Woodside has achieved record production of 187.2 MMboe (513
Mboe/d) and excellent operated LNG reliability of 98%. We recorded
full-year net profit after tax (NPAT) of $1,660 million, and
underlying NPAT of $3,320 million when adjusted for exceptional
items, and operating cash flow was $6,145 million.1
The Directors have determined a final dividend of US 60 cents
per share (cps), bringing the full-year dividend to US 140 cps. The
dividend is fully franked. The value of the total full-year
dividend is $2,658 million.
Woodside CEO Meg O’Neill said she was tremendously proud that at
a time of inflationary pressures, Woodside continued to return
strong dividends to shareholders while delivering on our strategy
to thrive through the energy transition.
“Woodside is supplying energy the world needs from a
high-quality portfolio which is geographically advantaged to meet
growing demand for LNG.
“Our focus on disciplined capital management has allowed us to
deliver consistently strong returns to shareholders. Underlying
profit was strong, enabling us to maintain an 80% dividend payout
ratio.
"While realised prices were down year-on-year to levels closer
to historic norms, annual sales volume topped 200 million barrels
of oil equivalent (over 548 Mboe/d), generating revenue of almost
$14 billion. Free cash flow of $560 million was a significant
achievement in a period of major capital expenditure and normalised
prices.
“We are contributing to Australia. Our tax contribution in
Australia was a record A$5 billion in 2023 and we are committed to
maintaining the delivery of affordable, reliable gas to Australian
customers. For over almost 40 years of operations in WA, Woodside
has supplied domestic gas volumes equivalent to more than one third
of our exported liquefied natural gas (LNG) volumes.
“Climate is integral to our company strategy and we are on track
to meet our net equity Scope 1 and 2 emissions reduction targets.
Across our business in 2023 Woodside achieved a reduction in net
equity Scope 1 and 2 emissions of 12.5% below the starting base,
against our target of 15% by 2025.2
“The 2023 result was built on record annual production of 187.2
million barrels of oil equivalent (513 Mboe/d) in the first full
year following the completion of the merger with BHP’s petroleum
business. The production outcome was underpinned by another
outstanding year at our operated LNG assets, which achieved 98%
reliability over the year. Despite the inflationary environment,
unit production cost was steady at $8.3/boe.
“Our debt-free merger with BHP Petroleum added cash generating
assets and strengthened Woodside’s balance sheet, giving us
capacity for future capital investments as well as ongoing returns.
Gearing at year-end was 12.1% and our total available liquidity was
$7.8 billion, helping maintain our investment-grade credit
ratings.
“We achieved our value objectives for the sale of 10% equity in
the Scarborough Joint Venture to LNG Japan.3 This was followed in
2024 by the sale of 15.1% equity to JERA.4 These transactions
demonstrate the ongoing demand for new gas supplies to support
regional energy security.
“Across the industry, contracts for LNG continue to be signed
with long durations, signalling confidence in the future strength
of the market from both buyers and sellers. Woodside is
geographically advantaged to meet the forecast growing demand for
LNG in Asia.
“Significant progress was made on Woodside’s major growth
projects over the course of the year. The floating production
storage and offloading facility arrived at the Sangomar oil field
off Senegal in February and with 17 wells now drilled and completed
at the project, we are on track for first production in
mid-2024.
“The Scarborough Energy Project received four key environmental
approvals in December 2023 and was 55% complete at the end of the
year. We welcome the Australian Government’s plans to reform the
system for offshore approvals and are participating in the current
consultation process.
“Since the start of 2024, we’ve completed the initial drydock of
the hull for the Scarborough floating production unit and the first
modules for Pluto Train 2 have arrived and been installed on site
in Western Australia.
“In 2023, we took a final investment decision (FID) on Trion,
which is a large, high-quality resource and will be Mexico’s first
deepwater oil development. Expected returns from the development
exceed Woodside’s capital allocation framework targets and the
asset will be a strong contributor to Woodside’s future
cashflows.
“Woodside’s safety performance in 2023 was again below the
standard we set for ourselves, with the tragic loss of a colleague
at the North Rankin Complex. We have taken action to prevent a
repeat of such events, commissioning an external review of our
safety systems. It is imperative that we do better in 2024.
“In our Climate Transition Action Plan released today, Woodside
announced a new target to take FID on new energy products and lower
carbon services with total greenhouse gas emissions abatement
capacity of 5 million tonnes per annum by 2030. This will
complement our existing target to invest $5 billion in such
products and services in the same timeframe with a focus on the
abatement impact of these products.
“We continued to be disciplined and value-focused in pursuing
new energy opportunities. We progressed H2OK to technical readiness
for FID and are evaluating the proposed US Federal tax incentive
criteria. We also commenced concept select for Angel carbon capture
and storage, which has the potential to address Woodside Scope 1
emissions and customer emissions.
“In 2024, we are looking forward to celebrating 40 years of
safe, reliable domestic gas supply to Western Australia and 35
years of LNG supply to customers overseas.
“We are focused on delivering first oil from Sangomar and
progressing the Scarborough Energy Project and Trion
development.”
Financial headlines
Metric
Units
FY23
FY22
Change
NPAT
$million
1,660
6,498
(74%)
Underlying NPAT1
$million
3,320
5,230
(37%)
Operating revenue
$million
13,994
16,817
(17%)
Operating cashflow
$million
6,145
8,811
(30%)
Free cash flow5
$million
560
6,546
(91%)
Annual sales volume
MMboe Mboe/d
201.5 552
168.9 463
19%
Averaged realised price
$/boe
68.6
98.4
(30%)
Unit production cost
$/boe
8.3
8.1
2%
Fully franked final dividend
US cps
60
144
(58%)
Full-year fully franked dividend
US cps
140
253
(45%)
Compared with 2022, 2023 full-year financial statements
primarily reflected lower prices across all commodities, partly
offset by higher sales volumes.
Reported results include non-cash post-tax asset impairments
amounting to $1,533 million ($1,917 million pre-tax), reflecting
approximately $1,178 million ($1,383 million pre-tax) impairment
for the Shenzi asset. This is primarily related to goodwill and a
portion of the purchase price assigned to Shenzi on completion of
the merger with BHP Petroleum. The goodwill and purchase price
allocation resulted from application of acquisition accounting
principles and reflect both higher hydrocarbon prices and
Woodside’s share price at the merger completion date. Goodwill is
not amortised and, once impaired, is not subject to a future
impairment reversal. For reference, Shenzi represented
approximately 5% of 2023 production and approximately 2% of 2023
year-end proved plus probable reserves.
Key business activities
Strategic achievements
- Delivered record production in the first full-year period
following the merger with BHP petroleum
- Signed multiple agreements to sell an equity interest in the
Scarborough Joint Venture to LNG Japan and, subsequent to the
period, JERA, and established a broader strategic relationship
which includes potential LNG offtake and collaboration on
opportunities in new energy and carbon management6
- Approved a final investment decision (FID) on the Trion
project, which is expected to generate strong returns and commence
production in 2028
- Signed a sales and purchase agreement (SPA) with Mexico
Pacific, strategically expanding our trading portfolio7
Operations and projects
- Delivered annual production of 187.2 MMboe (513 Mboe/d)
- Maintained strong operated LNG reliability of 98%
- Reduced net equity Scope 1 and 2 emissions 12.5% below starting
base8
- Achieved first oil at Mad Dog Phase 2 Argos facility, in the US
Gulf of Mexico
- Continued to unlock additional phases of existing projects
including FIDs at Mad Dog Southwest, Julimar Brunello Phase 3 and
Lambert West9
- Progressed future growth projects at Sangomar and
Scarborough
Full-year reporting
Woodside’s Annual Report 2023 provides further detail on our
operations, activities and our financial position for the 12-month
period ended 31 December 2023.
Woodside’s approach to climate is an integral part of our
company strategy. Woodside’s Climate Transition Action Plan 2023
(CTAP) outlines our approach to climate change and strategy for
Woodside to thrive
through the energy transition as a low cost, lower carbon energy
provider.
Full-year results teleconference
A teleconference providing an overview of the full-year 2023
results and a question-and-answer session will be hosted by
Woodside CEO and Managing Director, Meg O’Neill, and Chief
Financial Officer, Graham Tiver, today at 10:00 AEDT / 07:00 AWST
(17:00 CST on Monday, 26 February 2024).
We recommend participants pre-register 5 to 10 minutes prior to
the event with one of the following links:
- https://webcast.openbriefing.com/wds-fyr-2024/ to view the
presentation and listen to a live stream of the question-and-answer
session
- https://s1.c-conf.com/diamondpass/10035979-fh876t.html to
participate in the question-and-answer session. Following
pre-registration, participants will receive the teleconference
details and a unique access passcode.
The full-year results briefing pack follows this announcement
and will be referred to during the teleconference. The briefing
pack, Annual Report 2023, CTAP 2023, and teleconference archive
will also be available on the Woodside website
(www.woodside.com).
Climate Transition Action Plan presentation
A teleconference to provide an overview of Woodside’s Climate
Transition Action Plan 2023 will be hosted on Tuesday, 12 March
2024 at 09:30 AEDT / 06:30 AWST / 17:30 CDT (Monday, 11 March
2014).
We recommend participants pre-register 5 to 10 minutes prior to
the event with the following link:
- https://s1.c-conf.com/diamondpass/10035868-hf74t6.html to view
the presentation and listen to a live stream of the question and
answer.
Annual General Meeting
Woodside’s Annual General Meeting will be held in Perth, Western
Australia, on Wednesday, 24 April 2024 at 13:00 AEDT / 10.00 AWST
(Tuesday, 23 April 20:00 CST).
This announcement was approved and authorised for release by
Woodside’s Disclosure Committee.
Forward-looking statements
This announcement contains forward-looking statements with
respect to Woodside’s business and operations, market conditions,
results of operations and financial condition, including, for
example, but not limited to, statements regarding development,
completion and execution of Woodside’s projects, expectations
regarding future capital expenditures, future results of projects,
operating activities, new energy products, expectations and plans
for renewables production capacity and investments in, and
development of, renewables projects, expectations and guidance with
respect to production, investment expenditure and gas hub exposure
for 2024, and expectations regarding the achievement of Woodside’s
net equity Scope 1 and 2 greenhouse gas emissions targets. All
statements, other than statements of historical or present facts,
are forward-looking statements and generally may be identified by
the use of forward-looking words such as ‘guidance’, ‘foresee’,
‘likely’, ‘potential’, ‘anticipate’, ‘believe’, ‘aim’, ‘estimate’,
‘expect’, ‘intend’, ‘may’, ‘target’, ‘plan’, ‘strategy’,
‘forecast’, ‘outlook’, ‘project’, ‘schedule’, ‘will’, ‘should’,
‘seek’ and other similar words or expressions. Similarly,
statements that describe the objectives, plans, goals or
expectations of Woodside are forward-looking statements.
Forward-looking statements in this presentation are not
guidance, forecasts, guarantees or predictions of future events or
performance, but are in the nature of future expectations that are
based on management’s current expectations and assumptions. Those
statements and any assumptions on which they are based are subject
to change without notice and are subject to inherent known and
unknown risks, uncertainties, assumptions and other factors, many
of which are beyond the control of Woodside, its related bodies
corporate and their respective Beneficiaries. Important factors
that could cause actual results to differ materially from those in
the forward-looking statements include, but are not limited to,
fluctuations in commodity prices, actual demand for Woodside
products, currency fluctuations, geotechnical factors, drilling and
production results, gas commercialisation, development progress,
operating results, engineering estimates, reserve and resource
estimates, loss of market, industry competition, environmental
risks, climate related risks, physical risks, legislative, fiscal
and regulatory developments, changes in accounting standards,
economic and financial markets conditions in various countries and
regions, political risks, project delay or advancement, regulatory
approvals, the impact of armed conflict and political instability
(such as the ongoing conflict in Ukraine) on economic activity and
oil and gas supply and demand, cost estimates, and the effect of
future regulatory or legislative actions on Woodside or the
industries in which it operates, including potential changes to tax
laws, and the impact of general economic conditions, inflationary
conditions, prevailing exchange rates and interest rates and
conditions in financial markets.
A more detailed summary of the key risks relating to Woodside
and its business can be found in the “Risk” section of Woodside’s
most recent Annual Report released to the Australian Securities
Exchange and the London Stock Exchange and in Woodside’s most
recent Annual Report on Form 20-F filed with the United States
Securities and Exchange Commission (SEC) and available on the
Woodside website at
https://www.woodside.com/investors/reports-investor-briefings. You
should review and have regard to these risks when considering the
information contained in this presentation.
Investors are strongly cautioned not to place undue reliance on
any forward-looking statements. Actual results or performance may
vary materially from those expressed in, or implied by, any
forward-looking statements.
Announcement contains inside information
This announcement contains inside information. Marcela Louzada,
Vice President Investor Relations is responsible for release of
this announcement.
Non-IFRS Financial Measures
Throughout this presentation, a range of financial and
non-financial measures are used to assess Woodside’s performance,
including a number of financial measures that are not defined in,
and have not been prepared in accordance with, International
Financial Reporting Standards (IFRS) and are not recognised
measures of financial performance or liquidity under IFRS (Non-IFRS
Financial Measures). These measures include EBIT, EBITDA, EBITDA
excluding impairment, Gearing, Underlying NPAT, Underlying earnings
per share, Net debt, Free cash flow, Cash margin, Capital
expenditure, and Exploration expenditure. These Non-IFRS Financial
Measures are defined in the glossary section of this presentation.
A quantitative reconciliation of these measures to the most
directly comparable financial measure calculated and presented in
accordance with IFRS can be found in Woodside’s Annual Report for
the period ended 31 December 2023.
Woodside’s management uses these measures to monitor Woodside’s
financial performance alongside IFRS measures to improve the
comparability of information between reporting periods and business
units and Woodside believes that the Non-IFRS Financial Measures it
presents provide a useful means through which to examine the
underlying performance of its business.
Undue reliance should not be placed on the Non-IFRS Financial
Measures contained in this presentation and these Non-IFRS
Financial Measures should be considered in addition to, and not as
a substitute for, or as superior to, measures of financial
performance, financial position or cash flows reported in
accordance with IFRS. Non-IFRS Financial Measures are not uniformly
defined by all companies, including those in Woodside’s industry.
Accordingly, they may not be comparable with similarly titled
measures and disclosures by other companies.
Other important information
All references to dollars, cents or $ in this presentation are
to US currency, unless otherwise stated.
References to “Woodside” may be references to Woodside Energy
Group Ltd and/or its applicable subsidiaries (as the context
requires).
1 Non-IFRS financial measure. Refer to the glossary section of
the attached presentation for the definition. 2 Targets and
aspiration are for net equity Scope 1 and 2 greenhouse gas
emissions relative to a starting base of 6.32 Mt CO2-e which is
representative of the gross annual average equity Scope 1 and 2
greenhouse gas emissions over 2016-2020 and which may be adjusted
(up or down) for potential equity changes in producing or
sanctioned assets with a final investment decision prior to 2021.
Net equity emissions include the utilisation of carbon credits as
offsets. 3 LNG Japan transaction subject to completion of the
transaction, targeted for the first quarter of 2024. 4 The sale and
purchase agreement is with JERA Scarborough Pty Ltd which is a
wholly owned subsidiary of JERA Co., Inc. Subject to completion of
the transaction, targeted for the second half of 2024. 5 Non-IFRS
financial measure. Refer to the glossary section of the attached
presentation for the definition. 6 LNG Japan transaction subject to
completion of the transaction, targeted for the first quarter of
2024. JERA transaction is subject to completion of the transaction,
targeted for the second half of 2024. 7 The SPA is subject to
Mexico Pacific taking FID on the proposed third train at the Saguaro
Energia LNG Project. The FID is expected in the second half of 2024
and commercial operations are targeted to commence in 2029. 8
Targets and aspiration are for net equity Scope 1 and 2 greenhouse
gas emissions relative to a starting base of 6.32 Mt CO2-e which is
representative of the gross annual average equity Scope 1 and 2
greenhouse gas emissions over 2016-2020 and which may be adjusted
(up or down) for potential equity changes in producing or
sanctioned assets with a final investment decision prior to 2021.
Net equity emissions include the utilisation of carbon credits as
offsets. 9 Lambert West was approved subsequent to the period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240226260567/en/
INVESTORS Marcela Louzada M: +61 456 994 243 E:
investor@woodside.com
MEDIA Christine Forster M: +61 484 112 469 E:
christine.forster@woodside.com
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