TIDMWDS
RNS Number : 7936X
Woodside Energy Group Ltd
28 April 2023
Woodside Energy Group Ltd
ACN 004 898 962
Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T +61 8 9348 4000
www.woodside.com
ASX: WDS
NYSE: WDS
LSE: WDS
Announcement
Friday, 28 April 2023
AGM ADDRESS BY CHAIR RICHARD GOYDER AND CEO MEG O'NEILL
In accordance with the Listing Rules, please see attached
announcement relating to the above, for release to the market.
In addition, the AGM presentation has been submitted to the FCA
National Storage Mechanism and will shortly be available for
inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Contacts:
INVESTORS MEDIA
Matthew Turnbull Christine Forster
(Group) M: +61 484 112 469
M: +61 410 471 079 E: christine.forster@woodside.com
Sarah Peyman (Australia)
M: +61 457 513 249
Rohan Goudge (US)
M: +1 (713) 679-1550
E: investor@woodside.com
This announcement was approved and authorised for release by
Woodside's Disclosure Committee.
Forward looking statements
Disclaimer and important notice
This announcement may contain forward-looking statements with
respect to Woodside's business and operations, market conditions,
results of operations and financial condition which reflect
Woodside's views held as at the date of this announcement. 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', 'forecast', 'project',
'schedule', 'will', 'should', 'seek' and other similar words or
expressions.
Forward-looking statements are not guarantees of future
performance 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 officers, directors, employees, advisers or
representatives. Details 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 in Woodside's filings with the U.S. Securities and Exchange
Commission, including Woodside's Annual Report on Form 20-F. You
should review and have regard to these risks when considering the
information contained in this announcement.
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.
Woodside Energy Group Ltd.
2023 Annual General Meeting
Friday, 28 April 2023
Chair Richard Goyder
Good morning. My name is Richard Goyder and, as Woodside's
Chair, I would like to thank shareholders, Woodside staff and
guests for attending today's meeting, both in person and
on-line.
Before we commence, please take a few seconds to familiarise
yourselves with the evacuation procedures shown on the screen above
which would apply in the unlikely event of an emergency.
Following Woodside's merger last year with BHP's petroleum
business, we have evolved into a truly global company. But our
headquarters remain right here in Perth, on Whadjuk Noongar
country.
With this in mind, I would like to acknowledge the Whadjuk
people of the Noongar nation as the traditional owners of the land
on which we meet today, and pay my respects to Elders past, present
and emerging. I recognise their continuing connection to culture
and contribution to this city that Woodside is proud to call its
home.
The invaluable contribution made by the Noongar people in this
region of WA, conserving and caring for the land on which we live
and work each day, is something I am personally thankful for,
having grown up on Noongar country in the small towns of Tambellup
and Broomehill.
I also recognise the many traditional custodians that protect
and preserve the rich cultural heritage in areas where Woodside's
operations are located - particularly the Ngarda-Ngarli people as
the collective custodians of Murujuga, where Woodside has operated
for almost 40 years.
As we move towards a referendum on the Indigenous Voice later
this year, I also highlight Woodside's strong support for the Uluru
Statement from the Heart, and our continued commitment to listen
closely to, and learn from, Indigenous voices.
Our Annual General Meeting is an event that the Board looks
forward to every year, as it gives us a chance to hear directly
from our shareholders and respond to your questions.
You will have an opportunity to ask questions or make comments
during formal business, however I encourage those shareholders
joining us virtually, who wish to submit a written question or
comment, to begin doing so now. This will enable the timely receipt
of these questions.
You can do this via the same platform you are already using to
view this webcast, by following the instructions shown on the
slide. Select the messaging tab, select the category your question
relates to and type your question in the 'Ask a question' box and
select the send arrow.
I will summarise the process for submitting verbal questions
online, and for asking questions from the floor, before we begin
the formal business section of today's meeting.
I'm joined on stage this morning by Chief Executive Officer and
Managing Director, Meg O'Neill, and Company Secretary, Warren
Baillie.
In the room with us are Directors Larry Archibald, Frank Cooper,
Swee Chen Goh, Ian Macfarlane, Ann Pickard, Gene Tilbrook, Ben
Wyatt, Chris Haynes, Sarah Ryan, and Arnaud Breuillac. Also joining
us is Angela Minas who, subject to shareholder approval, will join
the Board with effect from the conclusion of today's meeting.
Arnaud and Angela will introduce themselves to you during the
formal business section of today's meeting, when they stand for
election. Both bring a wealth of industry, financial and other
relevant experience that will make them valuable members of the
Woodside Board.
Last month Chris and Sarah announced their retirement as
Directors of Woodside, and they are standing down from their
positions at the conclusion of today's meeting. I would like to
sincerely thank Chris and Sarah for their outstanding service to
the Board, and their significant contribution to Woodside's success
over the past decade.
Justin Carroll and Anthony Hodge, representing our auditors
PricewaterhouseCoopers, are also present today.
A reminder as always that Woodside reports its results in US
dollars, and any reference to dollars this morning will be in US
currency unless stated otherwise.
During today's meeting, we may also make forward looking
statements with respect to various matters including Woodside's
business and operations. Investors are cautioned not to place undue
reliance on any forward-looking statements. Please refer to the
cautionary statement and disclaimer wording included in our ASX
announcement released earlier today and our annual report and other
filings with the ASX, LSE and SEC.
On behalf of the Board, I am pleased to update you on a historic
year for Woodside, which saw us complete the merger with BHP's
petroleum business, deliver record profit and become an even more
significant supplier of energy to the world.
Through our diverse global portfolio we are providing the energy
to heat and cool homes, keep lights on and support industry in more
places than ever, the value of which has been reinforced by events
of the past year.
Reflecting on Woodside's significant achievements in 2022, we
can see that the benefits of the merger have been immediate. Strong
operational performance from our enlarged portfolio allowed us to
capitalise on sustained high oil and gas prices across the year.
This led to a record annual net profit after tax of $6.5 billion,
an increase of 228 percent on 2021. Underlying NPAT was $5.2
billion, providing us with a strong balance sheet that positions
Woodside for major capital investment in future years, while
returning value to shareholders.
Earnings per share more than doubled in 2022 to 430 US cents,
while our total full-year dividend of 253 US cents per share was an
87 percent increase on the previous year. Our maintenance of an 80
percent payout ratio in 2022 meant that we returned $4.8 billion to
shareholders at a full-year yield of more than 10 percent.
Our record profit in 2022 also means we are delivering strong
returns through our payments to governments in Australia. Our total
Australian tax and royalty payments of A$2.7 billion in 2022
demonstrate that when Woodside and our industry performs well, our
contribution to government revenue is significant.
I am very proud to Chair a company that is delivering these
outstanding returns to our shareholders and the broader community
while continuing to invest in the oil, gas and new energy projects
that are laying the foundations for Woodside to thrive through the
energy transition.
In November 2021 the Board took the decision, on behalf of our
shareholders, to invest $12 billion US dollars in the Scarborough
and Pluto Train 2 projects in Western Australia.
Construction of these projects is progressing well, and we are
on target for first LNG cargo in 2026.
We were only able to make the decision to invest in Scarborough
and Pluto Train 2 because of the fiscal and regulatory certainty
that Australia has always offered in the past.
We will only be able to make future decisions to invest in both
significant new gas projects and the new energies such as ammonia
and hydrogen that will power our future, if that fiscal and
regulatory certainty is maintained. Otherwise, we expose our
shareholders' capital to unacceptable risk.
Internationally, we are making good progress on the Sangomar
project offshore Senegal, and remain on track to deliver first oil
later this year. We are also working towards readiness for final
investment decisions this year on the Trion oil project offshore
Mexico, and the H2OK hydrogen project in Oklahoma.
Meg will provide further updates on these major projects, and
our strong operational performance at producing assets across
Woodside's expanded portfolio. On behalf of the Board, I would like
to thank the entire Woodside team who delivered these excellent
results in 2022.
The troubling geo-political events of the past year, and
resulting volatility in global energy markets, have highlighted the
importance of a stable energy transition in which energy is
affordable, reliable and lower carbon. This drives Woodside's
strategy to continue building a low cost, lower carbon, resilient,
diversified and profitable portfolio that can provide energy to the
world, and deliver long-term value for shareholders, across
different energy transition scenarios.
The projects that we progressed during 2022, which I just
mentioned, reflect this diversity of location and product mix. And
this is also a feature of Woodside's next wave of growth
opportunities, including expansion of existing fields in the US
Gulf of Mexico, development of major gas fields such as Calypso,
Browse and Sunrise, and execution of new energy and lower carbon
opportunities including hydrogen and ammonia, solar, and carbon
capture utilisation and storage.
Through continued development of this diverse portfolio,
underpinned by consistently strong financial and operational
performance, Woodside can maximise our prospects for long-term
success against the backdrop of an uncertain energy transition. Our
strategy allows us to remain flexible and adaptable to the needs of
our customers as they determine their own decarbonisation
pathways.
We have set out Woodside's assessment of the energy transition,
and our strategy to successfully navigate it, in our 2022 Climate
Report. The report outlines the reasons for the Board's confidence
in ongoing robust demand for Woodside's products in a lower-carbon
future. In particular, the important and ongoing role that gas will
play in supporting the world's decarbonisation goals, by replacing
coal as a source of power generation and providing firming capacity
to support intermittent wind and solar.
Throughout the year we engaged and listened to our shareholders
to further understand their expectations about our climate-related
strategy and disclosures, and we've taken those into account in
preparing this year's report.
While our assessment and strategy remain consistent, we have
provided additional detail requested by shareholders on how we plan
to reduce emissions from our operations, manage our use of carbon
credits appropriately, consider future investment options in the
context of climate change, and our approach to Scope 3
emissions.
The Board recognises the ongoing strong interest of our
shareholders in Woodside's climate strategy and intends to put our
climate reporting to a non-binding, advisory vote of shareholders
at our 2024 Annual General Meeting. Subsequent shareholder votes
will be held at three-year intervals, unless there are exceptional
circumstances.
Rest assured we will continue to proactively engage with
shareholders on our reporting and management of climate-related
risks and opportunities.
Before I hand over to Meg, I would like to thank her for the
outstanding contribution she has made as Chief Executive Officer
over the past two years. Supported by her executive team, Meg's
leadership has seen Woodside reach new heights of success. Her
ability to drive day-to-day excellence while also providing the
vision and inspiration needed for Woodside's long-term success
continues to impress those inside and outside the company.
My thanks also to all of my Board colleagues, who have provided
valuable guidance and counsel throughout a very successful year for
Woodside.
And finally, to all our shareholders, the Board greatly
appreciates your ongoing support. Just under a year ago, you voted
overwhelmingly to endorse our proposed merger with BHP's petroleum
business. It was clear you shared the Board's view that the merger
provided Woodside with a golden opportunity to secure a successful
long-term future for our company.
Almost twelve months on, there is strong evidence that shows
this to be the case. We are pleased to be delivering you strong
returns from a quality and diverse global portfolio, while charting
a path for Woodside's success through the energy transition that we
are confident you will want to be a part of.
I'll now hand over to Meg. Thank you.
CEO and Managing Director Meg O'Neill
Thank you Richard. And thank you to our shareholders for
attending in person and on-line this morning.
It is a pleasure to update you on another successful year for
Woodside in which we completed our transformational merger with
BHP's petroleum business, delivered record profit and production
from our quality global portfolio, further strengthened our balance
sheet, and made good progress on our major growth projects.
Following the overwhelming shareholder support for the merger at
last year's Annual General Meeting, we worked hard to complete the
merger on 1 June and quickly brought the best of the two businesses
together. We put in place our new leadership team, refreshed our
culture and re-designed the organisation to operate more
efficiently as a global business across multiple time zones. We
also listed on the London and New York stock exchanges, increasing
our access to global capital markets. Almost one year later, we
have evolved into a truly global company with a very strong future
ahead.
I'm very proud of our teams who were able to implement this
significant change while maintaining excellent financial and
operational discipline. Beyond the impressive headline profit
numbers, we delivered strong financial returns across the board.
Operating revenue increased 142 percent to $16.8 billion, free cash
flow increased more than six-fold to $6.5 billion, and we
maintained low levels of net debt and gearing well below our target
range. We also achieved the goals we set ourselves ahead of the
merger, delivering initiatives expected to realise over $400
million per year of post-merger synergies.
Our excellent financial results were driven by a significant
increase in production to 157.7 million barrels of oil equivalent,
a result of last year's merger and strong operational reliability
of 98.5 percent at our LNG facilities. We focused our trading and
marketing activities on opportunities that maximised returns from
our expanded production.
Stepping through our producing assets in more detail, in Western
Australia we achieved steady state operations at the Pyxis and
Pluto North subsea tiebacks early in the year, adding to production
at the Pluto LNG facility. The Greater Western Flank Phase 3 and
Lambert Deep infill projects started up ahead of schedule, helping
the Karratha Gas Plant continue to operate at near full production
rates in 2022.
A highlight of the year was the successful start-up of the Pluto
to KGP Interconnector pipeline, resulting in 13 additional LNG
cargoes during the year using emerging spare capacity at KGP. The
Interconnector marks the beginning of a new chapter for our North
West Shelf project, as a processor of third party gas to extend its
operating life as legacy fields decline.
On the east coast of Australia, Woodside became a significant
supplier of gas through our acquisition of a non-operated stake in
the Bass Strait Joint Venture. When a supply crunch hit this market
in mid-2022 due to coal-fired power outages and a drop off in
renewables, Woodside played its part by delivering as many
molecules of its Bass Strait gas as possible to customers who
needed it.
Internationally, we added more than 20 million barrels of oil
equivalent from assets in the US Gulf of Mexico and Trinidad and
Tobago, which came into Woodside's production portfolio following
the merger. The contribution to our overall production from these
assets will increase significantly in 2023, based on a full 12
months of operations. This includes additional volumes from the Mad
Dog Phase 2 project, which commenced production earlier this
month.
Turning to our growth projects, the Scarborough and Pluto Train
2 projects combined are now 30 percent complete and remain on track
for targeted first LNG cargo in 2026. Highlights over the past year
include the start of fabrication on the offshore production unit
topsides, the start of pipeline manufacturing, and completion of
the first phase of the Pluto Train 2 construction accommodation
village in Karratha.
The 20-year gas sale and purchase agreement with Perdaman that
became unconditional this week was a significant milestone. Gas for
Perdaman's proposed urea plant would be primarily sourced from
Scarborough. This agreement demonstrates the benefits that
Scarborough and Pluto Train 2 can bring to Western Australia, in
this case supporting new industry and jobs in the Pilbara
region.
Of course, the Scarborough and Pluto Train 2 projects themselves
will directly create thousands of jobs locally and deliver
significant revenue to state and federal Australian Governments. We
look forward to these benefits really starting to flow across the
next couple of years as onshore and offshore construction ramps
up.
As Richard mentioned, we are expecting first oil later this year
at our Sangomar project offshore Senegal. Ten of the planned 23
wells are now complete, and commissioning of the floating
production storage and offloading facility is underway in
Singapore.
We are targeting FID-readiness in 2023 on the Trion oil project
offshore Mexico, having completed front-end engineering design
activities, issued tender packages for competitive bids and taken
forward regulatory approval submissions.
In our new energy business, we are making excellent progress on
the H2OK hydrogen project in Oklahoma. We completed front-end
engineering design in 2022, and late last year awarded contracts
for electrolysers and liquefaction units to be installed at the
facility. This has us well positioned for FID-readiness this
year.
Also this year, we are targeting a final investment decision at
our Woodside Solar project in the Pilbara, which could make an
important contribution to our plans to decarbonise the Pluto LNG
operations. This facility could supply 100 megawatts of solar
energy to Pluto LNG and other customers located near Karratha, with
potential expansion to a maximum of 500 megawatts.
The global energy security and affordability crises that
unfolded in 2022 highlighted the challenge we all face as we strive
to maintain and improve global standards of living while reducing
our emissions.
While there is considerable uncertainty over how the energy
transition may unfold in the decades ahead, we can be confident
that global energy demand will continue to grow, as the more than
one billion people without access to reliable and affordable energy
pursue the same quality of life that we enjoy.
That demand, and the role gas can play as a lower carbon source
of the energy the world needs, underpins our confidence in the
long-term strength of our business.
As I outlined in my speech to the National Press Club last week,
the natural gas produced by Woodside can support three important,
interrelated goals: providing affordable and reliable energy for
Australians; maintaining strategic partnerships and energy security
in our region; and progressing global decarbonisation.
Gas is not the only answer to achieve these goals. But it is,
and will continue to be, an essential part of the equation.
At home, gas is a flexible source of energy that provides stable
baseload power generation, smooths the transition to renewables and
is an enabler for industry and manufacturing.
And abroad, by generating electricity with around half the life
cycle emissions of coal, gas is helping keep the lights on in the
mega-cities of our most important regional partners, while also
supporting their national decarbonisation goals.
This essential, ongoing role for gas in the energy mix is why
Woodside continues to engage with the Australian Government on
policies that support affordable and reliable energy for households
and business, while supporting continued investment in new gas
supply and infrastructure.
If we don't get these settings right, there is a real risk that
energy development will stall and Australia will miss out on the
benefits. Not only in terms of energy supply and economic
development, but also the scale and pace of our renewable
ambition.
As Woodside takes forward our growth opportunities, we do so in
line with commitments under our Climate Strategy to reduce our net
equity Scope 1 and 2 emissions, and invest in the new energy
products and lower carbon services our customers require to secure
their energy needs and reduce their emissions.
As set out in our 2022 Climate Report, we are on track to meet
our 2025 and 2030 emissions reduction targets of 15% and 30%
respectively, towards an aspiration of net zero by 2050 or sooner.
In 2022, Woodside's net equity Scope 1 and 2 greenhouse gas
emissions were 11% below the starting base, which was adjusted
following the merger with BHP's petroleum business. Methane
emissions were around 0.1% of our production by volume, and during
2022 Woodside became a signatory to the Aiming for Zero Methane
Emissions initiative.
At the core of Woodside's Scope 3 emissions strategy is our
target to invest $5 billion in new energy products and lower carbon
services by 2030. We have to date spent more than $100 million in
this area, primarily on our H2OK project. Also during 2022 we
supported a number of initiatives to promote emissions reduction by
our customers and suppliers, and enhance global measurement and
reporting of Scope 3 emissions.
Climate change is one of many considerations that drive our
commitment to strong environmental, social and governance
performance. As our business continues to evolve, so do our ESG
focus areas and we will adapt accordingly through our approach to
sustainability and reporting.
The health and safety of our people is our highest priority, and
it was pleasing that across our global business in 2022 we recorded
no Tier 1 loss of primary containment process safety events,
although we did record one low-risk Tier 2 event.
Our injury performance, however, continues to be challenged. Our
total recordable injury rate of 1.80 per million hours worked
remains above our target of 1.0. We know we need to improve and we
are making progress. Our focus is on safety culture, leadership and
applying human and organisational performance principles to help us
learn and return to leading safety performance.
Partnering with First Nations communities to create positive
outcomes that leave a lasting legacy also remains one of Woodside's
foremost priorities. Highlights for the year included successful
negotiations with Ngarluma Aboriginal Corporation for an Indigenous
Land Use Agreement to support the proposed Woodside Solar Project,
and approval of the Scarborough project Cultural Heritage
Management Plan following extensive consultation with Traditional
Custodians. We continued to fund air monitoring on the Burrup
Peninsula in support of the Murujuga Rock Art Strategy, and provide
support for Murujuga's World Heritage Listing.
As Richard mentioned earlier, Woodside has an enduring
commitment to listen closely to, and learn from, Indigenous voices.
In this spirit, we have publicly declared Woodside's support for
recognising Indigenous Australians in the Constitution and
establishing a Voice.
Yesterday we announced that we have appointed Liz Westcott as
Executive Vice President Australian Operations.
Liz had a distinguished 25-year career at ExxonMobil working in
Australia, the United Kingdom and Italy before joining Energy
Australia in 2018, where her most recent role was Chief Operating
Officer.
I am delighted that Liz is joining Woodside. Her extensive
upstream experience is complemented by knowledge of the power
generation and retail sectors. I would also like to thank Mike
Price for his leadership of the Australian Operations team over the
past five months.
Before handing back to Richard, I would like to echo his
appreciation for our shareholders, and their support for the
strategy that Woodside's Board and executive leadership team are
implementing.
The faith you showed in backing last year's merger has already
been rewarded the financial strength, operational excellence and
attractive growth opportunities we have outlined today. The
opportunity now in front of us is to springboard off a very
successful 2022 and take Woodside's future prospects to another
level, building a company that will thrive through the energy
transition and deliver value to our shareholders for many years to
come.
Thank you.
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END
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