Woodside's underlying profit up 4% in H1

Australia’s Woodside on August 22 reported a 4% year/year increase in underlying net profit during the first half of 2023 driven by the expanded operations portfolio post-merger with BHP’s oil and gas business.

The company said that the underlying net profit, which strips out one-off items, was $1.90bn for the six months ended June 30, up from $1.82bn a year earlier. Net profit came in at $1.74bn, up 6% yr/yr. Operating revenue rose 27% yr/yr to $7.4bn.

Woodside stated that the Scarborough development was 38% complete. The Scarborough project centers around the Scarborough field, an offshore reservoir located approximately 375 km off the coast of Western Australia. The project envisions the installation of a floating production unit, a substantial well-drilling effort, and the establishment of a new trunkline spanning roughly 430 km.

Woodside recently agreed to sell a 10% stake in the $12bn Scarborough LNG project to LNG Japan for $500mn. LNG Japan, which is a 50-50 joint venture between Sumitomo Corporation and Sojitz Corporation, will also reimburse Woodside for its allocated expenditure related to the Scarborough project, dating back to January 1, 2022.

The final investment decision on the project was made in November 2021, with the commencement of LNG cargo targeted for 2026. Woodside will maintain a 90% interest in the Scarborough joint venture and will continue to operate the project.