The Woodside Energy Group Ltd (ASX: WDS) share price is in focus after the energy giant reported its FY24 result.
Woodside is one of the biggest oil and gas companies in the Asia Pacific region.
Woodside FY24 result
Here are some of the highlights from the result for the 12 months to December 2024:
- Operating revenue fell 6% to US$13.2 billion
- Underlying net profit down 13% to US$2.88 billion
- Operating cashflow down 5% to US$5.8 billion
- Reported net profit up 115% to US$3.57 billion
- Final dividend down 12% to US$0.53 per share
- Full-year dividend down 13% to US$1.22 per share
Operational highlights
Woodside noted that while its annual sales volume increased 1% year on year to 203.5 million barrels of oil equivalent, the average realised price declined 7% to US$63.6 per barrel of oil equivalent (BOE).
This oil and gas business said its record annual production was at the top end of its full-year guidance range, underpinned by 98% reliability at its liquefied natural gas (LNG) facilities.
The company managed to somewhat offset this by reducing its unit production costs by 2% to US$8.1 per barrel of oil equivalent. It achieved this despite the inflationary pressures.
Project highlights
The new Sangomar project ramped up to its capacity within nine weeks of the June 2024 startup, contribution 12.9 million barrels of oil equivalent, generating approximately US$950 million of revenue. This will play its part in supporting the Woodside share price in the coming years.
During the year, its Scarborough project reached 80% completion and it’s on track for the first LNG cargo in 2026. LNG Japan acquired a 10% interest in Scarborough for $910 million, while JERA acquired a 15.1% interest for US$1.4 billion. Woodside said these transactions “reflect the long-term value that premium LNG customers in Japan are placing on energy security.”
In Mexico, the Trion project is more than 20% complete and is targeting first oil in 2028.
It also made investments in Louisiana LNG and Beaumont New Ammonia.
Louisina LNG is a US Gulf Coast project, permitted for 27.6mt per year of LNG production, with a “competitively priced” contract with Bechtel. It’s progressing towards a final investment decision “from the first quarter of 2025.”
Beaumont New Ammonia is “set to provide strong cashflows at current ammonia pricing and positions Woodside to be an early mover in the growing global market for premium lower-carbon ammonia once the associated carbon capture and storage (CCS) facility comes online” according to Woodside.
Outlook for the Woodside share price
The company gave guidance for a few elements for its 2025 financial year.
Unit production costs are predicted to be between US$8.5 to US$9.2 per BOE.
Property, plant and equipment depreciation and amortisation is forecast to be between US$4.5 billion to US$5 billion, and it expects to spend US$200 million on exploration.
It will continue to spend capital on its various projects.
In terms of production, it has guided between 186 to 196 million barrels of oil equivalent (MMboe). That compares to 193.9 MMboe of production in FY24.
In my opinion, success for the foreseeable future will depend on what happens with energy prices, which is difficult to forecast. Woodside is not the sort of business I’d invest in myself, but it could be a rebound opportunity at today’s low price.
However, there are other ASX dividend shares I’d rather look at for income.
