
40-47 of the Annual Report 2023. There have been no material changes to the
risk factors described in the Annual Report 2023 since the date of that
report, but risk factors have been retitled and recategorised to align with
Woodside's Risk Appetite Statement.
Key changes to the categorisation include the Health and Safety and
Environment risk factors being split from Operations and Climate Change, to
provide greater visibility of topics most relevant to our business activities
and stakeholders and to reflect where our tolerance for uncertainty is low.
Additionally, Finance and Market has been split into Finance Management and
Commercial and Market to acknowledge a difference in risk appetite. The risks
are summarised below.
Health and safety Our business is subject to risks related to safety or major hazard events in
connection with our activities or facilities which may include unanticipated
or unforeseeable adverse events that impact our ability to respond, manage and
recover from such events.
Environment Risks associated with major hazard events in connection with our activities or
facilities, including potential incidents resulting in significant loss of
hydrocarbon. We work to avoid incidents and prevent harm to the environment,
by integrating environmental management into our activities. We are also
subject to risks associated with progressing biodiversity positive outcomes
and emission reductions in a timely manner, consistent with regulatory and
stakeholder expectations.
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.
Social integrity Risks associated with actual or perceived 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 and as Woodside
expands its global operations.
Strategy and climate change The global response to climate change is changing the way the world produces
and consumes energy. Our strategy requires us to take risk-based decisions and
seek opportunities to continue to deliver energy solutions. 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.
Growth Risks associated with delivery of both major and complex multi-year execution
project activities and transactions (including acquisitions and divestments)
across multiple global locations, including a reliance on third parties for
materials, products, and services.
Production and 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.
Financial management Risks associated with interest rate, commodity price and foreign exchange
fluctuations and inflation.
Commercial and market Risks associated with the ability to capture value whether markets are stable
or volatile.
Technology, innovation and systems 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 2024 half-year
are as follows:
Mr Richard Goyder, AO (Chair) Ms Meg O'Neill (CEO and Managing Director)
Mr Larry Archibald Mr Ashok Belani (appointed 29 January 2024)
Mr Arnaud Breuillac Ms Swee Chen Goh
Mr Ian Macfarlane Ms Angela Minas
Mr Tony O'Neill (appointed 3 June 2024) Ms Ann Pickard
Mr Ben Wyatt
Mr Frank Cooper, AO (retired 24 April 2024) Mr Gene Tilbrook (retired 28 February 2024)
Change of Group Company Secretary
Mr Warren Baillie ceased to be Group Company Secretary on 27 August 2024 and
the Board appointed Mr Damien Gare as Group Company Secretary, effective 27
August 2024.
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
27 August 2024
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 2024, 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 Perth
Partner 27 August 2024
PricewaterhouseCoopers
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, Level 15, 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 2024
HALF-YEAR FINANCIAL STATEMENTS
CONTENTS
CONDENSED CONSOLIDATED (#_Toc173770508) (#_Toc173770508) INCOME STATEMENT
(#_Toc173770508) (#_Toc173770508)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (#_Toc173770509)
(#_Toc173770509)
CONDENSED CONSOLIDATED (#_Toc173770510) (#_Toc173770510) STATEMENT
(#_Toc173770510) (#_Toc173770510) OF (#_Toc173770510) (#_Toc173770510)
FINANCIAL (#_Toc173770510) (#_Toc173770510) POSITION (#_Toc173770510) .
(#_Toc173770510) (#_Toc173770510)
CONDENSED CONSOLIDATED (#_Toc173770511) (#_Toc173770511) STATEMENT
(#_Toc173770511) (#_Toc173770511) OF (#_Toc173770511) (#_Toc173770511) CASH
(#_Toc173770511) (#_Toc173770511) FLOWS (#_Toc173770511) (#_Toc173770511)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (#_Toc173770512)
(#_Toc173770512)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (#_Toc173770513)
(#_Toc173770513)
A. (#_Toc173770514) (#_Toc173770514) Earnings for the period (#_Toc173770514)
(#_Toc173770514)
A.1 Segment revenue and expenses (#_Toc173770515) (#_Toc173770515)
A.2 Finance costs (#_Toc173770516) (#_Toc173770516)
A.3 Dividends paid and proposed (#_Toc173770517) (#_Toc173770517)
A.4 Earnings per share (#_Toc173770518) (#_Toc173770518)
A.5 Taxes (#_Toc173770519) (#_Toc173770519)
B. (#_Toc173770520) (#_Toc173770520) Production and growth assets
(#_Toc173770520) (#_Toc173770520)
B.1 Exploration and evaluation (#_Toc173770521) (#_Toc173770521)
B.2 Oil and gas properties (#_Toc173770522) (#_Toc173770522)
B.3 Goodwill (#_Toc173770523) (#_Toc173770523)
B.4 Disposal of assets (#_Toc173770524) (#_Toc173770524)
C. (#_Toc173770525) (#_Toc173770525) Debt and capital (#_Toc173770525)
(#_Toc173770525)
C.1 Contributed equity (#_Toc173770526) (#_Toc173770526)
C.2 Interest-bearing liabilities and financing facilities (#_Toc173770527)
(#_Toc173770527)
D. (#_Toc173770528) (#_Toc173770528) Other assets and liabilities
(#_Toc173770528) (#_Toc173770528)
D.1 Segment assets and liabilities (#_Toc173770529) (#_Toc173770529)
D.2 Provisions (#_Toc173770530) (#_Toc173770530)
D.3 Other financial assets and liabilities (#_Toc173770531) (#_Toc173770531)
E. (#_Toc173770532) (#_Toc173770532) Other items (#_Toc173770532)
(#_Toc173770532)
E.1 Contingent liabilities and assets (#_Toc173770533) (#_Toc173770533)
E.2 Changes to the composition of the Group (#_Toc173770534) (#_Toc173770534)
E.3 New standards and interpretations (#_Toc173770535) (#_Toc173770535)
E.4 Events after the end of the reporting period (#_Toc173770536)
(#_Toc173770536)
DIRECTORS' DECLARATION (#_Toc173770537) (#_Toc173770537)
INDEPENDENT REVIEW REPORT (#_Toc173770538) (#_Toc173770538)
Significant changes in the current reporting period
The financial performance and position of the Group were particularly affected
by the following events and transactions during the reporting period:
· On 23 February 2024, the Group and JERA Scarborough Pty Ltd (JERA)
entered into a sale and purchase agreement for JERA to acquire a 15.1%
non-operating participating interest in the Scarborough Joint Venture. The
transaction is expected to complete in the second half of 2024. As a result,
$1,378 million of assets have been reclassified as assets held for sale and
$119 million of liabilities have been reclassified as liabilities directly
associated with assets held for sale (refer to Note B.4). This has also
resulted in the recognition of a net tax benefit of $91 million (refer to Note
A.5).
· On 26 March 2024, the Group completed the sell-down of a 10%
non-operating participating interest in the Scarborough Joint Venture to LNG
Japan. Proceeds from the sale were $910 million, including capital
reimbursements and escalation. As a result, the Group recognised a pre-tax
gain of $121 million on the transaction (refer to Note B.4).
· In June 2024, the Sangomar project in Senegal achieved first oil.
During the half-year ended 30 June 2024, Sangomar produced 0.54 MMboe of crude
oil. Production will continue to ramp up in 2024. The Group also recognised a
net deferred tax asset of $305 million (refer to Note A.5).
CONDENSED CONSOLIDATED INCOME STATEMENT
for the half-year ended 30 June 2024
2024 2023
Notes US$m US$m
Operating revenue A.1 5,988 7,400
Cost of sales A.1 (3,272) (3,872)
Gross profit 2,716 3,528
Other income A.1 315 134
Other expenses A.1 (669) (803)
Impairment losses A.1 - (68)
Profit before tax and net finance costs 2,362 2,791
Finance income 95 174
Finance costs A.2 (147) (137)
Profit before tax 2,310 2,828
Petroleum resource rent tax (PRRT) expense (192) (778)
Income tax expense A.5 (146) (284)
Profit after tax 1,972 1,766
Profit attributable to:
Equity holders of the parent 1,937 1,740
Non-controlling interest 35 26
Profit for the period 1,972 1,766
Basic earnings per share attributable to equity holders of the parent A.4 102.2 91.7
(US cents)
Diluted earnings per share attributable to equity holders of the parent A.4 101.4 91.1
(US cents)
The accompanying notes form part of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the half-year ended 30 June 2024
2024 2023
US$m US$m
Profit for the period 1,972 1,766
Other comprehensive income
Items that may be reclassified to the income statement in subsequent periods:
(Losses)/gains on cash flow hedges (165) 413
Losses on cash flow hedges reclassified to the income statement 38 241
Tax recognised within other comprehensive income 19 (76)
Exchange fluctuations on translation of foreign operations taken to equity - 1
Items that will not be reclassified to the income statement in subsequent
periods:
Remeasurement loss on defined benefit plan (15) -
Net loss on financial instruments at fair value through other comprehensive (11) (23)
income
Other comprehensive (loss)/income for the period, net of tax (134) 556
Total comprehensive income for the period 1,838 2,322
Total comprehensive income attributable to:
Equity holders of the parent 1,803 2,296
Non-controlling interest 35 26
Total comprehensive income for the period 1,838 2,322
The accompanying notes form part of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2024
30 June 31 December
2024 2023
Notes US$m US$m
Current assets
Cash and cash equivalents 1,979 1,740
Receivables 1,459 1,517
Inventories 719 616
Other financial assets D.3 154 209
Assets held for sale B.4 1,378 826
Tax receivable 306 118
Other assets 57 92
Total current assets 6,052 5,118
Non-current assets
Receivables 790 839
Inventories 183 120
Other financial assets D.3 106 120
Exploration and evaluation assets B.1 714 668
Oil and gas properties B.2 40,125 40,791
Deferred tax assets 1,969 1,717
Lease assets 1,187 1,230
Investments accounted for using the equity method 248 249
Goodwill B.3 3,697 3,995
Other assets 571 514
Total non-current assets 49,590 50,243
Total assets 55,642 55,361
Current liabilities
Payables 1,597 1,724
Interest-bearing liabilities 992 -
Other financial liabilities D.3 152 67
Liabilities directly associated with assets held for sale B.4 119 94
Provisions D.2 1,223 1,506
Tax payable 416 1,108
Lease liabilities 217 298
Other liabilities 165 185
Total current liabilities 4,881 4,982
Non-current liabilities
Interest-bearing liabilities 4,830 4,883
Deferred tax liabilities 1,312 1,627
Other financial liabilities D.3 203 42
Provisions D.2 6,454 6,451
Tax payable 39 40
Lease liabilities 1,328 1,317
Other liabilities 766 849
Total non-current liabilities 14,932 15,209
Total liabilities 19,813 20,191
Net assets 35,829 35,170
Equity
Issued and fully paid shares C.1 29,001 29,001
Shares reserved for employee share plans C.1 (65) (49)
Other reserves 4,726 5,261
Retained earnings 1,408 186
Equity attributable to equity holders of the parent 35,070 34,399
Non-controlling interest 759 771
Total equity 35,829 35,170
The accompanying notes form part of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the half-year ended 30 June 2024
2024 2023
Notes US$m US$m
Cash flows from operating activities
Profit after tax for the period 1,972 1,766
Adjustments for:
Non-cash items
Depreciation and amortisation 1,908 1,948
Depreciation of lease assets 101 81
Change in fair value of derivative financial instruments 205 269
Net finance costs/(income) 52 (37)
Tax expense 338 1,062
Exploration and evaluation written off - 1
Impairment losses - 68
Restoration movement 15 20
Gain on disposal of oil and gas properties (143) -
Other (66) (180)
Changes in assets and liabilities
Decrease in trade and other receivables 113 488
Increase in inventories (166) (72)
Decrease in provisions (31) (110)
Decrease in lease liabilities - (8)
Decrease/(increase) in other assets and liabilities 39 (234)
Increase/(decrease) in trade and other payables 6 (220)
Cash generated from operations 4,343 4,842
Interest received 77 174
Dividends received - 6
Borrowing costs relating to operating activities (2) (8)
Income tax and PRRT paid (1,700) (2,233)
Payments for restoration (325) (162)
Receipts from hedge collateral - 332
Net cash from operating activities(1) 2,393 2,951
Cash flows used in investing activities
Payments for capital and exploration expenditure (2,418) (2,457)
Borrowing costs relating to investing activities (155) (181)
Proceeds from disposal of non-current assets 920 3
Funding of equity accounted investments - (2)
Net cash used in investing activities (1,653) (2,637)
Cash flows used in financing activities
Proceeds from borrowings C.2 950 -
Repayment of borrowings C.2 - (41)
Purchases of shares relating to employee share plans(1) (25) (20)
Repayment of the principal portion of lease liabilities (213) (168)
Borrowing costs relating to lease liabilities (21) (3)
Contributions to non-controlling interests (48) (51)
Dividends paid (1,139) (2,738)
Net cash used in financing activities(1) (496) (3,021)
Net increase/(decrease) in cash held 244 (2,707)
Cash and cash equivalents at the beginning of the period 1,740 6,201
Effects of exchange rate changes (5) (25)
Cash and cash equivalents at the end of the period 1,979 3,469
1. Purchases of shares relating to employee share plans, which were
previously classified within cash flows used in operating activities, has been
classified within cash flows used in financing activities for the half-year
ended 2024. The 2023 comparatives have been reclassified to be presented on
the same basis.
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 2024
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 2024 29,001 (49) 290 795 88 4,118 (30) 186 34,399 771 35,170
Profit for the period - - - - - - - 1,937 1,937 35 1,972
Other comprehensive loss - - - - (108) - (11) (15) (134) - (134)
Total comprehensive (loss)/income for the period - - - - (108) - (11) 1,922 1,803 35 1,838
Transfers - - - - - 700 - (700) - - -
Employee share plan purchases - (25) - - - - - - (25) - (25)
Employee share plan redemptions - 9 (9) - - - - - - - -
Share-based payments (net of tax) - - 32 - - - - - 32 - 32
Dividends paid - - - - - (1,139) - - (1,139) (47) (1,186)
At 30 June 2024 29,001 (65) 313 795 (20) 3,679 (41) 1,408 35,070 759 35,829
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
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 2024
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 Australia Operations, International Operations, Marketing and Trading,
Projects, Decommissioning, 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 27 August 2024.
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 2023 (2023 Financial Statements) and any
public announcements made by Woodside during the period ended 30 June 2024 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 2023 Financial Statements. Adoption of new or amended standards
and interpretations effective 1 January 2024 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 2023 Financial Statements. Estimates have been revised, where
required, to reflect current market conditions including the impact of climate
change. Updated estimates used for the sell-down of the Scarborough Joint
Venture and embedded commodity derivatives are disclosed in Notes B.4 and D.3
respectively; these assumptions could change in the future.
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 2024
Basis of preparation
The condensed consolidated half-year financial statements have been prepared
on an 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 2024. 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 material 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 2023 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 2024
A. Earnings for the period
A.1 Segment revenue and expenses
Australia International Marketing Corporate/Other Consolidated
2024 2023 2024 2023 2024 US$m 2023 US$m 2024 2023 2024 2023
US$m US$m US$m US$m US$m US$m US$m US$m
Liquified natural gas 2,595 3,894 - - 412 785 - - 3,007 4,679
Pipeline gas 512 515 107 198 - - - - 619 713
Crude oil and condensate 861 715 1,190 1,028 40 15 - - 2,091 1,758
Natural gas liquids 87 120 24 16 40 23 - - 151 159
Revenue from sale of hydrocarbons 4,055 5,244 1,321 1,242 492 823 - - 5,868 7,309
Intersegment revenue(1) (12) (120) (2) (6) 14 126 - - - -
Processing and services revenue 113 85 - - - - - - 113 85
Shipping and other revenue - - - - 7 6 - - 7 6
Other revenue 101 (35) (2) (6) 21 132 - - 120 91
Operating revenue(2) 4,156 5,209 1,319 1,236 513 955 - - 5,988 7,400
Production costs (511) (614) (234) (193) - - - - (745) (807)
Royalties, excise and levies (185) (285) (11) (31) - - - - (196) (316)
Insurance (13) (20) (2) (5) - - (11) (9) (26) (34)
Inventory movement 15 31 47 2 - - - - 62 33
Costs of production (694) (888) (200) (227) - - (11) (9) (905) (1,124)
Land and buildings (26) (31) - (2) - - (2) - (28) (33)
Transferred exploration and evaluation (41) (51) (45) (2) - - - - (86) (53)
Plant and equipment (1,189) (1,298) (567) (543) - - (23) (17) (1,779) (1,858)
Oil and gas properties depreciation and amortisation (1,256) (1,380) (612) (547) - - (25) (17) (1,893) (1,944)
Shipping and direct sales costs (61) (107) (43) (38) (50) (30) - - (154) (175)
Trading costs - (4) - - (273) (618) - - (273) (622)
Other hydrocarbon costs (26) (7) - - - - - - (26) (7)
Other cost of sales (17) - - - - - (4) - (21) -
Other cost of sales (104) (118) (43) (38) (323) (648) (4) - (474) (804)
Cost of sales (2,054) (2,386) (855) (812) (323) (648) (40) (26) (3,272) (3,872)
Gross profit/(loss) 2,102 2,823 464 424 190 307 (40) (26) 2,716 3,528
Other income(3) 242 106 20 - 20 1 33 27 315 134
Exploration and evaluation expenditure (12) (9) (86) (123) - - - (1) (98) (133)
Amortisation of permit acquisitions - - (5) (4) - - - - (5) (4)
Write-offs - - - (1) - - - - - (1)
Exploration and evaluation (12) (9) (91) (128) - - - (1) (103) (138)
General, administration and - - - (3) - (10) (214) (224) (214) (237)
other costs
Amortisation of intangible assets - - - - - - (10) - (10) -
Depreciation of lease assets (28) (22) (1) (7) (50) (34) (22) (18) (101) (81)
Restoration movement (14) (8) (1) (12) - - - - (15) (20)
Other(4) 16 (27) - (1) 58 (99) (300) (200) (226) (327)
Other costs (26) (57) (2) (23) 8 (143) (546) (442) (566) (665)
Other expenses (38) (66) (93) (151) 8 (143) (546) (443) (669) (803)
Impairment losses - (68) - - - - - - - (68)
Profit/(loss) before tax and net finance costs 2,306 2,795 391 273 218 165 (553) (442) 2,362 2,791
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 $5,981 million (2023: $7,394 million) and sub-lease income
of $7 million (2023: $6 million) disclosed within shipping and other revenue.
3. Includes fees, recoveries and other income not
associated with the ongoing operations of the business. The 2024 amount
includes the gain on the Scarborough sell-down to LNG Japan of $121 million.
4. Includes gains and losses on foreign exchange and
hedging activities, fair value losses on embedded derivatives and other items
not associated with the ongoing operations of the business.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
A.2 Finance costs
2024 2023
US$m US$m
Interest on interest-bearing liabilities 125 112
Interest on lease liabilities 51 54
Accretion charge 145 134
Other finance costs 13 21
Less: Finance costs capitalised against qualifying assets (187) (184)
147 137
A.3 Dividends paid and proposed
Woodside Energy Group Ltd, the parent entity, paid and proposed dividends as
set out below:
2024 2023
US$m US$m
(a) Dividends paid during the financial period 1,139 2,734
Prior year fully franked final dividend US$0.60, paid on 4 April 2024
(2023: US$1.44, paid on 5 April 2023)
(b) Dividend declared subsequent to the reporting period 1,310 1,519
(not recorded as a liability)
Current year fully franked interim dividend US$0.69 to be paid on
3 October 2024 (2023: US$0.80, paid on 28 September 2023)
A.4 Earnings per share
2024 2023
Profit attributable to equity holders of the parent (US$m) 1,937 1,740
Weighted average number of shares on issue for basic earnings per share 1,896,041,815 1,896,624,636
Effect of dilution from contingently issuable shares 14,691,983 12,981,487
Weighted average number of shares on issue adjusted for the effect of dilution 1,910,733,798 1,909,606,123
Basic earnings per share (US cents) 102.2 91.7
Diluted earnings per share (US cents) 101.4 91.1
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.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
A.5 Taxes
2024 2023
US$m US$m
Reconciliation of income tax expense
Profit before tax 2,310 2,828
PRRT expense (192) (778)
Profit before income tax 2,118 2,050
Income tax expense calculated at 30% 635 615
Effect of tax rate differentials (15) 30
Effect of deferred tax assets not recognised 35 67
Effect of tax benefits previously unrecognised(1) (366) (340)
Reduction in deferred tax liability due to held for sale basis(1) (91) -
Foreign exchange impact on tax benefit (11) (83)
Adjustment to prior years (52) (16)
Other 11 11
Income tax expense 146 284
1. Subsequent to achieving first oil on the Sangomar project in June 2024,
the Group has recognised a net deferred tax asset of $305 million. The
remaining $61 million relates to other tax benefits previously unrecognised.
The expected sale of Woodside's 15.1% share in the Scarborough Joint Venture
resulted in the recognition of a net tax benefit of $91 million. These events
have resulted in a reduction of the global effective income tax rate from
25.6% to 6.9%. In the prior period, as a result of the final investment
decision to develop the Trion resource, the Group recognised deferred tax
assets of $319 million, resulting in a reduction of the global effective
income tax rate from 29.6% to 13.9%.
In May 2024, the Parliament of Australia enacted the Treasury Laws Amendment
(Tax Accountability and Fairness) Act 2024 for the PRRT deductions cap which
takes effect from 1 July 2023. If an entity is an LNG producer and its
petroleum projects meet the criteria of the deduction cap, the entity will
have a taxable profit of 10% of the projects' assessable receipts in the year
of tax.
The new legislation has impacted the Pluto and Wheatstone projects resulting
in the Group recognising a $124 million current tax payable as at 30 June
2024.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
B. Production and growth assets
B.1 Exploration and evaluation
Asia Pacific Americas Africa Total
US$m US$m US$m US$m
Half-year ended 30 June 2024
Carrying amount at 1 January 2024 568 76 24 668
Additions 11 52 14 77
Amortisation of licence acquisition costs - (5) - (5)
Transferred exploration and evaluation (8) - (18) (26)
Carrying amount at 30 June 2024 571 123 20 714
Year ended 31 December 2023
Carrying amount at 1 January 2023 529 240 38 807
Additions 79 161 6 246
Amortisation of licence acquisition costs - (2) (2) (4)
Expensed (31) (28) (18) (77)
Transferred exploration and evaluation(1) (9) (295) - (304)
Carrying amount at 31 December 2023 568 76 24 668
1. On 20 June 2023, the Group made a final investment decision to develop
the Trion resource in Mexico. Related exploration and evaluation assets of
$274 million were transferred to oil and gas properties.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
B.2 Oil and gas properties
Land and buildings Transferred exploration and evaluation Plant and equipment Projects in Total
US$m US$m US$m development(1) US$m US$m
Half-year ended 30 June 2024
Carrying amount at 1 January 2024 701 777 23,589 15,724 40,791
Additions(2) - - (127) 2,447 2,320
Disposals at written down value (2) - - (47) (49)
Depreciation and amortisation (28) (86) (1,779) - (1,893)
Completions and transfers(3) - 341 5,391 (5,706) 26
Transfer to assets held for sale(4) - - (4) (1,066) (1,070)
Carrying amount at 30 June 2024 671 1,032 27,070 11,352 40,125
At 30 June 2024
Historical cost 1,743 2,320 55,533 12,072 71,668
Accumulated depreciation and impairment (1,072) (1,288) (28,463) (720) (31,543)
Net carrying amount 671 1,032 27,070 11,352 40,125
Year ended 31 December 2023
Carrying amount at 1 January 2023 840 481 23,057 15,541 39,919
Additions - - 836 5,759 6,595
Disposals at written down value (8) - (2) - (10)
Depreciation and amortisation (67) (125) (3,764) - (3,956)
Impairment losses (64) (20) (1,028) (328) (1,440)
Completions and transfers - 441 4,496 (4,633) 304
Transfer to assets held for sale - - (6) (615) (621)
Carrying amount at 31 December 2023 701 777 23,589 15,724 40,791
At 31 December 2023
Historical cost 1,745 1,979 50,272 16,443 70,439
Accumulated depreciation and impairment (1,044) (1,202) (26,683) (719) (29,648)
Net carrying amount 701 777 23,589 15,724 40,791
1. Projects in development include the fair value ascribed to future
phases of certain projects acquired through business combinations.
2. Includes $2,212 million of capital additions and $187 million of
capitalised borrowing costs offset by $79 million relating to changes in
restoration provision assumptions. The $127 million of additions reducing
plant and equipment relates to changes in restoration provision assumptions.
3. Upon first oil in June 2024, the carrying value of the Sangomar
project in projects in development has been transferred to plant and
equipment.
4. Refer to Note B.4 for details of the sell-downs of the Scarborough
Joint Venture.
The Group has capital expenditure commitments contracted for, but not provided
for in the financial statements, of
$3,017 million (31 December 2023: $4,245 million).
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
B.3 Goodwill
US$m
Half-year ended 30 June 2024
Carrying amount at 1 January 2024 3,995
Transfer to assets held for sale(1) (298)
Carrying amount at 30 June 2024 3,697
At 30 June 2024
Cost 4,174
Accumulated impairment (477)
Net carrying amount 3,697
Year ended 31 December 2023
Carrying amount at 1 January 2023 4,614
Adjustment to purchase price allocation 55
Impairment (477)
Transfer to assets held for sale (197)
Carrying amount at 31 December 2023 3,995
At 31 December 2023
Cost 4,472
Accumulated impairment (477)
Net carrying amount 3,995
1. Refer to Note B.4(a) for details of the sell-downs of the Scarborough Joint
Venture.
B.4 Disposal of assets
(a) Sell-down of Scarborough Joint Venture to JERA
On 23 February 2024, the Group entered into a sale and purchase agreement with
JERA for the sale of a 15.1% non-operating participating interest in the
Scarborough Joint Venture.
As at 30 June 2024, the Group has reclassified $1,378 million of assets, being
the carrying value of the 15.1% interest in the Scarborough Joint Venture
within the Australia segment, to assets held for sale. Liabilities of $119
million have been reclassified to liabilities directly associated with assets
held for sale. No impairment of assets occurred on reclassification to held
for sale.
The following assets and liabilities were reclassified as held for sale as at
30 June 2024:
US$m
Assets classified as held for sale
Oil and gas properties 1,070
Inventories 6
Lease assets 2
Goodwill 298
Other assets 2
Total assets held for sale 1,378
Liabilities directly associated with assets held for sale
Payables (28)
Deferred tax liabilities (75)
Lease liabilities (8)
Provisions (8)
Total liabilities directly associated with assets held for sale (119)
The purchase price is $740 million, subject to adjustments which includes the
reimbursement to Woodside for JERA's share of expenditure for the Scarborough
project from the effective date of 1 January 2022. The total proceeds from the
sale are expected to exceed the net carrying value of the assets and
liabilities classified as held for sale. The transaction is expected to
complete in the second half of 2024. Completion of the transaction is subject
to conditions precedent including Western Australia Government approval.
This has also resulted in the recognition of a net tax benefit of $91 million.
After completion, the Group's participating interest in the Scarborough Joint
Venture will reduce from 90% to 74.9%.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
B.4 Disposal of assets (continued)
(a) Sell-down of Scarborough Joint Venture to JERA (continued)
Key estimates and judgements
Goodwill allocation on Scarborough sell-down
In accordance with AASB 136/IAS 36 Impairment of assets, if goodwill has been
allocated to a CGU and the entity disposes of an operation within that unit,
the goodwill associated with the operation disposed shall be included in the
carrying value of the operation when determining the gain or loss on disposal
and measured on the basis of the relative values of the operation disposed of
and the portion of the CGU retained.
The Pluto-Scarborough CGU includes goodwill allocated from the merger with BHP
Petroleum in 2022. Judgement is required to determine the amount of goodwill
allocated to the 15.1% participating interest in the Scarborough assets being
disposed.
The Group used fair value measurements of Pluto and Scarborough assets within
the CGU as the basis to allocate goodwill between the Pluto and Scarborough
assets. The goodwill associated with the participating interest of the
Scarborough assets being disposed of was determined based on the percentage
participating interest disposed of in proportion to the participating interest
being retained.
(b) Sell-down of Scarborough Joint Venture to LNG Japan
On 8 August 2023 the Group 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.
As at 31 December 2023, the Group reclassified $823 million of assets, being
the carrying value of the 10% interest in the Scarborough Joint Venture, to
assets held for sale. Liabilities of $94 million were reclassified to
liabilities directly associated with assets held for sale.
The transaction completed on 26 March 2024, reducing the Group's participating
interest from 100% to 90%. Proceeds from the sale were $910 million, including
capital reimbursements and escalation. Delays to the first cargo or cost
overruns in specific circumstances may result in payments by Woodside to LNG
Japan of up to a maximum of $50 million. For the half-year ended 30 June 2024,
the Group recognised a pre-tax gain on sale of $121 million.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
C. Debt and capital
C.1 Contributed equity
Issued and fully paid shares
Number of shares US$m
Half-year ended 30 June 2024
Opening balance 1,898,749,771 29,001
Amounts as at 30 June 2024 1,898,749,771 29,001
Year ended 31 December 2023
Opening balance 1,898,749,771 29,001
Amounts as at 31 December 2023 1,898,749,771 29,001
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
Reserved shares are the Group's own equity instruments, which are used in
employee share-based payment arrangements or the Dividend Reinvestment Plan
(DRP). The DRP was suspended on 27 February 2023. These shares are deducted
from equity.
Number of shares US$m
Half-year ended 30 June 2024
Opening balance 2,140,927 (49)
Purchases during the period 1,262,082 (25)
Vested/allocated during the period (424,959) 9
Amounts as at 30 June 2024 2,978,050 (65)
Year ended 31 December 2023
Opening balance 1,873,777 (38)
Purchases during the year 2,332,121 (57)
Vested/allocated during the year (2,064,971) 46
Amounts as at 31 December 2023 2,140,927 (49)
C.2 Interest-bearing liabilities and financing facilities
During the period, the Group completed the drawdown of $500 million from
bilateral loan facilities. In addition, the Group entered into the following
facilities during the period:
· $1,000 million loan facility with Japan Bank for International
Cooperation (JBIC) with a term of 10 years. Interest is based on daily Secured
Overnight Financing Rate (SOFR) plus margin. This facility was fully drawn
subsequent to the period on 22 July 2024.
· $450 million syndicated term loan facility with a tenor of 10
years. Interest is based on daily SOFR plus credit adjustment spread (CAS) and
margin. This facility was fully drawn in June 2024.
There were no other material changes to interest-bearing liabilities and
financing facilities. As at 30 June 2024, the Group had $6,500 million (31
December 2023: $6,050 million) of available undrawn facilities. Subsequent to
30 June 2024, the Group cancelled $1,550 million of undrawn facilities.
For the year ended 31 December 2023, the Group repaid $201 million of the CHF
Medium Term Note and $83 million of the JBIC facility which was settled in
July 2023.
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 $4,087 million (31
December 2023: $4,087 million) and a fair value of $3,958 million (31 December
2023: $3,936 million). The medium-term notes have a carrying amount of $200
million (31 December 2023: $200 million) and a fair value of $188 million (31
December 2023: $188 million). Fair value is calculated based on the present
value of future principal and interest cash flows, discounted at the market
rate of interest at the reporting date and classified as Level 1 on the fair
value hierarchy.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
D. Other assets and liabilities
D.1 Segment assets and liabilities
30 June 31 December
2024 2023
US$m US$m
(a) Segment assets
Australia 30,895 31,602
International 18,083 17,923
Marketing 798 835
Corporate/Other 5,866 5,001
55,642 55,361
30 June 31 December
2024 2023
US$m US$m
(b) Segment liabilities
Australia 7,312 7,833
International 2,434 2,624
Marketing 890 751
Corporate/Other 9,177 8,983
19,813 20,191
Corporate/Other assets mainly comprise cash and cash equivalents, lease assets
and deferred tax assets. Corporate/Other liabilities mainly comprise
interest-bearing liabilities, lease liabilities and deferred tax liabilities.
D.2 Provisions
Restoration(1) Employee benefits Other Total
US$m US$m US$m US$m
Half-year ended 30 June 2024
At 1 January 2024 7,154 522 281 7,957
Change in provision (449) (31) 55 (425)
Unwinding of present value discount 144 - 1 145
Carrying amount at 30 June 2024 6,849 491 337 7,677
Current 698 302 223 1,223
Non-current 6,151 189 114 6,454
Net carrying amount 6,849 491 337 7,677
Year ended 31 December 2023
At 1 January 2023 6,253 517 409 7,179
Change in provision 664 5 (128) 541
Unwinding of present value discount 237 - - 237
Carrying amount at 31 December 2023 7,154 522 281 7,957
Current 1,011 351 144 1,506
Non-current 6,143 171 137 6,451
Net carrying amount 7,154 522 281 7,957
1. 2024 change in provision is due to a revision of discount rates of
$147 million (primarily due to an increase in risk-free rates), changes in
foreign exchange rates of $84 million and provisions used of $358 million,
offset by changes in estimates of $140 million.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
D.3 Other financial assets and liabilities
30 June 31 December
2024 2023
US$m US$m
Other financial assets
Financial instruments at fair value through profit and loss
Derivative financial instruments designated as hedges 160 248
Other financial assets 100 53
Financial instruments at fair value through other comprehensive income
Other financial assets - 28
Total other financial assets 260 329
Current 154 209
Non-current 106 120
Net carrying amount 260 329
Other financial liabilities
Financial instruments at fair value through profit and loss
Derivative financial instruments designated as hedges 126 74
Embedded derivative 188 35
Other financial liabilities 41 -
Total other financial liabilities 355 109
Current 152 67
Non-current 203 42
Net carrying amount 355 109
Hedging activities
During the period, the following hedging activities were undertaken:
· The Group had hedged approximately 29.3 MMboe of 2024 oil
production at an average price of approximately $75.6 per barrel, of which
approximately 49% was delivered as at 30 June 2024.
· The Group additionally hedged approximately 15 MMboe of 2025 oil
production at an average price of approximately $81.2 per barrel.
· The Group also has a hedging program for Corpus Christi LNG
volumes designed to protect against downside pricing risk. These hedges are
Henry Hub (HH) and Title Transfer Facility (TTF) commodity swaps.
Approximately 70% of volumes for the remainder of 2024, 48% of 2025 and 9% of
2026 volumes have been hedged.
· Through foreign exchange forward contracts, the Group hedged the
Australian dollar to US dollar exchange rate for a portion of the Australian
dollar denominated capital expenditure expected to be incurred for the
Scarborough development.
The following table presents the Group's derivative financial instruments
designated as hedges, measured and recognised at fair value:
30 June 31 December
2024 2023
US$m US$m
Oil swaps (cash flow hedges) (53) (14)
HH Corpus Christi commodity swaps (cash flow hedges) (24) (44)
TTF Corpus Christi commodity swaps (cash flow hedges) 72 181
Interest rate swaps (cash flow hedges) 48 43
Foreign exchange forwards (cash flow hedges) (9) 8
Total derivative financial instruments asset designated as hedges 34 174
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
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, where a component of the selling price is
linked to the price of urea. The contract was 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 2024 amounted to a net liability of $188 million (31 December 2023:
net liability of $35 million). The derivative is remeasured to fair value at
each reporting date in accordance with the urea price at that date. For the
six-month period ended 30 June 2024, an unrealised loss of $153 million (30
June 2023: unrealised loss of $52 million) has been recognised through other
expenses.
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.
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 2023 Financial Statements. There have
been no significant changes in risk management policies since 31 December
2023. Refer to the embedded commodity derivative key estimates and judgements
section for the sensitivity assessment on discount rates and pricing.
Key estimates and judgements
Embedded commodity derivative
The fair value of the Perdaman embedded derivative has been estimated using a
Monte Carlo simulation model. The assessment requires management to make
certain assumptions about the model inputs, including forecast cash flows,
discount rate, credit risk and volatility. These assumptions require
significant management judgement and are subject to risk and uncertainty, and
hence changes in economic conditions can affect the assumptions. The present
value of the embedded derivative was estimated using the assumptions set out
below.
· Inflation rate - 2.5%.
· Discount rate - a pre-tax interest rate curve (range: 5.8% to
6.95%).
· Domestic gas pricing - forecast sales are subject to urea
pricing. Price assumptions are based on the best market information available
at measurement date and derived from short- and long-term views of global
supply and demand, building upon past experience of the industry and
consistent with external sources. The long-term urea price is determined with
reference to the prevailing gas hub (TTF) prices available in the market at
reporting date.
The embedded derivative is most sensitive to changes in discount rates and
pricing, which may result in unrealised gains or losses recognised in other
income/expenses. The nominal impact of the effects of changes to discount rate
and long-term price assumptions are estimated as follows:
Change in assumption(1) US$m
Urea sales price: increase of 10% 137
Urea sales price: decrease of 10% (137)
Discount rate: increase of 1.5%(2) (186)
Discount rate: decrease of 1.5%(2) 230
1. Amounts shown represent the change of the present value of the
contract keeping all other variables constant.
2. A change of 1.5% represents 150 basis points.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
E. Other items
E.1 Contingent liabilities and assets
30 June 31 December
2024 2023
US$m US$m
Contingent liabilities at reporting date
Not otherwise provided for in the financial statements:
Contingent liabilities 226 260
Guarantees 3 2
229 262
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 financial statements. The Group operates in complex tax and
legislative regimes. The amounts disclosed above include estimates made in
relation to ongoing disputes with various tax and government authorities.
Assessing a value of contingent liabilities requires a high degree of
judgement. The contingent liabilities relating to tax matters are estimated
based on notices received from authorities before interest and penalties. The
possibility of further claims related to the same matters cannot be ruled out
and the judicial processes may take extended periods to conclude.
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 $56 million as at 30 June 2024 (31 December
2023: $47 million).
E.2 Changes to the composition of the Group
Since the last annual reporting, Koolbardi Pte Ltd, a wholly owned subsidiary,
was incorporated in Singapore on 21 February 2024.
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
2024 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 AASB 18/ IFRS 18
Presentation and Disclosure in Financial Statements and the amendments to AASB
112/ IAS 12 Income Taxes where the impact is under assessment.
Pillar Two tax reform
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.
For the half-year ended 30 June 2024, the Group paid $1,700 million of income
tax and PRRT.
The Group's impact assessment will depend on the extent to which the Pillar
Two legislation has been enacted in the various jurisdictions the Group
operates in and when it comes into effect. As at reporting date, Australia has
not enacted the Pillar Two legislation. The Group will continue to monitor and
assess the expected impact of the Pillar Two reform.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for the half-year ended 30 June 2024
E.4 Events after the end of the reporting period
Acquisition of Tellurian Inc
On 22 July 2024, the Group entered into a definitive agreement to acquire all
the issued and outstanding common stock of Tellurian Inc (Tellurian) for a
cash payment of approximately $900 million (the transaction). As part of the
agreement, the Group has provided a loan facility of up to $230 million to
Tellurian to ensure site activity maintains momentum prior to the completion
of the transaction. The loan is secured by a first priority lien over the
Tellurian assets, subject to customary exclusions. The latest maturity date of
the loan is 15 December 2024 or the date of transaction completion.
The transaction is subject to Tellurian shareholder approval, satisfaction of
customary conditions precedent, and is expected to complete in the fourth
quarter of 2024. The financial effect of the transaction is still being
assessed.
Acquisition of OCI Clean Ammonia Holding B.V.
On 5 August 2024, Woodside entered into a binding agreement to acquire 100% of
OCI Clean Ammonia Holding B.V. (OCI) and its Clean Ammonia Project for an
all-cash consideration of approximately $2.35 billion. The project is under
construction and is subject to cost, schedule, and performance guarantees from
OCI.
The transaction is subject to OCI shareholder approval, satisfaction of
customary conditions precedent, and is expected to complete in the second half
of 2024. The financial effect of the transaction is still being assessed.
DIRECTORS' DECLARATION
For the half-year ended 30 June 2024
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 2024 and of its performance for the half-year ended on that date;
and
ii. complying with Australian 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 International
Accounting Standard IAS 34 Interim Financial Reporting, 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
27 August 2024 27 August 2024
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 2024, the condensed consolidated income statement,
condensed consolidated statement of comprehensive income, condensed
consolidated statement of cash flows and condensed consolidated statement of
changes in equity for the half-year ended on that date, selected 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:
1. The Corporations Act 2001 including:
a. giving a true and fair view of the Group's financial position
as at 30 June 2024 and of its performance for the half-year ended on that date
b. complying with Australian Accounting Standard AASB 134 Interim
Financial Reporting, and the Corporations Regulations 2001.
2. International Accounting Standard IAS 34 Interim Financial
Reporting as issued by the International Accounting Standards Board (IASB).
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) and ISRE
2410 Review of Interim Financial Information Performed by the Independent
Auditor of the Entity (ISRE 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) and the International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by the International
Ethics Standards Board for Accountants (IESBA 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 and the IESBA Code.
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, Level 15, 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.
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, the Corporations Act 2001 and International
Financial Reporting Standards. The directors are also responsible for such
internal control as they 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.
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 2024 and of its performance for the
half-year ended on that date, and complying with Australian Accounting
Standard AASB 134 Interim Financial Reporting and the Corporations Regulations
2001.
ISRE 2410 requires us to conclude whether anything has come to our attention
that causes us to believe that the half-year financial statements, taken as a
whole, are not prepared in all material respects in accordance with
International Accounting Standard IAS 34 Interim Financial Reporting.
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 International Standards on Auditing 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
27 August 2024 27 August 2024
Appendix 4D
Dividends
Ex-dividend date 5 September 2024
Record date for the interim dividend 6 September 2024
Date the dividend is payable 3 October 2024
Current period Previous corresponding period 29 (#_ftn29)
Interim dividend - fully franked US cents per share 69 80
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 9 September 2024.
Net Tangible Assets per ordinary security
Current period Previous corresponding period(29)
US$ US$
Net Tangible Assets (US$ per ordinary security) 30 (#_ftn30) 16.42 16.40
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(29)
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 16.17% 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 2024
January Fourth quarter 2023 report
Appointment of Director and changes to Committee Membership
February Woodside concludes discussions with Santos
Woodside releases Reserves Statement and financial updates
Woodside to sell 15.1% Scarborough interest to JERA
Full-year 2023 results and briefing
Annual Report 2023 and US Annual Report 2023 (Form 20-F)
Climate Transition Action Plan and 2023 Progress Report
March Thriving through the energy transition investor presentation
Woodside completes sale of 10% Scarborough interest
April Chair's letter to shareholders
First quarter 2024 report
2024 Annual General Meeting
June Appointment of Director to Woodside Board
Woodside achieves first oil at Sangomar field in Senegal
Report on payments to governments 2023
July Woodside to acquire Tellurian and Driftwood LNG
Second quarter 2024 report
August Woodside to acquire OCI's Clean Ammonia Project
Half-Year 2024 line-item guidance
Half-Year 2024 results
Events calendar 2024-2025
Key calendar dates for Woodside shareholders in 2024-25. Please note dates are
subject to review.
August 27 Half-year 2024 results
September 5 Ex-dividend date for interim dividend (Australian Securities Exchange and
London Stock Exchange)
6 Ex-dividend date for interim dividend (New York Stock Exchange)
6 Record date for interim dividend
16 US investor event
October 3 Payment date for interim dividend
16 Third quarter 2024 report
December 31 Year-end 2024
January Fourth quarter 2024 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 China National Offshore Oil Corporation. Woodside's
participating interest in the China LNG JV is 25% and in the Extended Interest
JVs is 31.567%.
International
Asset Role Equity Product
Sangomar Operator 82% Crude oil
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(1)
Post FID
Asset Role Equity Product
Scarborough Operator 90%(2) LNG, pipeline gas and condensate
Trion Operator 60% Crude oil
1. Excludes acquisitions subsequent to the period.
2. On completion of the transaction to sell a 15.1% interest in the
Scarborough Joint Venture to JERA, Woodside will hold a 74.9% interest and
remain as operator. Completion is expected in the second half of 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 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(1,2)
Asset Role Equity Product
H2OK Operator 100% Hydrogen
H2Perth Operator 100% Hydrogen
Hydrogen Refueller@H2Perth Operator 100% Hydrogen
H2TAS Operator 100% Hydrogen and ammonia
Woodside Solar Proponent(2) 100% Solar energy
Southern Green Hydrogen(3) Preferred partner - Hydrogen and ammonia
Capella Non-operating participant N/A Solar energy
1. Subject to FID and regulatory approvals. Excludes acquisitions
subsequent to the period.
2. Solar generation, battery services and transmission access and
services will be supplied to Woodside under contracts with third parties.
3. Subsequent to the period, Woodside ceased discussions on a potential
Southern Green Hydrogen collaboration.
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 Angel 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-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
WA-28-P Operator 15.78%-33.3% Oil and gas prone basin
WA-93-R Operator 70% Gas prone basin
WA-94-R Operator 70% Gas prone basin
Europe
Ireland FEL 5/13 Operator Exit initiated Oil or gas prone basin
Africa
Senegal Rufisque, Sangomar and Sangomar Deep (RSSD) Operator Exit initiated 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 El Dabaa Offshore (Block 4) Non-operator 27% Oil and gas prone basin
Caribbean
Barbados Bimshire Bay Operator 60% - Exit initiated Oil or gas prone basin
North America
US Gulf of Mexico GB 780, GB 824, GB 825, GB 821, GB 866, EB 636, EB 637, EB 550, EB 594, EB Operator 100% Oil prone basin
638, KC 859, KC 903, KC 904, KC 905, KC 948, KC 949, WR 795, WR 796
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 210, GC 211
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 914
MC 798, MC 842 Non-operator 45% Oil prone basin
AC 125, AC 126, AC 81, AC 82 Operator 45% Oil prone basin
GC 679, GC 768 Non-operator 31.9% 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 870 Non-operator 23.9% Oil prone basin
AT 228, AT 273, AT 274, AT 409, AT 452, AT 453, AT 454, AT 424, AT 425, AT Non-operator 30% Oil prone basin
469, AT 470
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. Although certain non-IFRS data has been extracted or derived from
the Half-Year financial statements, this data has not been audited or reviewed
by Woodside's independent auditors. These measures are presented to provide
further insight into Woodside's performance. See Non-IFRS Measures on page 57
for more information.
APMs and their nearest respective IFRS measure.
APMs derived from the condensed consolidated income statement 30 June 30 June
2024 2023
US$m US$m
EBIT/EBITDA excluding impairment
Net profit after tax 1,972 1,766
Adjusted for:
Finance income (95) (174)
Finance costs 147 137
PRRT expense 192 778
Income tax expense 146 284
EBIT 2,362 2,791
Adjusted for:
Oil and gas properties depreciation and amortisation 1,893 1,944
Amortisation of licence acquisition costs 5 4
Amortisation of intangible assets 10 -
Depreciation of lease assets 101 81
Impairment losses - 68
EBITDA excluding impairment 4,371 4,888
Underlying NPAT
Net profit after tax attributable to equity holders of the parent 1,937 1,740
Adjusted for the following exceptional items:
Add: Derecognition of Pluto PRRT (post-tax) - 446
Add: Impairment losses (post-tax) - 29
Less: Sangomar DTA recognition (305) -
Less: Trion DTA recognition - (319)
Underlying NPAT 1,632 1,896
APMs derived from the condensed consolidated statement of cash flows and other 30 June 30 June
notes
2024 2023
US$m US$m
Capital expenditure ( ) ( )
Capital additions on evaluation 42 76
Capital additions on oil and gas properties 2,212 2,555
Capital additions on other(1) 111 138
Capital expenditure 2,365 2,769
1. Includes capital additions on other corporate spend. The 2023
amounts have been restated to be presented on the same basis.
APMs derived from the condensed consolidated statement of cash flows and other 30 June 30 June
notes (continued)
2024 2023
US$m US$m
Exploration expenditure
Exploration and evaluation expenditure 103 138
Adjusted for:
Amortisation expense (5) (4)
Prior year expense written off - (1)
Exploration capitalised 14 54
Exploration expenditure 112 187
Capital and exploration expenditure 2,477 2,956
Free cash flow
Cash flow from operating activities(2) 2,393 2,951
Cash flow used in investing activities (1,653) (2,637)
Free cash flow 740 314
Liquidity
Cash and cash equivalents 1,979 3,469
Add: Available undrawn facilities 6,500 4,050
Less: Restricted cash - (10)
Liquidity 8,479 7,509
2. Purchases of shares relating to employee share plans, which were
previously classified within cash flows used in operating activities, has been
classified within cash flows used in financing activities for the half-year
ended 2024. The 2023 amounts have been restated to be presented on the same
basis.
APMs derived from the condensed consolidated statement of financial position 30 June 30 June
2024 2023
US$m US$m
Net tangible assets per ordinary security
Net assets 35,829 36,684
Adjusted for:
Goodwill (3,697) (4,669)
Non-controlling interest (759) (775)
Intangible assets (205) (103)
Net tangible assets 31,168 31,137
Number of issued and fully paid shares 1,898,749,771 1,898,749,771
Net tangible assets per ordinary security 16.42 16.40
Gearing
Interest-bearing liabilities (Current and non-current) 5,822 5,109
Lease liabilities (Current and non-current) 1,545 1,570
Adjusted for:
Cash and cash equivalents (1,979) (3,469)
Add: Restricted cash - 10
Net debt 5,388 3,220
Equity attributable to equity holders of the parent 35,070 35,909
Total net debt and equity attributable to equity holders of the parent 40,458 39,129
Gearing (%) 13.3 8.2
APMs derived from the condensed consolidated income statement and statement of 30 June 30 June
financial position
2024 2023
US$m US$m
Return on equity
Net profit after tax attributable to equity holders of the parent 1,937 1,740
Equity attributable to equity holders of the parent 35,070 35,909
Return on equity (%) 5.5 4.8
Return on average capital employed
Profit before tax and net finance costs 2,362 2,791
Opening non-current liabilities 15,209 15,586
Closing non-current liabilities 14,932 15,109
Average non-current liabilities 15,071 15,348
Opening equity attributable to equity holders of the parent 34,399 36,336
Closing equity attributable to equity holders of the parent 35,070 35,909
Average equity attributable to equity holders of the parent 34,735 36,123
Total average non-current liabilities and equity attributable to equity 49,806 51,471
holders of the parent
Return on average capital employed (%) 4.7 5.4
APMs derived from other notes 30 June 30 June
2024 2023
US$m US$m
Revenue from sale of hydrocarbons (excluding marketing segment) 5,376 6,486
Cash margin (excluding marketing segment)
Gross profit/(loss) 2,526 3,221
Adjusted for:
Other cost of sales 21 -
Trading costs - 4
Oil and gas properties depreciation and amortisation 1,893 1,944
Other revenue (99) 41
Cash margin (excluding marketing segment) 4,341 5,210
Cash margin % 81% 80%
Production costs (excluding marketing segment) 745 807
Production cost margin % 14% 13%
Other cash costs (excluding marketing segment):
Royalties, excise and levies 196 316
Insurance 26 34
Inventory movement (62) (33)
Shipping and direct sales costs 104 145
Other hydrocarbon costs 26 7
Total other cash costs (excluding marketing segment) 290 469
Other cash cost margin % 5% 7%
Notes
Glossary
Term Definition
$, $m US dollars unless otherwise stated, millions of dollars
1P Proved reserves
2C Best Estimate of Contingent resources
2P Proved plus Probable reserves
Abate/abatement Avoidance, reduction or removal of an amount of carbon dioxide or equivalent.
ASX Australian Securities Exchange
A$, AUD Australian dollars
BHP Petroleum 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.
Biodiversity Biological diversity means the variability among living organisms from all
sources including, inter alia, terrestrial, marine and other aquatic
ecosystems and the ecological complexes of which they are a part; this
includes diversity within species, between species and of ecosystems.(1)
Board The Board of Directors of Woodside Energy Group Ltd
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 tCO(2)-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 Gross profit/loss adjusted for other cost of sales, trading costs, oil and gas
properties depreciation and amortisation and other revenue. Excludes the
marketing segment. Cash margin % is calculated as cash margin divided by
revenue from sale of hydrocarbons (excluding marketing segment).
CCS Carbon capture and storage
CCUS Carbon capture utilisation and storage
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.(2)
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
Emissions Emissions refers to emissions of greenhouse gases unless otherwise stated.
EPS Earnings per share
Exploration expenditure Includes exploration and evaluation expenditure less amortisation of licence
acquisition costs and prior year exploration expense written off.
Extended Interest Joint Ventures or Extended Interest JVs The Extended Interest Joint Ventures commenced on 1 August 2020 and cover the
relevant joint venturers' production entitlement for equity lifted LNG and
pipeline gas from the North West Shelf Project. Woodside' participating
interest in the Extended Interest Joint Ventures is 31.567%.
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)).(2)
Goal Woodside uses this term to broadly encompass its targets and aspirations.
Gross margin Gross profit divided by operating revenue. Gross profit excludes income tax,
PRRT, net finance costs, other income and other expenses.
H1, H2 Halves of the calendar year (H1 is 1 January to 30 June and H2 is 1 July to 31
December).
HSE Health, safety and environment
IFRS International Financial Reporting Standards
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 ammonia Lower carbon ammonia is characterised here by the use of hydrogen with
emissions abated by carbon, capture, and storage (CCS), with an expected
ammonia lifecycle (Scope 1, 2 and 3) carbon emissions intensity of 0.8
tCO(2)/tNH(3) (based on contracted intensity threshold with Linde) relative to
unabated ammonia with a lifecycle (Scope 1, 2 and 3) carbon emissions
intensity of 2.3 tCO(2)/tNH(3) (Hydrogen Europe, 2023).
Lower carbon portfolio For Woodside, a lower carbon portfolio is one from which the net equity Scope
1 and 2 greenhouse gas emissions, which includes the use of offsets, are being
reduced towards targets, and into which new energy products and lower carbon
services are planned to be introduced as a complement to existing and new
investments in oil and gas. Our Climate Policy sets out the principles that we
believe will assist us achieve this aim.
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.
Other cash cost margin Other cash costs include royalties, excise and levies, insurance, inventory
movement, shipping and direct sales costs and other hydrocarbon costs.
Excludes the marketing segment. Other cash cost margin % is calculated as
other cash costs divided by revenue from sale of hydrocarbons (excluding
marketing segment).
Production cost margin Production cost margin % is calculated as production costs divided by revenue
from sale of hydrocarbons. Excludes the marketing segment.
PRRT Petroleum resources rent tax
PSC Production sharing contract
PSE Process safety event
Revenue from ordinary activities Revenue from the sale of hydrocarbons, processing and services revenue and
shipping and other revenue.
RFSU Ready for start up
RSSD Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore.
Scope 1 GHG emissions Direct GHG emissions. These occur from sources that are owned or controlled by
the company, for example, emissions from combustion in owned or controlled
boilers, furnaces, vehicles, etc.; emissions from chemical production in owned
or controlled process equipment. Woodside estimates greenhouse gas emissions,
energy values and global warming potentials are estimated in accordance with
the relevant reporting regulations in the jurisdiction where the emissions
occur (e.g. Australian national Greenhouse and Energy Reporting (nGER), US EPA
Greenhouse Gas Reporting Program (GHGRP)). Australian regulatory reporting
principles have been used for emissions in jurisdictions where regulations do
not yet exist.(3)
Scope 2 GHG emissions Electricity indirect GHG emissions. Scope 2 accounts for GHG emissions from
the generation of purchased electricity consumed by the company. Purchased
electricity is defined as electricity that is purchased or otherwise brought
into the organisational boundary of the company. Scope 2 emissions physically
occur at the facility where electricity is generated. Woodside estimates
greenhouse gas emissions, energy values and global warming potentials are
estimated in accordance with the relevant reporting regulations in the
jurisdiction where the emissions occur (e.g. Australian national Greenhouse
and Energy Reporting (nGER), US EPA Greenhouse Gas Reporting Program (GHGRP)).
Australian regulatory reporting principles have been used for emissions in
jurisdictions where regulations do not yet exist.(3)
Scope 3 GHG emissions Other indirect GHG emissions. Scope 3 is a reporting category that allows for
the treatment of all other indirect emissions. Scope 3 emissions are a
consequence of the activities of the company but occur from sources not owned
or controlled by the company. Some examples of Scope 3 activities are
extraction and production of purchased materials; transportation of purchased
fuels; and use of sold products and services. Please refer to the data table
on page 72 of the Climate Transition Action Plan and 2023 Progress Report for
further information on the Scope 3 emissions categories reported by
Woodside.(3)
Significant environmental event Unplanned or undesired event resulting in a moderate, medium-term impact on
ecosystem, species, habitat or physical or biological attributes.
Sustainably (including sustainable and sustainably) References to sustainability (including sustainable and sustainably) are used
with reference to Woodside's Sustainability Committee and sustainability
related Board policies, as well as in the context of Woodside's aim to ensure
its business is sustainable from a long-term perspective, considering a range
of factors including economic (including being able to sustain our business in
the long term by being low cost and profitable), environmental (including
considering our environmental impact and striving for a lower carbon
portfolio), social (including supporting our license to operate), and
regulatory (including ongoing compliance with relevant legal obligations). Use
of the terms 'sustainability', 'sustainable' and 'sustainably' is not intended
to imply that Woodside will have no adverse impact on the economy,
environment, or society, or that Woodside will achieve any particular
economic, environmental, or social outcomes.
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
Tier 1 PSE A typical Tier 1 process safety event is loss of containment of hydrocarbons
greater than 500 kg (in any one-hour period).
Tier 2 PSE A typical Tier 2 process safety event is loss of containment of hydrocarbons
greater than 50 kg but less than 500 kg (in any one-hour period).
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 cost or UPC Production costs ($ million) divided by production volume (MMboe)
US, USA United States of America
USD US dollars
WA Western Australia
1. UNEP,1992. "Convention on Biological Diversity'
https://www.cbd.int/doc/legal/cbd-en.pdf.
2. 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.
3. World Resources Institute and World Business Council for
Sustainable Development 2004. "GHG Protocol: a corporate accounting and
reporting standard".
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 1 bbl 1 boe
Facility Unit LNG conversion factor
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
GJ gigajoule
ha hectare
Mbbl thousand barrels
Mbbl/d thousand barrels per day
Mboe thousand barrels of oil equivalent
Mboe/d thousand barrels of oil equivalent per day
Mcf thousand cubic feet of gas
MMboe million barrels of oil equivalent
MMBtu million British thermal units
MMscf million standard cubic feet of gas
MMscf/d million standard cubic feet of gas per day
Mtpa million tonnes per annum
MW megawatt
PJ petajoules
scf standard cubic feet of gas
TJ terajoule
tpd tonnes per day
About this report
This Half-Year Report 2024 is a summary of Woodside's operations, activities
and financial position as at 30 June 2024. 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 2024 and 30 June 2024. 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 2023 and the
Climate Transition Action Plan and 2023 Progress Report available at
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, outcomes of
transactions, including the timing, terms and potential benefits of the
proposed acquisition of Tellurian and OCI's Clean Ammonia Project, statements
regarding long-term demand for Woodside's products, development, completion
and execution of Woodside's projects, expectations regarding future capital
expenditures, the payment of future dividends and the amount thereof, future
results of projects, operating activities and new energy products,
expectations and plans for renewables production capacity and investments in,
and development of, renewables projects expectations and guidance with respect
to production, capital and exploration expenditure and gas hub exposure, and
expectations regarding the achievement of Woodside's net equity Scope 1 and 2
greenhouse gas emissions reduction and new energy investment targets and other
climate and sustainability goals.
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', 'aspire', '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 for Woodside's products,
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, the actions of third parties, project delay or
advancement, regulatory approvals, the impact of armed conflict and political
instability (such as the ongoing conflict in Ukraine and in the Middle East)
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, the
impact of general economic conditions, inflationary conditions, prevailing
exchange rates and interest rates and conditions in financial markets, and
risks associated with acquisitions, mergers and joint ventures, including
difficulties integrating businesses, uncertainty associated with financial
projections, restructuring, increased costs and adverse tax consequences, and
uncertainties and liabilities associated with acquired and divested properties
and businesses.
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.
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.
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.
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, Liquidity, Free cash flow, Capital
expenditure, Exploration expenditure, Return on Equity, Return on average
capital employed, Cash margin, Production cost margin, Other cash cost margin,
Net tangible assets and Net tangible assets 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 50 - 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, including references to
'lower carbon' and 'lower carbon services' as part of that strategy, and
emissions data, refer to Woodside's Climate Transition Action Plan and 2023
Progress Report available at woodside.com.
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 REGISTERED ADDRESS
Marcela Louzada Dan Pagoda (Australia) Woodside Energy Group Ltd
M: +61 456 994 243 M: +61 482 675 731 ACN 004 898 962
E: investor@woodside.com (mailto:investor@woodside.com) E: dan.pagoda@woodside.com (mailto:dan.pagoda@woodside.com) Mia Yellagonga
11 Mount Street
Rob Young (United States) Perth WA 6000
M: +1 281 790 2805 Australia
E: robert.young@woodside.com (mailto:robert.young@woodside.com) T +61 8 9348 4000
www.woodside.com (http://www.woodside.com)
This announcement was approved and authorised for release by Woodside's
Disclosure Committee.
1 (#_ftnref1) Non-IFRS measure. Refer to pages 50 - 52 for further
information.
(( 2 (#_ftnref2) )) Woodside cancelled $1,550 million of undrawn facilities
in July 2024. This cancellation has the effect of reducing our liquidity by
$1,550 million.
3 (#_ftnref3) Calculated based on Woodside's closing share price on 28 June
2024 of A$28.21 and a US$:A$ exchange rate of 0.67.
4 (#_ftnref4) The completion % excludes the Pluto Train 1 modifications
project.
5 (#_ftnref5) The SPA is with JERA Scarborough Pty Ltd which is a wholly
owned subsidiary of JERA Co., Inc. Subject to completion of the transaction,
targeted for the second half of 2024. See "Woodside to sell 15.1% Scarborough
interest to JERA", announced 23 February 2024.
6 (#_ftnref6) LJ Scarborough Pty Ltd (LNG Japan) is a jointly owned
subsidiary of LNG Japan Corporation (which is a 50:50 joint venture between
Sumitomo Corporation and Sojitz Corporation) and Japan Organization for Metals
and Energy Security (JOGMEC). JOGMEC has a 49.9% interest in LJ Scarborough
Pty Ltd. See "Woodside completes sale of 10% Scarborough interest", announced
26 March 2024.
7 (#_ftnref7) See "Woodside to acquire Tellurian and Driftwood LNG",
announced 22 July 2024 and "Woodside to acquire OCI's Clean Ammonia Project",
announced 5 August 2024.
8 (#_ftnref8) 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, but 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 on pages 50 - 52 for a reconciliation for these measures to
Woodside's financial statements and Non-IFRS Measures on page 57 for more
information about non-IFRS measures.
9 (#_ftnref9) Net profit after tax attributable to equity holders of the
parent.
10 (#_ftnref10) Subsequent to achieving first oil on the Sangomar project in
June 2024, the Group has recognised a net deferred tax asset of $305 million.
The expected sale of Woodside's 15.1% share in the Scarborough Joint Venture
resulted in the recognition of a net tax benefit of $91 million. These events
have resulted in a reduction of the global effective income tax rate from
25.6% to 6.9%. In the prior period, as a result of the final investment
decision to develop the Trion resource, the Group recognised deferred tax
assets of $319 million, resulting in a reduction of the global effective
income tax rate from 29.6% to 13.9%.
11 (#_ftnref11) Purchases of shares relating to employee share plans, which
were previously classified within cash flows used in operating activities, has
been classified within cash flows used in financing activities for the
half-year ended 2024. The 2023 comparatives have been reclassified to be
presented on the same basis.
12 (#_ftnref12) Capital additions on oil and gas properties, evaluation
capitalised and other corporate spend. Excludes exploration capitalised and
the effect of Global Infrastructure Partners' (GIP) additional contribution to
Pluto Train 2. The H1 2023 capital expenditure has been restated to include
other corporate spend.
13 (#_ftnref13) Exploration and evaluation expenditure less amortisation
costs and prior year exploration expense written off.
14 (#_ftnref14) Cash flow from operating activities less cash flow from
investing activities.
15 (#_ftnref15) Includes production of 88.7 MMboe from Woodside reserves and
0.6 MMboe primarily from feed gas purchased from Pluto non-operating
participants processed through the Pluto-KGP Interconnector.
16 (#_ftnref16) The conversion factors used throughout this report are set
out on page 55, unless otherwise stated. Sales volumes differ from production
volumes primarily due to the timing of liftings and the exclusion of
third-party purchased volumes.
17 (#_ftnref17) Comparisons are to half-year ended 30 June 2023.
18 (#_ftnref18) Calculated based on Woodside's closing share price on 28
June 2024 of A$28.21 and a US$:A$ exchange rate of 0.67.
19 (#_ftnref19) These are non-IFRS measures. Refer to Alternative
Performance Measures for a reconciliation for these measures to Woodside's
financial statements on pages 50 - 52 and Non-IFRS Measures on page 57 for
more information about non-IFRS measures.
20 (#_ftnref20) Cash flow from operating activities less cash flow from
investing activities.
21 (#_ftnref21) The 22nd well was drilled subsequent to the period.
22 (#_ftnref22) Subject to conditions and agreements on terms for this
period.
23 (#_ftnref23) Woodside uses the term "lower-carbon" 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 product. Refer to 'Climate strategy
and emissions data' on page 57 for more information.
24 (#_ftnref24) The completion % excludes the Pluto Train 1 modifications
project.
25 (#_ftnref25) The SPA is with JERA Scarborough Pty Ltd which is a wholly
owned subsidiary of JERA Co., Inc.
26 (#_ftnref26) LJ Scarborough Pty Ltd (LNG Japan) is a jointly owned
subsidiary of LNG Japan Corporation (which is a 50:50 joint venture between
Sumitomo Corporation and Sojitz Corporation) and Japan Organization for Metals
and Energy Security (JOGMEC). JOGMEC has a 49.9% interest in LJ Scarborough
Pty Ltd. The sale proceeds received by Woodside of US$910 million for equity
in the Scarborough Joint Venture comprises the purchase price, reimbursed
expenditure and escalation.
27 (#_ftnref27) Woodside's 90% participating interest in the Scarborough
Joint Venture is prior to the completion of the sell-down of 15.1% interest to
JERA.
28 (#_ftnref28) The supply of carbon abated hydrogen is dependent on
ExxonMobil's CCS facility becoming operational.
29 (#_ftnref29) Comparisons are to half-year ended 30 June 2023.
30 (#_ftnref30) Includes lease assets and liabilities as a result of AASB 16
Leases. Net Tangible Assets per ordinary security is a non-IFRS measure. Refer
to Alternative Performance Measures for a reconciliation for these measures to
Woodside's financial statements on pages 50 - 52.
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