Woodside’s strong H1 adds acquisitions while gearing and execution risks rise

Transcript intelligence

What changed

Woodside added Tellurian’s Driftwood LNG project and OCI’s clean ammonia project to its portfolio, while reporting Sangomar start-up and continued Scarborough progress. Compared with the prior analysis, the growth plan is broader, but gearing and integration risks are more prominent.

Guidance delta

Maintained; management reiterated its operating and development priorities.

Key takeaways

• H1 2024 net profit after tax was $1.9 billion, with a $0.69 per-share dividend.
• Unit production costs fell 6% to $8.30 despite inflationary pressure.
• Sangomar reached 100,000 barrels per day at start-up; Scarborough was 67% complete toward a 2026 first cargo.
• Driftwood LNG and OCI clean ammonia broaden Woodside’s LNG and lower-carbon portfolio.
• Management remained confident in LNG demand, but acquisitions, project costs and gearing add execution risk.

Management priorities

• Ramp up Sangomar and deliver Scarborough’s first LNG cargo in 2026.
• Reach final investment decision and execute the Driftwood LNG sell-down strategy.
• Bring OCI clean ammonia into commercial operation in 2025–26.
• Advance Trion toward first oil in 2028.
• Maintain safety improvements and pursue new-energy opportunities.