Woodside posts 24% drop in first-half profit on lower prices, depreciation costs
Australia's Woodside Energy recorded a 24% slump in its first-half profit on Tuesday, pressured by lower realised prices and depreciation costs in its Sangomar oil project in Senegal.
Volatility in oil prices, driven by OPEC+ production increases, geopolitical uncertainty, and US tariffs, resulted in the company achieving an average price of $61.8 per barrel of oil equivalent in the first half, down from $62.6 per boe a year earlier.
Meanwhile, production costs, depreciation and amortisation related to the Sangomar project came in at $773-million during the period.
Consequently, the oil and gas giant reported an underlying net profit after tax of $1.25-billion for the six-month period ended June 30, compared with $1.63-billion last year and in line with Visible Alpha's consensus estimates.
Woodside's operating revenue, however, rose 10% to $6.59-billion, with the Sangomar project contributing nearly $1-billion.
It declared an interim dividend of 53 cents per share, lower than 69 cents declared last year.
Shares of Woodside dropped 1% to A$26.620 in early trade.
The company said it continues to receive "strong interest from high-quality potential partners" as it explore further sell-downs of the $17.5-billion Louisiana liquefied natural gas (LNG) project.
Woodside has already sold a 40% stake in the company holding the project's infrastructure assets to US investor Stonepeak for $5.7-billion and has also agreed to explore potential collaboration with Saudi Aramco on a possible equity investment and offtake agreement.
The company also said it was continuing to consult with the Australian government on the proposed conditions tied to the environmental approval of its North West Shelf LNG project extension.
Woodside is the operator and has 33% participating interest in the project, which is the country's oldest and largest LNG plant and a key supplier to Asian markets.
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