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Investing.com -- Woodside (OTC:WOPEY) reported better-than-expected first-half 2025 results, featuring lower costs and good progress on asset divestments.
The company posted second-quarter sales revenue of $3,275 million, representing a 1% decrease quarter-on-quarter but an 8% increase year-on-year. First-half revenue reached $6,590 million, accounting for 52% of the consensus full-year forecast of $12.6 billion.
Woodside achieved an average realized price of $60 per barrel of oil equivalent (boe), in line with historical pricing trends. LNG prices averaged $9.8 per million British thermal units (mmbtu), lower than the lagged Brent price for first-quarter 2025 of $75.0 per barrel or $10.5/mmbtu (14% slope). Gas hub exposure was 23% of LNG production, aligning with the full-year target of 28-35%.
Total (EPA:TTEF) production for the second quarter reached 50.1 million boe, up 2% quarter-on-quarter and 13% year-on-year. First-half production totaled 99.2 million boe, representing 52% of the annual targeted production range of 188-195 million boe at the midpoint.
The company updated its guidance to reflect the $259 million divestment of Greater Angostura assets expected in the third quarter. Sangomar is currently producing at peak production rate (101,000 barrels per day gross, 81,000 barrels per day net), though production will decline from plateau in the third quarter of 2025.
Woodside’s Scarborough project remains on track for first production in the second half of 2026. The company lowered its full-year unit production cost guidance from $8.5-9.2/boe to $8.0-8.5/boe, equating to $115 million in savings. Capital expenditure guidance was reduced by $500 million to $4.0-4.5 billion, while depreciation, depletion and amortization is expected to be $100 million higher at $4.7-5.0 billion.
In April, Woodside took final investment decision on Louisiana LNG Phase 1, which includes three trains with 16.5 million tonnes per annum capacity and targets first production in 2029. Train 1 was 22% complete at the end of the quarter. The company sold a 40% interest in the project to Stonepeak, with the transaction closing in June, and is exploring further selldown to reach a target 50% equity interest.
Woodside expects net debt to increase in 2025/26 before decreasing in 2027. At year-end 2024, net debt stood at $6.1 billion including cash of $3.9 billion, with net gearing at 17.9%, up from 12.1% in 2023 but within the target range of 10-20% for the growth phase.
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