Woodside profit trebles in 2022 on higher prices, BHP merger

Australia’s Woodside Energy on February 27 reported a 228% year/year jump in net profit in 2022 thanks to higher energy prices and the merger with BHP’s petroleum business.

Woodside has recorded full-year net profit after tax of $6.5bn compared with $1.98bn in the previous year. The underlying profit, which strips out extraordinary items, came in at $5.23bn, up from $1.62bn a year ago. The company said its annual revenue rose to $16.82bn, from $6.96bn in 2021.

Woodside CEO Meg O’Neill said Woodside’s strategy delivered exceptional results in 2022, reflecting the success of the merger with BHP’s petroleum business, completed at the start of June.

“Woodside is now a larger, geographically diverse energy company with the financial and operational strength to grow our portfolio of high-quality assets while continuing to deliver returns to shareholders,” she said. “Woodside’s record output was underpinned by outstanding performance at our LNG assets, which achieved 98.5% reliability across the year.”

A total of 9.4mn barrels of oil equivalent was processed via the Pluto-KGP Interconnector, resulting in the supply of 13 additional Pluto LNG cargoes and delivering $1.2bn of incremental revenue. In 2022 Woodside’s realised price rose 63% yr/ye to $98.4/boe.

Woodside produced 157.7mn boe last year, beating prior guidance and much higher than the 91.1mn boe achieved in 2021. The company has reiterated its output forecast for 2023 at 180-190mn boe.