Woodside Energy Group Ltd (ASX: WDS) shares will be in focus this morning after the energy giant released its half year results.
Let's have a look at how the company performed during the half.
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Woodside shares on watch following half year results
- Operating revenue down 19% to US$5,988 million
- EBITDA excluding impairments down 11% to US$4,371 million
- Net profit after tax up 11% to US$1,937 million
- Underlying net profit after tax down 13.9% to US$1,632 million
- Interim dividend down 14% to 69 US cents per share
What happened during the half?
For the six months ended 30 June, Woodside reported a 19% decline in operating revenue to US$5,988 million. This reflects lower liquified natural gas (LNG) revenue, which offset higher crude oil revenue.
As it previously reported, Woodside achieved production of 89.3 MMboe for the half with a unit production cost down 5.7% to US$8.30 per barrel of oil.
This ultimately led to the company's EBITDA falling 11% to US$4,371 million and its underlying net profit after tax dropping 13.9% to US$1,632 million.
Things were better on a reported basis, with Woodside's net profit increasing 11% to US$1,937 million. However, this is due to the recognition of a net deferred tax asset of $305 million relating to Sangomar project after it achieved its first oil in June.
In light of its underlying profit decline, the Woodside board elected to cut its interim dividend by 14% to 69 US cents per share.
How does this compare to expectations?
Goldman Sachs was forecasting EBITDA of US$4.41 million and an interim dividend of 73 US cents per share.
Woodside has fallen short on both estimates, which could be bad news for its shares today. Though, a strong gain by oil prices overnight might be enough to offset this.
Management commentary
Woodside Energy's CEO, Meg O'Neill, appeared to be pleased with the results. She said:
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.
Woodside's production guidance for FY 2024 remains unchanged.
