HALF-YEAR REPORT FOR PERIOD ENDED 30 JUNE
2024
ASX: WDS | NYSE: WDS | LSE:
WDS
Tuesday, 27 August
2024
High-quality business delivering
strong dividends
Financial highlights
· Net
profit after tax of $1,937 million.
· Underlying net profit after tax of $1,632
million.[1]
· Operating cash flow of $2,393 million and positive free cash
flow of $740 million.1
· Australian tax and royalty payments of
A$2,682 million.
· Liquidity of $8,479 million.1,[2]
· Determined a fully franked interim dividend of
69 US cents per share (cps), at the
top end of the payout range and representing a half-year annualised
dividend yield of 7.3%.[3]
Operational highlights
· Delivered H1 production of 89.3 MMboe (491 Mboe/d). Full year
production guidance remains unchanged.
· Reduced unit production cost to $8.3/boe ($8.8/boe in H1
2023) despite the inflationary environment.
· Achieved first oil at the Sangomar Project in June 2024.
Subsequent to the period the project achieved nameplate capacity
with gross production rates of 100,000 barrels per day.
· Continued to embed the Field Leadership Program to strengthen
our learning culture and improve safety outcomes.
· Took
a final investment decision (FID) on Lambert West, Xena-3 and
Atlantis Drill Centre 1 Expansion (DC1X).
Business highlights
· The
Scarborough Energy Project was 67% complete at the end of H1 2024,
with first LNG cargo expected in 2026.[4]
· Signed an agreement with JERA for the sale of a 15.1%
non-operated participating interest in the Scarborough Joint
Venture (SJV). Estimated total consideration for the sale is $1,400
million.[5]
· Completed the sale of a 10% non-operated participating
interest in the SJV to LNG Japan for $910 million.[6]
· Signed sale and purchase agreements (SPAs) with Korea Gas
Corporation (KOGAS) and CPC Corporation, Taiwan (CPC) for the
long-term supply of LNG to Korea and Taiwan
respectively.
· Continued to progress the Trion Project engineering,
procurement and contracting.
· Subsequent to the period, Woodside entered into two
transactions that have significant cash generation potential to
underpin long-term shareholder value.[7]
These are agreements to acquire:
o Tellurian, including its US Gulf Coast Driftwood LNG
development opportunity,
for an all-cash payment of
approximately $900 million; and
o OCI's Clean Ammonia Project in Beaumont, Texas for an
all-cash consideration of approximately $2,350 million.
Summary
Woodside reported net profit after
tax (NPAT) for the half-year of $1,937 million. Production was 89.3
MMboe (491 Mboe/d) and underlying NPAT was $1,632 million, down 14%
on the corresponding period in 2023.
The directors have determined a
fully franked interim dividend of 69 US cents per share (cps),
representing an approximately 80% payout ratio of underlying
NPAT.
Woodside Energy CEO Meg O'Neill
said the results demonstrate how Woodside's high performing base
business continues to deliver strong dividends to shareholders
while laying a foundation for future success.
"We maintained high reliability of
97.9% at our operated LNG assets and continue to manage costs
effectively in an inflationary environment.
"In the first half of 2024 we
delivered on a significant element of our strategy, achieving first
production from Sangomar, Senegal's first offshore oil project.
Production ramp-up at Sangomar has progressed well and subsequent
to the period, peak gross production rate
of 100,000 barrels per day was achieved, demonstrating Woodside's world-class project execution
capability. Sangomar will deliver enduring value for Woodside
shareholders and benefits for our partner Petrosen and the people
of Senegal.
"We also made good progress on the
Scarborough Energy Project in Western Australia, which is more than
two-thirds complete and on track for first LNG cargo in 2026. Work
on the Scarborough floating production unit passed a major
milestone with structural completion of the topsides. Pluto Train 2
site works continued with 29 of the 51 modules delivered and 25
modules set in position.
"We completed the sale of a 10%
non-operating participating interest in the Scarborough Joint
Venture (SJV) to LJ Scarborough Pty Ltd (LNG Japan) for $910
million and executed a binding sale and purchase agreement for the
sale of a further 15.1% non-operating participating interest in the
SJV to JERA.
"Long-term LNG supply agreements
were also reached with Korea Gas Corporation and with CPC
Corporation, Taiwan, underlining the importance of LNG in regional
energy security.
"Our agreement last month to
acquire Tellurian, including its US Gulf Coast Driftwood LNG
development further strengthens our LNG portfolio, complementing
our existing Pacific basin position with additional exposure in the
Atlantic basin. Woodside expects to leverage its global LNG
expertise to unlock this development and enable long-term cashflow
generation.
"In our new energy business, all
primary environmental approvals have been secured for the Hydrogen
Refueller @H2Perth, which is targeting supplying industrial
customers in Western Australia in 2025. We have also progressed
several carbon capture and storage (CCS) opportunities, including
the signing of a memorandum of understanding between the Angel CCS
Joint Venture and Yara Pilbara Fertilisers to study the use of the
technology.
"We continue to deliver on our
strategy to thrive through the energy transition whilst maintaining
our disciplined capital management. Our agreement to acquire OCI's
Clean Ammonia project in Texas positions Woodside to be an early
mover in the emerging lower carbon ammonia industry and makes a
significant contribution to delivering our Scope 3
targets.
"Above all, we are committed to
continually improving safety and have focused on
strengthening our safety culture, simplifying our
processes and improving our systems.
"As we officially mark 70 years as
an Australian company, I am proud that Woodside is facing the
future with the same spirit of innovation and determination that
our founders showed."
Financial summary
Key metrics
|
|
H1
2024
|
H1
2023
|
Change
%
|
Operating revenue
|
$ million
|
5,988
|
7,400
|
(19%)
|
EBITDA excluding
impairment[8]
|
$ million
|
4,371
|
4,888
|
(11%)
|
EBIT8
|
$ million
|
2,362
|
2,791
|
(15%)
|
Net profit after tax
(NPAT)[9],[10]
|
$ million
|
1,937
|
1,740
|
11%
|
Underlying
NPAT8
|
$ million
|
1,632
|
1,896
|
(14%)
|
Net cash from operating
activities[11]
|
$ million
|
2,393
|
2,951
|
(19%)
|
Capital
expenditure8,[12]
|
$ million
|
2,365
|
2,769
|
(15%)
|
Exploration
expenditure8,[13]
|
$ million
|
112
|
187
|
(40%)
|
Free cash
flow8,11,[14]
|
$ million
|
740
|
314
|
136%
|
Dividends distributed
|
$ million
|
1,310
|
1,519
|
(14%)
|
Interim dividend
declared
|
US cps
|
69
|
80
|
(14%)
|
|
|
|
|
|
Key ratios
|
|
|
|
|
Earnings
|
US cps
|
102.2
|
91.7
|
11%
|
Gearing8
|
%
|
13.3
|
8.2
|
5.1%
|
|
|
|
|
|
Production volumes[15],[16]
|
|
|
|
|
Gas
|
MMboe
|
60.9
|
63.5
|
(4%)
|
Liquids
|
MMboe
|
28.4
|
27.8
|
2%
|
Total
|
MMboe
|
89.3
|
91.3
|
(2%)
|
|
|
|
|
|
Production volumes per
day15
|
|
|
|
|
Gas
|
MMscf/d
|
1,907
|
1,999
|
(5%)
|
Liquids
|
Mbbl/d
|
156
|
154
|
1%
|
Total
|
Mboe/d
|
491
|
504
|
(3%)
|
|
|
|
|
|
Sales volumes16
|
|
|
|
|
Gas
|
MMboe
|
65.0
|
72.0
|
(10%)
|
Liquids
|
MMboe
|
28.9
|
26.8
|
8%
|
Total
|
MMboe
|
93.9
|
98.8
|
(5%)
|
|
|
|
|
|
Sales volumes per day
|
|
|
|
|
Gas
|
MMscf/d
|
2,035
|
2,268
|
(10%)
|
Liquids
|
Mbbl/d
|
159
|
148
|
7%
|
Total
|
Mboe/d
|
516
|
546
|
(5%)
|
|
|
|
|
|
Appendix 4D
Results for announcement to the market
More information is available on
page 44
|
|
|
|
US$
million
|
Revenue from ordinary
activities
|
Decreased
|
19%[17]
|
to
|
5,988
|
Profit from ordinary activities
after tax attributable to members
|
Increased
|
11%17
|
to
|
1,937
|
Net profit for the period
attributable to members
|
Increased
|
11%17
|
to
|
1,937
|
|
|
|
|
|
Interim dividend - fully
franked
|
69 US
cps H1 2024
|
Record date for determining
entitlements to the dividend
|
6
September 2024
|
Net profit after tax reconciliation
The following table summarises the
variance between the H1 2023 and H1 2024 results for the
contribution of each line item to NPAT.
|
US$m
|
Primary reasons for variance
|
2023 H1 reported NPAT
|
1,740
|
|
Revenue from sale of
hydrocarbons
|
|
|
Price
|
(1,077)
|
Lower average realised
prices.
|
Volume
|
(364)
|
Fewer third-party LNG trades
classified as revenue and natural field decline.
|
Other operating revenue
|
29
|
Increase in processing and
services revenue.
|
Cost of sales
|
600
|
Lower royalties, trading costs and
depreciation expense in H1 2024 and Pluto turnaround activities in
the prior period.
|
Other income
|
181
|
Gain on SJV sell-down to LNG
Japan.
|
Other expenses
|
134
|
Lower fair value losses on
embedded derivatives.
|
Impairment losses
|
68
|
Pre-tax impairment of Pyrenees
recognised in prior period.
|
Income tax and PRRT
expense
|
724
|
Recognition of the Trion deferred
tax asset (DTA) offset by derecognition of the Pluto PRRT DTA, both
not present in the current period.
H1 2024 includes the first-time
recognition of a net DTA for the Sangomar Project.
|
Other
|
(98)
|
|
2024 H1 reported NPAT
|
1,937
|
|
2024 H1 NPAT
adjustments
|
(305)
|
Adjustment for the recognition of
the Sangomar DTA.
|
2024 H1 underlying NPAT
|
1,632
|
|
Capital management
Woodside's capital management
framework provides us with the flexibility to optimise value and
shareholder returns delivered from our portfolio.
Interim dividend and dividend reinvestment
plan
A 2024 fully franked interim
dividend of 69 US cps has been determined, representing a half-year
annualised dividend yield of 7.3%.[18]
The total amount of the interim dividend payment is $1,310 million
which represents approximately 80% of underlying NPAT for the first
half of 2024.[19]
The dividend reinvestment plan
(DRP) remains suspended.
Liquidity and Balance sheet
In H1 2024, Woodside
generated $2,393 million
of cash flow from operating activities and
delivered positive free cash flow of $740
million.19,[20]
Woodside increased its standby
debt facilities from $6,050 million to $6,500 million. Liquidity at
the end of the period was $8,479 million and Woodside's drawn debt
at the end of the period was $5,850 million.
Woodside entered into a $1,000
million 10-year loan with the Japan Bank for International
Cooperation (JBIC) to support the Scarborough Energy Project which
was available for drawdown from the end of June 2024. In addition,
Woodside entered into a $450 million 10-year loan from commercial
banks for general corporate purposes. Subsequent to the period,
$1,550 million of undrawn facilities were cancelled. This
cancellation has the effect of reducing our liquidity by $1,550
million. As part of active debt management, Woodside continues to
review options to further access the debt market.
Net debt at the end of the period
increased 67% from H1 2023 to $5,388 million, in line with planned
capital expenditure.19 Woodside's gearing at the
end of the first half was 13.3%, within our target range of
10-20%.19
As a result of the recent
announcements to acquire Tellurian, including its Driftwood LNG
development, and OCI's Clean Ammonia Project, Woodside expects its
gearing to be above the top end of the target range for a period of
time as the balance sheet is managed through the investment
cycle.
Woodside's commitment to an
investment grade credit rating remains unchanged and supports our
aim of providing sustainable returns to shareholders and investing
in future growth opportunities, in accordance with the capital
allocation framework.
Commodity price risk management
Woodside hedges to protect the
balance sheet against downside commodity price risk, particularly
during periods of high capital expenditure.
As at 30 June 2024, Woodside has
placed oil price hedges for:
· approximately 29.3 MMboe of 2024 production at an average
price of $75.6 per barrel, of which approximately 14.4 MMboe has
been delivered; and
· a
further 15 MMboe of 2025 production at an average price of
approximately $81.2 per barrel.
Woodside has also placed a number
of hedges for Corpus Christi LNG volumes to protect against
downside commodity price risk. These hedges are Henry Hub and Title
Transfer Facility (TTF) commodity swaps. Approximately 70% of
Corpus Christi volumes for the remainder of 2024, 48% of 2025 and
9% of 2026 volumes have reduced pricing risk as a result of hedging
activities.
Australian operations
Pluto LNG
Pluto LNG is a gas processing
facility in the Pilbara region of Western Australia, comprising an
offshore platform and one onshore LNG processing train.
Woodside's share of production in
H1 2024 was 26.9 MMboe. This was a 15% increase compared with H1
2023 which was impacted by planned turnaround activities, partially
offset by reduced reliability following an offshore trip and a
separate electrical fault onshore in H1 2024.
Woodside took FID for the Xena-3
well to support ongoing production from the project and started-up
the produced water handling unit at the Pluto A
platform.
Drilling of the PLA-08 production
well commenced in June 2024.
Approvals were also granted to
extend Pluto gas flows through the Pluto-Karratha Gas Plant
Interconnector (Interconnector) from April 2024 to approximately
December 2025, enabling continued acceleration of LNG and domestic
gas production. The Interconnector generated incremental revenue of
$315 million in H1 2024.
Woodside is operator and holds a
90% participating interest.
Woodside Solar
Woodside is progressing a potential
opportunity to reduce gross Scope 1 greenhouse gas emissions at
Pluto LNG by utilising solar energy from the proposed Woodside
Solar Project.
In H1 2024, Woodside continued to work closely
with the Western Australian Government to progress its plans to
develop common user transmission infrastructure that will be
required to transmit renewable energy from the proposed solar
facility to Pluto LNG via the North-West Interconnected
System.
Woodside Solar FID and first solar energy
import timing are subject to securing access to this new power
transmission infrastructure and finalising associated commercial
agreements.
North West Shelf Project
The North West Shelf Project (NWS)
consists of three offshore platforms and the onshore Karratha Gas
Plant (KGP) which includes five onshore LNG processing trains and
two domestic gas trains.
Woodside's share of production in
H1 2024 was 19.6 MMboe. This was a 14% decrease compared with H1
2023 due to planned offshore maintenance and natural field decline.
In H1 2024, 6.0 MMboe of Pluto gas was processed at KGP
through the Interconnector.
Woodside continues to look for
opportunities to harness value from our late-life assets. In H1
2024, the NWS Joint Venture participants took FID on the Lambert
West Project which will support ongoing production from NWS.
Discussions continue between the NWS Joint Venture participants and
other resource owners for the processing of third-party gas to
utilise ullage at KGP. Processing of Waitsia gas continued and is
expected to ramp up when the Waitsia Stage 2 facility commences
production, which is expected in late 2024.
As the NWS celebrates 40 years of
operations, the project is entering a period of production decline.
KGP currently has processing ullage due to natural field decline
and the current level of third-party gas processing demand. To
manage both operating costs and emissions, NWS is preparing to take
one LNG train offline between late 2024 and mid-2025.
State and Commonwealth regulatory
approval processes are progressing for the North West Shelf Project
Extension, which will support long-term operations and processing
of future third-party gas resources at KGP.
Woodside is operator and holds a
33.33% participating interest.
Wheatstone and Julimar-Brunello
Wheatstone is an LNG processing
facility near Onslow, Western Australia, comprising an offshore
production platform and two onshore LNG production trains. It
processes gas from several offshore gas fields including Julimar
and Brunello.
Woodside's share of Wheatstone
production in H1 2024 was 5.8 MMboe. This was a 12% decrease
compared with H1 2023, due to unplanned outages impacting the
Julimar subsea production system and the Wheatstone facility
respectively.
Woodside is operator and holds a
65% participating interest in the Julimar-Brunello
fields.
Woodside holds a 13% non-operating
participating interest in the Wheatstone Project.
Bass Strait
Bass Strait is located in the
south east of Australia and produces oil and gas through a network
of offshore platforms, pipelines and onshore processing facilities.
The Bass Strait assets include the Gippsland Basin Joint Venture
(GBJV) and the Kipper Unit Joint Venture (KUJV).
Woodside's share of production
from Bass Strait was 8.5 MMboe in H1 2024, a 22% decrease from
H1 2023 predominantly due to lower
domestic gas market demand, offshore maintenance, and reduced crude
oil production due to field decline. All of Woodside's share
of the gas produced from Bass Strait is supplied into the eastern
Australian domestic gas market.
The GBJV is optimising facilities
through the Gippsland Asset Streamlining project as production
rates from the Bass Strait decline. As planned, production from the
West Kingfish and Halibut oil platforms ceased in March and April
2024 respectively.
The Kipper Compression Project
offshore modules have been successfully installed. The project is
planning for startup in Q3 2024, to enable continued supply of gas
to the domestic market.
Woodside holds a 50% non-operating
participating interest in the GBJV and a 32.5% non-operating
participating interest in the KUJV.
Other Australian oil and gas assets
Woodside operates three FPSO
facilities off the north west coast of Western Australia. These are
the Okha FPSO (Woodside participating interest: 50%), Ngujima-Yin
FPSO (Woodside participating interest: 60%) and Pyrenees FPSO
(Woodside participating interest: 40% in WA-43-L and 71.4% in
WA-42-L).
Woodside's share of production
from the FPSO assets was 3.0 MMboe in H1 2024. This was a 3%
decrease from H1 2023 primarily due to the planned five-yearly
Pyrenees FPSO maintenance turnaround and the Pyrenees shut-in
following a produced-water leak identified subsea at the facility.
Production at Pyrenees recommenced in June 2024 and the
produced-water leak has been rectified.
Macedon (Woodside participating
interest: 71.4%), also operated by Woodside, is a gas project
located near Onslow, Western Australia which produces pipeline gas
for the Western Australian domestic gas market.
Woodside's share of production
from Macedon was 3.9 MMboe, down from 4.1 MMboe in H1 2023. The
Macedon facility delivered approximately 11% of the Western
Australian domestic gas market supply in H1 2024.
International operations
Sangomar
The Sangomar Field Development Phase 1 is a
deepwater project including a stand-alone FPSO facility moored
approximately 100 kilometres offshore Senegal and subsea
infrastructure that is designed to allow subsequent development
phases.
First oil was achieved in June 2024, marking
the delivery of Senegal's first offshore oil project. Woodside's
share of production from Sangomar in H1 2024 was 0.5 MMboe.
Subsequent to the period, nine production
wells have come online, and the project successfully achieved peak
gross rate of 100,000 barrels per day. Commissioning activities are
expected to continue through 2024.
Sales of the initial Sangomar crude cargoes
have been finalised, with interest received from European and Asian
refiners. Subsequent to the period, the first two cargoes were
loaded and delivered to Europe and a third cargo was loaded for
delivery to Asia.
The project was 98% complete at the end of H1
2024. The development drilling program continues with 22 of the 23
wells drilled and completed.[21] An additional
24th well approved by the Rufisque, Sangomar and Sangomar Deep
(RSSD) Joint Venture was also drilled and completed.
Woodside has filed action with the High Court
of Dakar disputing a tax assessment from the Senegalese tax
authorities. The majority of the tax claims relate to the
application of an exemption that applied during the project
development phase.
Woodside is operator and has an 82%
participating interest in the project.
Shenzi
Shenzi is a conventional oil and gas field
developed through a tension leg platform located in the US Gulf of
Mexico. Woodside's share of production in H1 2024 was 5.2 MMboe.
This was a 7% decrease compared with H1 2023 due to natural field
decline and maintenance activity. Woodside is operator and holds a
72% participating interest.
Atlantis
Atlantis is a conventional oil and gas
development and is one of the largest producing fields in the US
Gulf of Mexico. The Atlantis development includes a
semi-submersible facility with 28 active producer wells and three
water injector wells.
Woodside's share of production in H1 2024 was
5.1 MMboe. This was a 19% decrease compared with H1 2023 due to
planned turnaround activity.
In H1 2024, the first horizontal well in the
field was successfully completed, potentially unlocking future
infill opportunities for the asset. An FID was taken at DC1X, which
will be a two-well tie back to the Atlantis facility through the
existing DC1 manifold in the southwest of the field. Woodside holds
a 44% non-operating participating interest.
Mad Dog
Mad Dog is a conventional oil and gas
development located in the US Gulf of Mexico. Mad Dog Phase 2 is a
development of the southern flank of the Mad Dog field though the
new Argos floating production facility.
Woodside's share of production in H1 2024 was
6.0 MMboe. This was a 122% increase compared with H1 2023 primarily
due to a full period of production from Mad Dog Phase 2.
The Argos facility continued to safely and
systematically ramp up production in H1 2024, following completion
of the riser flex joint remediation, and achieved peak production
of approximately 130 Mbbl/d. The first water injection at the Argos
platform was achieved in April 2024. Woodside holds a 23.9%
non-operating participating interest.
Greater Angostura
Greater Angostura includes the Angostura and
Ruby conventional oil and gas fields, located offshore Trinidad and
Tobago. The development includes an offshore central processing
facility and five wellhead platforms.
Woodside's share of production in H1 2024 was
4.5 MMboe. This was a 20% decrease compared with H1 2023 due to the
planned maintenance activity.
In H1 2024, Woodside continued to pursue
opportunities to maximise value and safely optimise production and
operating costs. A planned facility maintenance turnaround was
completed in June 2024.
Woodside is operator of both fields and holds
a 45% participating interest in the Angostura field and a 68.5%
participating interest in the Ruby field.
Marketing and Trading
The marketing segment's profit
before tax and net finance costs in H1 2024 was $218 million. This
reflected the optimisation activities and incremental value
generated through the marketing, trading and shipping of Woodside's
oil and gas and through third-party purchased volumes.
In H1 2024, Woodside signed SPAs
with KOGAS and CPC for the long-term supply of LNG to Korea and
Taiwan respectively. The KOGAS SPA is for the supply of
approximately 0.5 Mtpa of LNG from 2026, for a period of 10.5
years.
The CPC SPA is for the supply of
approximately 6 million tonnes of LNG over 10 years, from July
2024. Under the CPC SPA, Woodside may also deliver approximately
8.4 million tonnes of LNG for a further 10 years, from 2034 to
2043.[22]
LNG delivered under both SPAs will
be sourced from volumes across Woodside's global
portfolio.
In Western Australia, Woodside
executed 14 PJ of sales for delivery into the domestic market from
May to the end of 2024. Woodside continues to support the Western
Australian domestic market by offering additional supply for 2025,
2026 and 2027.
A record quantity of trucked LNG
(approximately 850 TJ) was delivered in H1 2024 to customers in
northern Western Australia. Since the commencement of operations at
the Pluto LNG Truck Loading Facility in 2019, Woodside has
delivered more than 2,000 trailers of LNG (approximately 2,240 TJ),
offering a lower-carbon alternative to
diesel.[23]
In the east coast of Australia,
Woodside was granted an exemption under the applicable domestic gas
price cap legislation. The exemption provides Woodside the
opportunity to increase delivery to the domestic market by more
than 260 PJ (100% share) through to 2033 if needed. Woodside
conducted an expression of interest for Bass Strait supply for 2025
and 2026 totalling 50 PJ and is progressing towards final offers in
line with the conditions set under the Mandatory Code of
Conduct.
In Trinidad and Tobago,
incremental gas production from the Angostura field was placed
under the existing gas SPA with the National Gas Company of
Trinidad and Tobago (NGC). This ongoing optimisation maximises our
production efficiency and provides a reliable supply of natural gas
to meet growing customer demand.
Woodside's marketing and trading
portfolio is supported by our shipping capacity, which includes
seven vessels under long-term charter and multiple vessels on
short-term charter. A new 174,000m3 long-term charter
LNG vessel, the Woodside Scarlet Ibis, was delivered in June 2024
and the vessel's efficiency will support efforts to lower the
carbon intensity of Woodside's LNG deliveries.
Projects
Scarborough Energy Project
The Scarborough gas field is located in the
Carnarvon basin, approximately 375 km off the coast of Western
Australia.
The development includes installation of a
floating production unit (FPU) with eight wells drilled in the
initial phase and 13 wells drilled over the life of the Scarborough
field. Expansion of the Pluto LNG facility includes construction of
a second LNG train (Pluto Train 2), installation of additional
domestic gas processing facilities and supporting infrastructure,
and modifications to Pluto Train 1 to allow it to process
Scarborough gas.
The project was 67% complete at the end of H1
2024.[24] Pluto Train 2
module delivery and site works progressed and at the end of H1
2024, 29 modules were delivered to site, with 25 modules set in
position. Site integration activities continue to ramp up and are
expected to peak in H2 2024.
The FPU reached a major milestone, achieving
structural completion of the topsides. The monoethylene glycol
(MEG) module and living quarters were installed on the topsides
and, subsequent to the period, the hull entered its second dry
dock.
Trunkline installation is more than 50%
complete and the pipe diameter has transitioned from 36" to 32".
All crossings of other pipelines are complete.
Installation and testing of the three subsea
flowlines has been successfully completed. The drilling campaign
commenced with the installation of conductors for all eight wells.
Two development wells have been drilled, with one well completed
and the other to be completed as part of the forward campaign.
Reservoir quality was in line with
expectations.
All major engineering reviews for
Pluto Train 1 modifications have been completed and approximately
80% of materials and equipment have been ordered. Contractor
mobilisation to the Thailand module yard and Pluto site
commenced.
Subsequent to the period, the
Integrated Remote Operating Centre building works were completed
with fit out now underway.
In February 2024, Woodside signed
an agreement with JERA, as part of a broader strategic
relationship, for the sale of a 15.1% non-operated participating
interest in the SJV. Estimated total consideration for the sale is
$1,400 million, subject to completion which is targeted for the
second half of 2024.[25]
In March 2024, Woodside completed
the sale of a 10% non-operated participating interest in the SJV to
LNG Japan for $910 million.[26]
Woodside is operator and holds a
90% participating interest in Scarborough and a 51% participating
interest in Pluto Train 2.[27]
Trion
Trion is an oil development located in the
Gulf of Mexico, approximately 180 km off the Mexican coastline and
30 km south of the United States/Mexico maritime border. The Trion
project includes a semi-submersible FPU capable of producing and
transferring 100,000 barrels of oil per day to a floating storage
and offloading (FSO) vessel. Oil from the FSO is expected to be
exported to the market, with excess gas transferred to existing
offshore gas export infrastructure.
The project progressed engineering,
procurement and contracting (EPC) activities in H1 2024. The FPU
detailed engineering achieved key milestones including the
completion of integrated model reviews of the hull and topsides
with key vendor data and formal risk assessments of the facility's
design and operability. Technical maturity in engineering has
enabled the FPU EPC contractor to start procurement of
equipment.
Model testing was completed as part of FSO
front-end engineering design (FEED). Other key achievements include
completion of hull and disconnectable turret module model reviews
and the hazards and operability assessment.
Subsea delivery also advanced with the start
of manufacturing activities.
Key contracts were awarded
for subsea marine installation, FPU dry transportation, gas
gathering line pipe and drilling equipment and
consumables.
Woodside is currently carrying
Pemex's portion of development capital expenditure (approximately
$460 million post FID) and Pemex is not expected to contribute to
cash calls until 2025.
Woodside is targeting first oil in
2028. Woodside is operator and holds a 60% participating
interest in the project.
Driftwood LNG
Subsequent to the period, Woodside entered
into a definitive agreement to acquire all issued and outstanding
common stock of Tellurian including its owned and operated US Gulf
Coast Driftwood LNG development opportunity.
Driftwood LNG is a fully permitted, pre-FID
development opportunity located near Lake Charles, Louisiana. The
current development plan comprises five LNG trains through four
phases, with a total permitted capacity of 27.6
Mtpa. Once operating, the Driftwood LNG development will increase
Woodside's LNG portfolio, complementing the significant Pacific
basin exposure with additional Atlantic basin
exposure.
The transaction remains subject to
approvals and conditions precedent, with completion targeted in Q4
2024. If completed, Woodside is targeting FID readiness for Phase 1
of the development opportunity from Q1 2025.
Decommissioning
Woodside continued execution of planned
decommissioning activities in H1 2024, spending approximately $325
million across our portfolio.
At Enfield, the final two of 18 xmas trees
were removed and wellhead severance activities commenced.
Deconstruction of the Nganhurra riser turret mooring (RTM) was
completed at the Australian Marine Complex, enabling more than 95%
of the RTM to be recycled or reused.
At Griffin, all rigid piping has
been recovered and wellhead severance activities have been
completed.
The Transocean Endurance drill rig mobilised
to the Stybarrow field and commenced the ten well plug and
abandonment (P&A) campaign.
At Bass Strait, the GBJV continued to progress
significant decommissioning activity including ongoing execution of
P&A of platform wells and commenced execution of the P&A of
two subsea wells. In addition, FEED for the removal of platforms no
longer in use has progressed.
Exploration and Development
Calypso
Calypso is located approximately
220 km off the coast of Trinidad in 2,100m water depth. The
resource comprises several gas discoveries in Block 23(a) and Block
TTDAA 14. The development is located in a region with existing
infrastructure and a favourable demand outlook.
In H1 2024, Woodside continued
pre-FEED engineering studies to mature the technical definition and
cost estimate for the deepwater infield host. Marketing and
commercial discussions continue with key stakeholders to evaluate
options to monetise the resource.
Woodside is operator and holds a
70% participating interest.
Browse
The Browse development comprises the
Calliance, Brecknock and Torosa gas and condensate fields located
approximately 425 km north of Broome, Western Australia.
Key work scopes continued in support of the
proposed Browse to NWS Project development, including engagement
with regulators on environmental and regulatory approvals and
progressing commercial discussions. A carbon capture and storage
solution has been incorporated into the offshore infrastructure,
designed to sequester the majority of Browse reservoir
CO2. In June 2024, a Declaration of an Identified
Greenhouse Gas Storage Formation was made by the Commonwealth
Government over the Calliance Storage Formation within the G-8-AP
Greenhouse Gas Assessment Permit.
Woodside is operator and holds a 30.6%
participating interest.
Liard
The Liard field is an unconventional gas field
located in British Columbia, Canada. Woodside holds a 50%
non-operating participating interest.
Sunrise
The Sunrise development comprises the Sunrise
and Troubadour gas and condensate fields, located approximately 450
km north-west of Darwin and 150 km south of Timor-Leste.
The Sunrise Joint Venture participants
continued to negotiate a new Production Sharing Contract, Petroleum
Mining Code and fiscal regime with the Australian and Timor-Leste
Governments in H1 2024. The Greater Sunrise Concept Study commenced
in April 2024, with local content and socio-economic data gathering
and engagement with potential site owners planned for H2
2024.
Woodside is operator and holds a 33.44%
participating interest.
Exploration
Woodside continued to build its position in
the US Gulf of Mexico during the period, acquiring 18 leases in
Lease Sale 261 in the central and western Gulf of Mexico areas
within the highly contested Paleogene trends. Woodside also
participated in the Corvus well (non-operated) in the Gulf of
Mexico which completed drilling in March 2024. The well did not
encounter commercial hydrocarbons and detailed analysis of well
results is ongoing.
In Congo, Woodside is participating in the
Niamou Marine-1 well (non-operated) which is currently
drilling.
Woodside also continued to optimise its
exploration portfolio, exiting blocks that are no longer considered
prospective. This included a decision to exit Block 2 in the
offshore Herodotus basin in Egypt and completing all formal exit
activities for permit WA-356-P in Australia and the Carlisle Bay
Block in Barbados.
New energy
Beaumont Clean Ammonia Project
Subsequent to the period, Woodside entered
into a binding agreement to acquire 100% of OCI Clean Ammonia Holding B.V. and its lower carbon ammonia project in
Beaumont, Texas. This acquisition provides Woodside with an
early-mover advantage in the growing lower carbon ammonia
market.
Phase 1 of the project, which is
expected to exceed Woodside's capital allocation target for new
energy projects has a design capacity of 1.1 Mtpa and is under
construction.
The transaction is subject to an
OCI shareholder vote and satisfaction of customary conditions
precedent, with completion targeted in H2 2024. If completed,
Woodside is targeting production of first ammonia from 2025 and
lower carbon ammonia from 2026 following commencement of CCS
operations.[28]
H2OK
H2OK is a proposed liquid hydrogen project in Ardmore, Oklahoma,
and is expected to produce up to 60 tonnes per
day of liquid hydrogen.
In H1 2024, Woodside continued to progress
discussions with potential offtakers on pricing and
volumes. Woodside also provided comments on the proposed 45V
Clean Hydrogen Production Tax Credit guidelines issued by the
United States Department of Treasury and the Internal Revenue
Service.
Hydrogen Refueller @H2Perth
The Hydrogen Refueller @H2Perth is a proposed
self-contained hydrogen production, storage and refuelling
station.
All primary environmental approvals have been
secured for the project. Woodside awarded the major services
contract which includes detailed engineering, construction,
commissioning and startup work scopes to enable progression towards
ready for start-up.
Woodside is targeting supply of hydrogen to
customers in 2025.
H2Perth
Woodside has changed the H2Perth concept from
ammonia and hydrogen production to liquid hydrogen only, following
feedback from potential customers. In supporting the opportunity,
Woodside progressed engineering and technology studies for
large-scale liquefied hydrogen production.
H2TAS
H2TAS is a proposed renewable ammonia and hydrogen production facility to be
located in Tasmania.
Subsequent to the period, Woodside
withdrew environmental applications submitted under the
Environmental Management and Pollution Control Act 1994 and
Environment Protection and Biodiversity Conservation Act 1999.
Woodside continues to assess the viability of this potential
opportunity.
Southern Green Hydrogen
Subsequent to the period, Woodside ceased
discussions with Meridian Energy Limited, Mitsui & Co.,Ltd and
Murihiku Regeneration, representing Ngāi Tahu, regarding a
potential collaboration with respect to the Southern Green Hydrogen
Project.
Carbon solutions
Carbon capture and storage
(CCS)
Woodside is progressing several CCS
opportunities in Australia, including Angel CCS (as operator),
South East Australia (SEA) CCS (non-operator) and
Bonaparte CCS (non-operator).
The proposed Angel CCS Project
progressed engineering and marketing activities to support FEED
entry. In April 2024, the Angel CCS Joint Venture announced a
non-binding
memorandum of understanding with Yara
Pilbara Fertilisers Pty Ltd (Yara) to study the feasibility of
using CCS to decarbonise Yara's existing operations near Karratha
in Western Australia. Terrestrial ecological surveys have been
completed and heritage surveys are scheduled for August
2024.
The Bonaparte CCS Joint Venture progressed
appraisal activities in the G-7-AP Assessment Permit Area, which
included the acquisition of the West Peron Marine 3D Seismic
Survey.
The SEA CCS continued to progress engineering
studies.
Carbon credits portfolio
Woodside acquires carbon credits through both
market purchases and the development of its own carbon origination
projects.
During H1 2024, Woodside began planting
activities on approximately 4,900 hectares of land at
Woodside-owned properties as part of our Native Reforestation
Project. The full-year program is forecast to plant over 3.2
million mixed biodiverse seedlings. These activities were 40%
complete by the end of H1 2024. Subsequent to the period, Woodside
signed an agreement to fund the reforestation of 5,000 hectares of
land in the Chaco region in Paraguay. The Woodside portion of the
project is expected to generate approximately 1.6 million carbon
credits over 40 years.
Climate and Sustainability
Climate
Woodside released its Climate Transition
Action Plan and 2023 Progress Report (CTAP) on 27 February 2024.
The CTAP was put to a non-binding advisory vote of shareholders at
the 2024 Annual General Meeting (AGM) on 24 April 2024 and received
a vote of 58.36% against the resolution. All other Board proposed
resolutions were approved including the Remuneration Report and
Director elections.
Management is reflecting on the results of the
CTAP vote and is engaging with investors to seek
feedback.
In January 2024, Woodside became the first
Australian company to join the Oil and Gas Methane Partnership
(OGMP2.0) to voluntarily improve the accuracy and transparency of
methane emissions reporting.
Woodside also committed to providing $12.5
million over a period of five years to fund the creation of the
Woodside-Rice Decarbonisation Accelerator. This collaboration with
Rice University in the United States aims to bring breakthrough
decarbonisation technology to market.
Health, Safety and Environment
Woodside experienced two Tier 2 process safety
events in H1 2024. The contributing factors to these events are
understood, with corrective actions identified. Woodside is
strengthening process safety management through
an expanded company-wide Process Safety Critical Role competency
development program in 2024. Woodside is targeting a 95%
conformance to training and assessment requirements for senior
roles.
At 30 June 2024, the year-to-date
total recordable injury rate was 2.27 per million work hours
compared with 1.86 recorded for full-year 2023. There were no
fatalities or permanent injuries recorded in H1 2024.
To improve safety performance
Woodside is focusing on simplifying safety processes, implementing
improvements around safe hardware and engineering systems, and
promoting a learning culture through implementation of its Field
Leadership Program.
Environmental performance remained strong in
H1 2024, with no events leading to any significant environmental
impacts.
Supporting local suppliers
Woodside continues to identify opportunities
in Australia to award contracts to local and Indigenous
suppliers.
In H1 2024, 16 new local subcontracts were
awarded in the Pilbara region for Pluto Train 2.
In Sangomar, Woodside has progressed work with
key contractors to provide opportunities for Senegalese people and
suppliers, whilst meeting the requirements of in-country local
content legislation. Woodside has also continued to grow local
contracting opportunities in Trinidad and Tobago and the Gulf of
Mexico.
In support of the Trion Project's National
Content program in Mexico, Woodside sponsored a second group of 33
small-to-medium-sized suppliers from the Tamaulipas state to
participate in a program called BlueWave. The program supports the
development of suppliers and provides an opportunity to assess
capabilities according to global business standards.
Communities
Woodside released its 2023 Social Contribution
Impact Report in April 2024, outlining its total global social
contribution spend of A$33.3 million. This report was complemented
by the North West Community Development Report which highlights the
significant contribution Woodside continues to make in the Pilbara
region of Western Australia as operator of the Karratha Gas Plant,
Pluto LNG and Scarborough Energy Project.
Subsequent to the period, Woodside released
its third Reconciliation Action Plan 2021 - 2025 (RAP) Report. The
report reflects on Woodside's progress against the four pillars
outlined in the RAP, namely:
· Respect for
Culture and Heritage;
· Economic
Participation;
· Capability and
Capacity; and
· Stronger
Communities.
The RAP demonstrates that although Woodside
has made significant advancements towards our stated targets,
continued focus is needed to achieve our goals relevant to the four
pillars.
Principal risks and uncertainties
There are several risk factors or
uncertainties that could result in a material effect on the
company's results over the next six months. These risks and
uncertainties may arise from Woodside's activities globally,
including in connection with its operated (or non-operated) assets,
and third parties engaged through the value chain.
Information on Woodside's risks and how they
are managed can be found on pages 40-47 of the Annual Report 2023.
There have been no material changes to the risk factors described
in the Annual Report 2023 since the date of that report, but risk
factors have been retitled and recategorised to align with
Woodside's Risk Appetite Statement.
Key changes to the categorisation include the
Health and Safety and Environment risk factors being split from
Operations and Climate Change, to provide greater visibility of
topics most relevant to our business activities and stakeholders
and to reflect where our tolerance for uncertainty is low.
Additionally, Finance and Market has been split into Finance
Management and Commercial and Market to acknowledge a difference in
risk appetite. The risks are summarised below.
Health and safety
|
Our business is subject to risks
related to safety or major hazard events in connection with our
activities or facilities which may include unanticipated or
unforeseeable adverse events that impact our ability to respond,
manage and recover from such events.
|
Environment
|
Risks associated with major hazard
events in connection with our activities or facilities, including
potential incidents resulting in significant loss of hydrocarbon.
We work to avoid incidents and prevent harm to the environment, by
integrating environmental management into our activities. We are
also subject to risks associated with progressing biodiversity
positive outcomes and emission reductions in a timely manner,
consistent with regulatory and stakeholder
expectations.
|
People and culture
|
Risks associated with the ability
to attract, retain, develop and motivate key employees to succeed
and safeguard both current or future performance and
growth.
|
Social integrity
|
Risks associated with actual or
perceived deviation from social or business expectations of ethical
behaviour (including breaches of laws or regulations) and social
responsibility (including environmental impact and community
contribution), particularly as these expectations evolve and as
Woodside expands its global operations.
|
Strategy and climate change
|
The global response to climate
change is changing the way the world produces and consumes energy.
Our strategy requires us to take risk-based decisions and seek
opportunities to continue to deliver energy solutions. The complex
and pervasive nature of climate change means transition risks are
interconnected with and may amplify other risks. Additionally, the
inherent uncertainty of potential societal responses to climate
change may create a systemic risk to the global economy. Climate
change may also create significant physical risks, such as
increased frequency and severity of storms, wildfires, floods and
other climatic events, as well as chronic shifts in temperature and
precipitation patterns.
|
Growth
|
Risks associated with delivery of
both major and complex multi-year execution project activities and
transactions (including acquisitions and divestments) across
multiple global locations, including a reliance on third parties
for materials, products, and services.
|
Production and operations
|
Due to the nature of our
operations, Woodside and neighbouring communities are potentially
exposed to a broad range of risks. This is a result of factors such
as the geographical range, operational diversity and technical
complexity of our assets. These types of risks include health and
safety; commercial; regulation; and reserves and resources
estimates.
|
Financial management
|
Risks associated with interest
rate, commodity price and foreign exchange fluctuations and
inflation.
|
Commercial and market
|
Risks associated with the ability
to capture value whether markets are stable or volatile.
|
Technology, innovation and systems
|
Risks associated with adopting and
implementing new technologies, whilst safeguarding our digital
information and landscape (including from cyber threats) across our
value chain.
|
Directors' Report
The directors of Woodside Energy Group Ltd
present their report (including the review of operations of
Woodside Energy Group Ltd and its controlled entities (Group) set
out on pages 1 - 16 which forms part of this report) together with
the Half-Year Financial Statements of the Group.
Board of directors
The names of directors in office during or
since the end of the 2024 half-year are as follows:
Mr Richard Goyder, AO (Chair)
|
Ms Meg O'Neill (CEO and Managing
Director)
|
Mr Larry Archibald
|
Mr Ashok Belani (appointed 29 January
2024)
|
Mr Arnaud Breuillac
|
Ms Swee Chen Goh
|
Mr Ian Macfarlane
|
Ms Angela Minas
|
Mr Tony O'Neill (appointed 3 June
2024)
|
Ms Ann Pickard
|
Mr Ben Wyatt
|
|
Mr Frank Cooper, AO (retired 24 April
2024)
|
Mr Gene Tilbrook (retired 28 February
2024)
|
Change of Group Company Secretary
Mr Warren Baillie ceased to be Group Company
Secretary on 27 August 2024 and the Board appointed Mr Damien Gare
as Group Company Secretary, effective 27 August 2024.
Rounding of amounts
Woodside Energy Group Ltd is an entity to
which the Australian Securities and Investments Commission (ASIC)
Corporations (Rounding in Financial/Directors' Reports) Instrument
2016/191 (ASIC Instrument 2016/191) applies. Amounts in this report
have been rounded in accordance with ASIC Instrument 2016/191. This
means that amounts contained in this report have been rounded to
the nearest million dollars, unless otherwise stated.
Auditor's Independence Declaration
The Auditor's Independence Declaration, as
required under section 307C of the Corporations Act 2001, is set
out on page 18 and forms part of this report.
Signed in accordance with a resolution of the
directors.
R J Goyder, AO
Chair
Perth, Western Australia
27 August 2024
Auditor's Independence Declaration to the Directors of
Woodside Energy Group Ltd
Auditor's Independence
Declaration
As lead auditor for the review of Woodside
Energy Group Ltd for the half-year ended 30 June 2024, I declare
that to the best of my knowledge and belief, there have
been:
(a) no contraventions
of the auditor independence requirements of the Corporations Act 2001 in relation to
the review; and
(b) no contraventions
of any applicable code of professional conduct in relation to the
review.
This declaration is in respect of Woodside
Energy Group Ltd and the entities it controlled during the
period.
N M Henry
|
Perth
|
Partner
PricewaterhouseCoopers
|
27
August 2024
|
PricewaterhouseCoopers, ABN 52 780 433
757
Brookfield Place, Level 15, 125 St Georges
Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999,
www.pwc.com.au
Liability limited by a scheme approved under
Professional Standards Legislation.
|
|
HALF-YEAR FINANCIAL
STATEMENTS
for the
half-year ended 30 June 2024
|
|
HALF-YEAR FINANCIAL STATEMENTS
CONTENTS
CONDENSED CONSOLIDATED INCOME
STATEMENT
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
NOTES
TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
A. Earnings for the period
A.1
Segment revenue and expenses
A.2
Finance costs
A.3
Dividends paid and proposed
A.4
Earnings per share
A.5
Taxes
B. Production and growth assets
B.1
Exploration and evaluation
B.2
Oil and gas properties
B.3
Goodwill
B.4
Disposal of assets
C. Debt and capital
C.1
Contributed equity
C.2
Interest-bearing liabilities and financing facilities
D. Other assets and liabilities
D.1
Segment assets and liabilities
D.2
Provisions
D.3
Other financial assets and liabilities
E. Other items
E.1
Contingent liabilities and assets
E.2
Changes to the composition of the Group
E.3
New standards and interpretations
E.4
Events after the end of the reporting period
DIRECTORS'
DECLARATION
INDEPENDENT REVIEW
REPORT
Significant changes in the current reporting
period
The financial performance and
position of the Group were particularly affected by the following
events and transactions during the reporting period:
·
On 23 February 2024, the Group and JERA
Scarborough Pty Ltd (JERA) entered into a sale and purchase
agreement for JERA to acquire a 15.1% non-operating participating
interest in the Scarborough Joint Venture. The transaction is
expected to complete in the second half of 2024. As a result,
$1,378 million of assets have been reclassified as assets held for
sale and $119 million of liabilities have been reclassified as
liabilities directly associated with assets held for sale (refer to
Note B.4). This has also resulted in the recognition of a net tax
benefit of $91 million (refer to Note A.5).
·
On 26 March 2024, the Group completed the
sell-down of a 10% non-operating participating interest in the
Scarborough Joint Venture to LNG Japan. Proceeds from the sale were
$910 million, including capital reimbursements and escalation. As a
result, the Group recognised a pre-tax gain of $121 million on the
transaction (refer to Note B.4).
·
In June 2024, the Sangomar project in Senegal
achieved first oil. During the half-year ended 30 June 2024,
Sangomar produced 0.54 MMboe of crude oil. Production will continue
to ramp up in 2024. The Group also recognised a net deferred tax
asset of $305 million (refer to Note A.5).
CONDENSED CONSOLIDATED INCOME
STATEMENT
for the half-year ended 30 June
2024
|
Notes
|
2024
US$m
|
2023
US$m
|
Operating revenue
|
A.1
|
5,988
|
7,400
|
Cost of sales
|
A.1
|
(3,272)
|
(3,872)
|
Gross profit
|
|
2,716
|
3,528
|
Other income
|
A.1
|
315
|
134
|
Other expenses
|
A.1
|
(669)
|
(803)
|
Impairment losses
|
A.1
|
-
|
(68)
|
Profit before tax and net finance costs
|
|
2,362
|
2,791
|
Finance income
|
|
95
|
174
|
Finance costs
|
A.2
|
(147)
|
(137)
|
Profit before tax
|
|
2,310
|
2,828
|
Petroleum resource rent tax (PRRT)
expense
|
|
(192)
|
(778)
|
Income tax expense
|
A.5
|
(146)
|
(284)
|
Profit after tax
|
|
1,972
|
1,766
|
Profit attributable to:
|
|
|
|
Equity holders of the
parent
|
|
1,937
|
1,740
|
Non-controlling
interest
|
|
35
|
26
|
Profit for the period
|
|
1,972
|
1,766
|
Basic earnings per share
attributable to equity holders of the parent
(US cents)
|
A.4
|
102.2
|
91.7
|
Diluted earnings per share
attributable to equity holders of the parent
(US cents)
|
A.4
|
101.4
|
91.1
|
The accompanying notes form part
of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
for the half-year ended 30
June 2024
|
2024
US$m
|
2023
US$m
|
Profit for the period
|
1,972
|
1,766
|
Other comprehensive income
|
|
|
Items that may be reclassified to the income statement in
subsequent periods:
|
|
|
(Losses)/gains on cash flow
hedges
|
(165)
|
413
|
Losses on cash flow hedges
reclassified to the income statement
|
38
|
241
|
Tax recognised within other
comprehensive income
|
19
|
(76)
|
Exchange fluctuations on
translation of foreign operations taken to equity
|
-
|
1
|
Items that will not be reclassified to the income statement
in subsequent periods:
|
|
|
Remeasurement loss on defined
benefit plan
|
(15)
|
-
|
Net loss on financial instruments
at fair value through other comprehensive income
|
(11)
|
(23)
|
Other comprehensive (loss)/income for the period, net
of tax
|
(134)
|
556
|
Total comprehensive income for the period
|
1,838
|
2,322
|
Total comprehensive income attributable to:
|
|
|
Equity holders of the
parent
|
1,803
|
2,296
|
Non-controlling
interest
|
35
|
26
|
Total comprehensive income for the period
|
1,838
|
2,322
|
The accompanying notes form part
of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT
OF
FINANCIAL POSITION
as at 30 June 2024
Notes
|
30
June
2024
US$m
|
31
December
2023
US$m
|
Current assets
|
|
|
|
Cash and cash
equivalents
|
|
1,979
|
1,740
|
Receivables
|
|
1,459
|
1,517
|
Inventories
|
|
719
|
616
|
Other financial assets
|
D.3
|
154
|
209
|
Assets held for sale
|
B.4
|
1,378
|
826
|
Tax receivable
|
|
306
|
118
|
Other assets
|
|
57
|
92
|
Total current assets
|
6,052
|
5,118
|
Non-current assets
|
|
|
|
Receivables
|
|
790
|
839
|
Inventories
|
|
183
|
120
|
Other financial assets
|
D.3
|
106
|
120
|
Exploration and evaluation
assets
|
B.1
|
714
|
668
|
Oil and gas properties
|
B.2
|
40,125
|
40,791
|
Deferred tax assets
|
|
1,969
|
1,717
|
Lease assets
|
|
1,187
|
1,230
|
Investments accounted for using
the equity method
|
|
248
|
249
|
Goodwill
|
B.3
|
3,697
|
3,995
|
Other assets
|
|
571
|
514
|
Total non-current assets
|
49,590
|
50,243
|
Total assets
|
55,642
|
55,361
|
Current liabilities
|
|
|
|
Payables
|
|
1,597
|
1,724
|
Interest-bearing
liabilities
|
|
992
|
-
|
Other financial
liabilities
|
D.3
|
152
|
67
|
Liabilities directly associated
with assets held for sale
|
B.4
|
119
|
94
|
Provisions
|
D.2
|
1,223
|
1,506
|
Tax payable
|
|
416
|
1,108
|
Lease liabilities
|
|
217
|
298
|
Other liabilities
|
|
165
|
185
|
Total current liabilities
|
4,881
|
4,982
|
Non-current liabilities
|
|
|
|
Interest-bearing
liabilities
|
|
4,830
|
4,883
|
Deferred tax
liabilities
|
|
1,312
|
1,627
|
Other financial
liabilities
|
D.3
|
203
|
42
|
Provisions
|
D.2
|
6,454
|
6,451
|
Tax payable
|
|
39
|
40
|
Lease liabilities
|
|
1,328
|
1,317
|
Other liabilities
|
|
766
|
849
|
Total non-current liabilities
|
14,932
|
15,209
|
Total liabilities
|
19,813
|
20,191
|
Net assets
|
35,829
|
35,170
|
Equity
|
|
|
|
Issued and fully paid
shares
|
C.1
|
29,001
|
29,001
|
Shares reserved for employee share
plans
|
C.1
|
(65)
|
(49)
|
Other reserves
|
|
4,726
|
5,261
|
Retained earnings
|
|
1,408
|
186
|
Equity attributable to equity holders of the
parent
|
35,070
|
34,399
|
Non-controlling interest
|
759
|
771
|
Total equity
|
35,829
|
35,170
|
The accompanying notes form part
of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT
OF
CASH FLOWS
for the half-year ended 30
June 2024
|
Notes
|
2024
US$m
|
2023
US$m
|
Cash flows from operating activities
|
|
|
|
Profit after tax for the
period
|
|
1,972
|
1,766
|
Adjustments for:
|
|
|
|
Non-cash items
|
|
|
|
Depreciation and
amortisation
|
|
1,908
|
1,948
|
Depreciation of lease
assets
|
|
101
|
81
|
Change in fair value of derivative
financial instruments
|
|
205
|
269
|
Net finance
costs/(income)
|
|
52
|
(37)
|
Tax expense
|
|
338
|
1,062
|
Exploration and evaluation written
off
|
|
-
|
1
|
Impairment losses
|
|
-
|
68
|
Restoration movement
|
|
15
|
20
|
Gain on disposal of oil and gas
properties
|
|
(143)
|
-
|
Other
|
|
(66)
|
(180)
|
Changes in assets and
liabilities
|
|
|
|
Decrease in trade and other
receivables
|
|
113
|
488
|
Increase in inventories
|
|
(166)
|
(72)
|
Decrease in provisions
|
|
(31)
|
(110)
|
Decrease in lease
liabilities
|
|
-
|
(8)
|
Decrease/(increase) in other
assets and liabilities
|
|
39
|
(234)
|
Increase/(decrease) in trade and
other payables
|
|
6
|
(220)
|
Cash generated from
operations
|
|
4,343
|
4,842
|
Interest received
|
|
77
|
174
|
Dividends received
|
|
-
|
6
|
Borrowing costs relating to
operating activities
|
|
(2)
|
(8)
|
Income tax and PRRT
paid
|
|
(1,700)
|
(2,233)
|
Payments for
restoration
|
|
(325)
|
(162)
|
Receipts from hedge
collateral
|
|
-
|
332
|
Net cash from operating
activities1
|
|
2,393
|
2,951
|
Cash flows used in investing activities
|
|
|
|
Payments for capital and
exploration expenditure
|
|
(2,418)
|
(2,457)
|
Borrowing costs relating to
investing activities
|
|
(155)
|
(181)
|
Proceeds from disposal of
non-current assets
|
|
920
|
3
|
Funding of equity accounted
investments
|
|
-
|
(2)
|
Net cash used in investing activities
|
|
(1,653)
|
(2,637)
|
Cash flows used in financing
activities
|
|
|
|
Proceeds from
borrowings
|
C.2
|
950
|
-
|
Repayment of borrowings
|
C.2
|
-
|
(41)
|
Purchases of shares relating to
employee share plans1
|
|
(25)
|
(20)
|
Repayment of the principal portion
of lease liabilities
|
|
(213)
|
(168)
|
Borrowing costs relating to lease
liabilities
|
|
(21)
|
(3)
|
Contributions to non-controlling
interests
|
|
(48)
|
(51)
|
Dividends paid
|
|
(1,139)
|
(2,738)
|
Net cash used in financing
activities1
|
|
(496)
|
(3,021)
|
Net increase/(decrease) in cash
held
|
|
244
|
(2,707)
|
Cash and cash equivalents at the beginning of the
period
|
|
1,740
|
6,201
|
Effects of exchange rate
changes
|
|
(5)
|
(25)
|
Cash and cash equivalents at the end of the
period
|
|
1,979
|
3,469
|
1. Purchases of
shares relating to employee share plans, which were previously
classified within cash flows used in operating activities, has been
classified within cash flows used in financing activities for the
half-year ended 2024. The 2023 comparatives have been reclassified
to be presented on the same basis.
The accompanying notes form part
of the half-year financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
for the half-year ended 30 June
2024
|
Issued and fully paid shares
|
Reserved shares
|
Employee benefits reserve
|
Foreign currency translation reserve
|
Hedging reserve
|
Distributable profits reserve
|
Other reserve
|
Retained earnings
|
Equity holders
of the parent
|
Non-controlling interest
|
Total equity
|
Notes
|
C.1
US$m
|
C.1
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
US$m
|
At 1 January 2024
|
29,001
|
(49)
|
290
|
795
|
88
|
4,118
|
(30)
|
186
|
34,399
|
771
|
35,170
|
Profit for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,937
|
1,937
|
35
|
1,972
|
Other comprehensive
loss
|
-
|
-
|
-
|
-
|
(108)
|
-
|
(11)
|
(15)
|
(134)
|
-
|
(134)
|
Total comprehensive (loss)/income
for the period
|
-
|
-
|
-
|
-
|
(108)
|
-
|
(11)
|
1,922
|
1,803
|
35
|
1,838
|
Transfers
|
-
|
-
|
-
|
-
|
-
|
700
|
-
|
(700)
|
-
|
-
|
-
|
Employee share plan
purchases
|
-
|
(25)
|
-
|
-
|
-
|
-
|
-
|
-
|
(25)
|
-
|
(25)
|
Employee share plan
redemptions
|
-
|
9
|
(9)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Share-based payments (net of
tax)
|
-
|
-
|
32
|
-
|
-
|
-
|
-
|
-
|
32
|
-
|
32
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
(1,139)
|
-
|
-
|
(1,139)
|
(47)
|
(1,186)
|
At 30 June 2024
|
29,001
|
(65)
|
313
|
795
|
(20)
|
3,679
|
(41)
|
1,408
|
35,070
|
759
|
35,829
|
At 1 January 2023
|
29,001
|
(38)
|
278
|
796
|
(586)
|
3,541
|
2
|
3,342
|
36,336
|
791
|
37,127
|
Profit for the period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,740
|
1,740
|
26
|
1,766
|
Other comprehensive
income/(loss)
|
-
|
-
|
-
|
1
|
578
|
-
|
(23)
|
-
|
556
|
-
|
556
|
Total comprehensive income/(loss)
for the period
|
-
|
-
|
-
|
1
|
578
|
-
|
(23)
|
1,740
|
2,296
|
26
|
2,322
|
Transfers
|
-
|
-
|
-
|
-
|
-
|
4,700
|
-
|
(4,700)
|
-
|
-
|
-
|
Employee share plan
purchases
|
-
|
(20)
|
-
|
-
|
-
|
-
|
-
|
-
|
(20)
|
-
|
(20)
|
Employee share plan
redemptions
|
-
|
8
|
(8)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Share-based payments (net of
tax)
|
-
|
-
|
31
|
-
|
-
|
-
|
-
|
-
|
31
|
-
|
31
|
Dividends paid
|
-
|
-
|
-
|
-
|
-
|
(2,734)
|
-
|
-
|
(2,734)
|
(42)
|
(2,776)
|
At 30 June 2023
|
29,001
|
(50)
|
301
|
797
|
(8)
|
5,507
|
(21)
|
382
|
35,909
|
775
|
36,684
|
The accompanying notes form part
of the half-year financial statements.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
About these statements
Woodside Energy Group Ltd
(Woodside or the Group) is a for-profit entity limited by shares,
incorporated and domiciled in Australia. Its shares are publicly
traded on the Australian Securities Exchange (ASX), on the Main
Market for listed securities of the London Stock Exchange (LSE)
(with trades settled in the form of UK Depository Interests) and on
the New York Stock Exchange (NYSE) (in the form of Woodside
American Depositary Shares). The nature of the operations and
principal activities of the Group are described in the
Australia Operations, International Operations,
Marketing and Trading, Projects, Decommissioning, Exploration and
Development and New energy and Carbon solutions sections and
in the segment information
below.
The condensed consolidated
half-year financial statements were authorised for issue in
accordance with a resolution of the Directors on 27
August 2024.
Statement of compliance
The condensed consolidated
half-year financial statements are condensed general purpose
financial statements, which have been prepared in accordance with
Australian Accounting Standard (AASB) 134 Interim Financial Reporting as issued
by the Australian Accounting Standards Board and the Australian
Corporations Act 2001.
These condensed consolidated half-year financial statements also
comply with International Accounting Standard (IAS) 34 Interim Financial Reporting as issued
by the International Accounting Standards Board.
The condensed consolidated
half-year financial statements do not include all notes of the type
normally included in annual financial statements. Accordingly,
these condensed consolidated half-year financial statements are to
be read in conjunction with the Financial Statements within the
Annual Report for the year ended 31 December 2023 (2023 Financial
Statements) and any public announcements made by Woodside during
the period ended 30 June 2024 in accordance with the continuous
disclosure requirements of the Australian Corporations Act 2001 and the relevant
ASX, LSE and NYSE Listing Rules.
The Group's accounting policies
are materially consistent with those disclosed in the Group's 2023
Financial Statements. Adoption of new or amended standards and
interpretations effective 1 January 2024 did not result in any
significant changes to the Group's accounting policies. Refer to
Note E.3 for more details.
The significant accounting
estimates and judgements are consistent with those disclosed in the
2023 Financial Statements. Estimates have been revised, where
required, to reflect current market conditions including the impact
of climate change. Updated estimates used for the sell-down of the
Scarborough Joint Venture and embedded commodity derivatives are
disclosed in Notes B.4 and D.3 respectively; these assumptions
could change in the future.
Currency
The functional and presentation
currency of Woodside and all its material subsidiaries is US
dollars.
Transactions in foreign currencies
are initially recorded in the functional currency of the
transacting entity at the exchange rates ruling at the date of
transaction. Monetary assets and liabilities denominated in foreign
currencies at the reporting date are translated at the rates of
exchange ruling at that date. Exchange differences in the
consolidated financial statements are taken to the income
statement.
Rounding of amounts
The amounts contained in the
condensed consolidated half-year financial statements have been
rounded to the nearest million dollars under the option available
to the Group under Australian Securities and Investments Commission
(ASIC) Corporations (Rounding in Financial/Directors' Reports)
Instrument 2016/191 dated 24 March 2016, unless otherwise
stated.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
Basis of preparation
The condensed consolidated
half-year financial statements have been prepared on an historical
cost basis, except for derivative financial instruments and certain
other financial assets and financial liabilities, which have been
measured at fair value or amortised cost, adjusted for changes in
fair value attributable to the risks that are being hedged in
effective hedge relationships. Where not carried at fair value, if
the carrying value of financial assets and financial liabilities
does not approximate their fair value, the fair value has been
included in the notes to the condensed consolidated half-year
financial statements.
The condensed consolidated
half-year financial statements comprise the financial results of
the Group and its subsidiaries for the period ended 30 June 2024.
Subsidiaries are fully consolidated from the date on which control
is obtained by the Group and cease to be consolidated from the date
at which the Group ceases to have control.
The material subsidiaries of the
Group apply the same reporting period and accounting policies as
the parent company in preparation of the condensed consolidated
half-year financial statements. All intercompany balances and
transactions, including unrealised profits and losses arising from
intra-group transactions, have been eliminated in full.
Non-controlling interests are
allocated their share of the net profit after tax in the
consolidated income statement; their share of other comprehensive
income, net of tax, in the consolidated statement of comprehensive
income; and are presented within equity in the consolidated
statement of financial position, separately from parent
shareholders' equity.
Comparative information
The condensed consolidated
half-year financial statements provide comparative information in
respect of the previous period. Where required, a reclassification
of items in the financial statements of the previous period has
been made in accordance with the classification of items in the
condensed consolidated half-year financial statements of the
current period.
Reporting segments
Refer to the 2023 Financial
Statements for details of the Group's operating segment
information.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
A. Earnings
for the
period
A.1 Segment revenue and expenses
|
Australia
|
International
|
Marketing
|
Corporate/Other
|
Consolidated
|
|
2024
US$m
|
2023
US$m
|
2024
US$m
|
2023
US$m
|
2024 US$m
|
2023
US$m
|
2024
US$m
|
2023
US$m
|
2024
US$m
|
2023
US$m
|
Liquified natural gas
|
2,595
|
3,894
|
-
|
-
|
412
|
785
|
-
|
-
|
3,007
|
4,679
|
Pipeline gas
|
512
|
515
|
107
|
198
|
-
|
-
|
-
|
-
|
619
|
713
|
Crude oil and
condensate
|
861
|
715
|
1,190
|
1,028
|
40
|
15
|
-
|
-
|
2,091
|
1,758
|
Natural gas liquids
|
87
|
120
|
24
|
16
|
40
|
23
|
-
|
-
|
151
|
159
|
Revenue from sale of hydrocarbons
|
4,055
|
5,244
|
1,321
|
1,242
|
492
|
823
|
-
|
-
|
5,868
|
7,309
|
Intersegment
revenue1
|
(12)
|
(120)
|
(2)
|
(6)
|
14
|
126
|
-
|
-
|
-
|
-
|
Processing and services
revenue
|
113
|
85
|
-
|
-
|
-
|
-
|
-
|
-
|
113
|
85
|
Shipping and other
revenue
|
-
|
-
|
-
|
-
|
7
|
6
|
-
|
-
|
7
|
6
|
Other revenue
|
101
|
(35)
|
(2)
|
(6)
|
21
|
132
|
-
|
-
|
120
|
91
|
Operating revenue2
|
4,156
|
5,209
|
1,319
|
1,236
|
513
|
955
|
-
|
-
|
5,988
|
7,400
|
Production costs
|
(511)
|
(614)
|
(234)
|
(193)
|
-
|
-
|
-
|
-
|
(745)
|
(807)
|
Royalties, excise and
levies
|
(185)
|
(285)
|
(11)
|
(31)
|
-
|
-
|
-
|
-
|
(196)
|
(316)
|
Insurance
|
(13)
|
(20)
|
(2)
|
(5)
|
-
|
-
|
(11)
|
(9)
|
(26)
|
(34)
|
Inventory movement
|
15
|
31
|
47
|
2
|
-
|
-
|
-
|
-
|
62
|
33
|
Costs of production
|
(694)
|
(888)
|
(200)
|
(227)
|
-
|
-
|
(11)
|
(9)
|
(905)
|
(1,124)
|
Land and buildings
|
(26)
|
(31)
|
-
|
(2)
|
-
|
-
|
(2)
|
-
|
(28)
|
(33)
|
Transferred exploration and
evaluation
|
(41)
|
(51)
|
(45)
|
(2)
|
-
|
-
|
-
|
-
|
(86)
|
(53)
|
Plant and equipment
|
(1,189)
|
(1,298)
|
(567)
|
(543)
|
-
|
-
|
(23)
|
(17)
|
(1,779)
|
(1,858)
|
Oil and gas properties
depreciation and amortisation
|
(1,256)
|
(1,380)
|
(612)
|
(547)
|
-
|
-
|
(25)
|
(17)
|
(1,893)
|
(1,944)
|
Shipping and direct sales
costs
|
(61)
|
(107)
|
(43)
|
(38)
|
(50)
|
(30)
|
-
|
-
|
(154)
|
(175)
|
Trading costs
|
-
|
(4)
|
-
|
-
|
(273)
|
(618)
|
-
|
-
|
(273)
|
(622)
|
Other hydrocarbon costs
|
(26)
|
(7)
|
-
|
-
|
-
|
-
|
-
|
-
|
(26)
|
(7)
|
Other cost of sales
|
(17)
|
-
|
-
|
-
|
-
|
-
|
(4)
|
-
|
(21)
|
-
|
Other cost of sales
|
(104)
|
(118)
|
(43)
|
(38)
|
(323)
|
(648)
|
(4)
|
-
|
(474)
|
(804)
|
Cost of sales
|
(2,054)
|
(2,386)
|
(855)
|
(812)
|
(323)
|
(648)
|
(40)
|
(26)
|
(3,272)
|
(3,872)
|
Gross profit/(loss)
|
2,102
|
2,823
|
464
|
424
|
190
|
307
|
(40)
|
(26)
|
2,716
|
3,528
|
Other income3
|
242
|
106
|
20
|
-
|
20
|
1
|
33
|
27
|
315
|
134
|
Exploration and evaluation
expenditure
|
(12)
|
(9)
|
(86)
|
(123)
|
-
|
-
|
-
|
(1)
|
(98)
|
(133)
|
Amortisation of permit
acquisitions
|
-
|
-
|
(5)
|
(4)
|
-
|
-
|
-
|
-
|
(5)
|
(4)
|
Write-offs
|
-
|
-
|
-
|
(1)
|
-
|
-
|
-
|
-
|
-
|
(1)
|
Exploration and
evaluation
|
(12)
|
(9)
|
(91)
|
(128)
|
-
|
-
|
-
|
(1)
|
(103)
|
(138)
|
General, administration and
other costs
|
-
|
-
|
-
|
(3)
|
-
|
(10)
|
(214)
|
(224)
|
(214)
|
(237)
|
Amortisation of intangible
assets
|
-
|
-
|
-
|
-
|
-
|
-
|
(10)
|
-
|
(10)
|
-
|
Depreciation of lease
assets
|
(28)
|
(22)
|
(1)
|
(7)
|
(50)
|
(34)
|
(22)
|
(18)
|
(101)
|
(81)
|
Restoration movement
|
(14)
|
(8)
|
(1)
|
(12)
|
-
|
-
|
-
|
-
|
(15)
|
(20)
|
Other4
|
16
|
(27)
|
-
|
(1)
|
58
|
(99)
|
(300)
|
(200)
|
(226)
|
(327)
|
Other costs
|
(26)
|
(57)
|
(2)
|
(23)
|
8
|
(143)
|
(546)
|
(442)
|
(566)
|
(665)
|
Other expenses
|
(38)
|
(66)
|
(93)
|
(151)
|
8
|
(143)
|
(546)
|
(443)
|
(669)
|
(803)
|
Impairment losses
|
-
|
(68)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(68)
|
Profit/(loss) before tax and net finance
costs
|
2,306
|
2,795
|
391
|
273
|
218
|
165
|
(553)
|
(442)
|
2,362
|
2,791
|
1.
Intersegment revenue comprises the incremental income net of all
incremental associated expenses generated by the Marketing
segment's optimisation of the oil and gas portfolio.
2.
Operating revenue includes revenue from contracts with customers of
$5,981 million (2023: $7,394 million) and sub-lease income of $7
million (2023: $6 million) disclosed within shipping and other
revenue.
3.
Includes fees, recoveries and other income not associated with the
ongoing operations of the business. The 2024 amount includes the
gain on the Scarborough sell-down to LNG Japan of $121
million.
4.
Includes gains and losses on foreign exchange and hedging
activities, fair value losses on embedded derivatives and other
items not associated with the ongoing operations of the
business.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
A.2 Finance costs
|
2024
US$m
|
2023
US$m
|
Interest on interest-bearing
liabilities
|
125
|
112
|
Interest on lease
liabilities
|
51
|
54
|
Accretion charge
|
145
|
134
|
Other finance costs
|
13
|
21
|
Less: Finance costs capitalised
against qualifying assets
|
(187)
|
(184)
|
|
147
|
137
|
A.3 Dividends paid and proposed
Woodside Energy Group Ltd, the
parent entity, paid and proposed dividends as set out
below:
|
2024
US$m
|
2023
US$m
|
(a) Dividends paid during the
financial period
Prior year fully franked final
dividend US$0.60, paid on 4 April 2024
(2023: US$1.44, paid on 5 April 2023)
|
1,139
|
2,734
|
(b) Dividend declared subsequent
to the reporting period
(not recorded as a liability)
Current year fully franked interim
dividend US$0.69 to be paid on
3 October 2024 (2023: US$0.80, paid on 28 September
2023)
|
1,310
|
1,519
|
A.4 Earnings per share
|
2024
|
2023
|
Profit attributable to equity
holders of the parent (US$m)
|
1,937
|
1,740
|
Weighted average number of shares
on issue for basic earnings per share
|
1,896,041,815
|
1,896,624,636
|
Effect of dilution from
contingently issuable shares
|
14,691,983
|
12,981,487
|
Weighted average number of shares
on issue adjusted for the effect of dilution
|
1,910,733,798
|
1,909,606,123
|
Basic earnings per share (US cents)
|
102.2
|
91.7
|
Diluted earnings per share (US
cents)
|
101.4
|
91.1
|
Earnings per share is calculated
by dividing the profit for the period attributable to ordinary
equity holders of the parent by the weighted average number of
shares on issue during the period. The weighted average number of
shares makes allowance for shares reserved for employee share
plans. Diluted earnings per share is calculated by adjusting basic
earnings per share by the number of ordinary shares that would be
issued on conversion of all the dilutive potential ordinary shares
into ordinary shares.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
A.5 Taxes
|
2024
US$m
|
2023
US$m
|
Reconciliation of income tax expense
|
|
|
Profit before tax
|
2,310
|
2,828
|
PRRT expense
|
(192)
|
(778)
|
Profit before income
tax
|
2,118
|
2,050
|
Income tax expense calculated at
30%
|
635
|
615
|
Effect of tax rate
differentials
|
(15)
|
30
|
Effect of deferred tax assets not
recognised
|
35
|
67
|
Effect of tax benefits previously
unrecognised1
|
(366)
|
(340)
|
Reduction in deferred tax
liability due to held for sale basis1
|
(91)
|
-
|
Foreign exchange impact on tax
benefit
|
(11)
|
(83)
|
Adjustment to prior
years
|
(52)
|
(16)
|
Other
|
11
|
11
|
Income tax expense
|
146
|
284
|
1. Subsequent to achieving first oil on the Sangomar project in
June 2024, the Group has recognised a net deferred tax asset of
$305 million. The remaining $61 million relates to other tax
benefits previously unrecognised. The expected sale of Woodside's
15.1% share in the Scarborough Joint Venture resulted in the
recognition of a net tax benefit of $91 million. These events have
resulted in a reduction of the global effective income tax rate
from 25.6% to 6.9%. In the prior period, as a result of the final
investment decision to develop the Trion resource, the Group
recognised deferred tax assets of $319 million, resulting in a
reduction of the global effective income tax rate from 29.6% to
13.9%.
In May 2024, the Parliament of
Australia enacted the Treasury Laws Amendment (Tax Accountability
and Fairness) Act 2024 for the PRRT deductions cap which takes
effect from 1 July 2023. If an entity is an LNG producer and its
petroleum projects meet the criteria of the deduction cap, the
entity will have a taxable profit of 10% of the projects'
assessable receipts in the year of tax.
The new legislation has impacted
the Pluto and Wheatstone projects resulting in the Group
recognising a $124 million current tax payable as at 30 June
2024.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
B. Production
and growth
assets
B.1 Exploration and evaluation
|
Asia
Pacific
US$m
|
Americas
US$m
|
Africa
US$m
|
Total
US$m
|
Half-year ended 30 June 2024
|
|
|
|
|
Carrying amount at 1 January
2024
|
568
|
76
|
24
|
668
|
Additions
|
11
|
52
|
14
|
77
|
Amortisation of licence
acquisition costs
|
-
|
(5)
|
-
|
(5)
|
Transferred exploration and
evaluation
|
(8)
|
-
|
(18)
|
(26)
|
Carrying amount at 30 June 2024
|
571
|
123
|
20
|
714
|
Year ended 31 December
2023
|
|
|
|
|
Carrying amount at 1 January
2023
|
529
|
240
|
38
|
807
|
Additions
|
79
|
161
|
6
|
246
|
Amortisation of licence
acquisition costs
|
-
|
(2)
|
(2)
|
(4)
|
Expensed
|
(31)
|
(28)
|
(18)
|
(77)
|
Transferred exploration and
evaluation1
|
(9)
|
(295)
|
-
|
(304)
|
Carrying amount at 31 December
2023
|
568
|
76
|
24
|
668
|
1. On 20 June 2023, the
Group made a final investment decision to develop the Trion
resource in Mexico. Related exploration and evaluation assets of
$274 million were transferred to oil and gas properties.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
B.2 Oil and gas properties
|
Land and
buildings
US$m
|
Transferred exploration and
evaluation
US$m
|
Plant and
equipment
US$m
|
Projects
in
development1
US$m
|
Total
US$m
|
Half-year ended 30 June 2024
|
|
|
|
|
|
Carrying amount at 1 January
2024
|
701
|
777
|
23,589
|
15,724
|
40,791
|
Additions2
|
-
|
-
|
(127)
|
2,447
|
2,320
|
Disposals at written down
value
|
(2)
|
-
|
-
|
(47)
|
(49)
|
Depreciation and
amortisation
|
(28)
|
(86)
|
(1,779)
|
-
|
(1,893)
|
Completions and
transfers3
|
-
|
341
|
5,391
|
(5,706)
|
26
|
Transfer to assets held for
sale4
|
-
|
-
|
(4)
|
(1,066)
|
(1,070)
|
Carrying amount at 30 June 2024
|
671
|
1,032
|
27,070
|
11,352
|
40,125
|
At 30 June 2024
|
|
|
|
|
|
Historical cost
|
1,743
|
2,320
|
55,533
|
12,072
|
71,668
|
Accumulated depreciation and
impairment
|
(1,072)
|
(1,288)
|
(28,463)
|
(720)
|
(31,543)
|
Net carrying amount
|
671
|
1,032
|
27,070
|
11,352
|
40,125
|
Year ended 31 December
2023
|
|
|
|
|
|
Carrying amount at 1 January
2023
|
840
|
481
|
23,057
|
15,541
|
39,919
|
Additions
|
-
|
-
|
836
|
5,759
|
6,595
|
Disposals at written down
value
|
(8)
|
-
|
(2)
|
-
|
(10)
|
Depreciation and
amortisation
|
(67)
|
(125)
|
(3,764)
|
-
|
(3,956)
|
Impairment losses
|
(64)
|
(20)
|
(1,028)
|
(328)
|
(1,440)
|
Completions and
transfers
|
-
|
441
|
4,496
|
(4,633)
|
304
|
Transfer to assets held for
sale
|
-
|
-
|
(6)
|
(615)
|
(621)
|
Carrying amount at 31 December
2023
|
701
|
777
|
23,589
|
15,724
|
40,791
|
At 31 December 2023
|
|
|
|
|
|
Historical cost
|
1,745
|
1,979
|
50,272
|
16,443
|
70,439
|
Accumulated depreciation and
impairment
|
(1,044)
|
(1,202)
|
(26,683)
|
(719)
|
(29,648)
|
Net carrying amount
|
701
|
777
|
23,589
|
15,724
|
40,791
|
1. Projects in
development include the fair value ascribed to future phases of
certain projects acquired through business combinations.
2. Includes
$2,212 million of capital additions and $187 million of capitalised
borrowing costs offset by $79 million relating to changes in
restoration provision assumptions. The $127 million of additions
reducing plant and equipment relates to changes in restoration
provision assumptions.
3. Upon first
oil in June 2024, the carrying value of the Sangomar project in
projects in development has been transferred to plant and
equipment.
4. Refer to Note
B.4 for details of the sell-downs of the Scarborough Joint
Venture.
The Group has capital expenditure
commitments contracted for, but not provided for in the financial
statements, of
$3,017 million (31 December 2023: $4,245 million).
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
B.3 Goodwill
|
US$m
|
Half-year ended 30 June 2024
|
|
Carrying amount at 1 January
2024
|
3,995
|
Transfer to assets held for
sale1
|
(298)
|
Carrying amount at 30 June 2024
|
3,697
|
At 30 June 2024
|
|
Cost
|
4,174
|
Accumulated impairment
|
(477)
|
Net carrying amount
|
3,697
|
Year ended 31 December
2023
|
|
Carrying amount at 1 January
2023
|
4,614
|
Adjustment to purchase price
allocation
|
55
|
Impairment
|
(477)
|
Transfer to assets held for
sale
|
(197)
|
Carrying amount at 31 December
2023
|
3,995
|
At 31 December 2023
|
|
Cost
|
4,472
|
Accumulated impairment
|
(477)
|
Net carrying amount
|
3,995
|
1. Refer to Note B.4(a) for
details of the sell-downs of the Scarborough Joint
Venture.
B.4 Disposal of assets
(a) Sell-down of Scarborough Joint Venture to
JERA
On 23 February 2024, the Group
entered into a sale and purchase agreement with JERA for the sale
of a 15.1% non-operating participating interest in the Scarborough
Joint Venture.
As at 30 June 2024, the Group has
reclassified $1,378 million of assets, being the carrying value of
the 15.1% interest in the Scarborough Joint Venture within the
Australia segment, to assets held for sale. Liabilities of $119
million have been reclassified to liabilities directly associated
with assets held for sale. No impairment of assets occurred on
reclassification to held for sale.
The following assets and
liabilities were reclassified as held for sale as at 30 June
2024:
|
US$m
|
Assets classified as held for sale
|
|
Oil and gas properties
|
1,070
|
Inventories
|
6
|
Lease assets
|
2
|
Goodwill
|
298
|
Other assets
|
2
|
Total assets held for sale
|
1,378
|
|
|
Liabilities directly associated with assets held for
sale
|
|
Payables
|
(28)
|
Deferred tax
liabilities
|
(75)
|
Lease liabilities
|
(8)
|
Provisions
|
(8)
|
Total liabilities directly associated with assets held for
sale
|
(119)
|
The purchase price is $740
million, subject to adjustments which includes the reimbursement to
Woodside for JERA's share of expenditure for the Scarborough
project from the effective date of 1 January 2022. The total
proceeds from the sale are expected to exceed the net carrying
value of the assets and liabilities classified as held for sale.
The transaction is expected to complete in the second half of 2024.
Completion of the transaction is subject to conditions precedent
including Western Australia Government approval.
This has also resulted in the
recognition of a net tax benefit of $91 million. After completion,
the Group's participating interest in the Scarborough Joint Venture
will reduce from 90% to 74.9%.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
B.4 Disposal of assets (continued)
(a) Sell-down of Scarborough Joint Venture to JERA
(continued)
Key estimates and judgements
Goodwill allocation on Scarborough sell-down
In accordance with AASB 136/IAS 36
Impairment of assets, if
goodwill has been allocated to a CGU and the entity disposes of an
operation within that unit, the goodwill associated with the
operation disposed shall be included in the carrying value of the
operation when determining the gain or loss on disposal and
measured on the basis of the relative values of the operation
disposed of and the portion of the CGU retained.
The Pluto-Scarborough CGU includes
goodwill allocated from the merger with BHP Petroleum in 2022.
Judgement is required to determine the amount of goodwill allocated
to the 15.1% participating interest in the Scarborough assets being
disposed.
The Group used fair value
measurements of Pluto and Scarborough assets within the CGU as the
basis to allocate goodwill between the Pluto and Scarborough
assets. The goodwill associated with the participating interest of
the Scarborough assets being disposed of was determined based on
the percentage participating interest disposed of in proportion to
the participating interest being retained.
(b) Sell-down of Scarborough Joint Venture to LNG
Japan
On 8 August 2023 the Group entered
into a sale and purchase agreement with LNG Japan for the sale of a
10% non-operating participating interest in the Scarborough Joint
Venture.
As at 31 December 2023, the Group
reclassified $823 million of assets, being the carrying value of
the 10% interest in the Scarborough Joint Venture, to assets held
for sale. Liabilities of $94 million were reclassified to
liabilities directly associated with assets held for
sale.
The transaction completed on 26
March 2024, reducing the Group's participating interest from 100%
to 90%. Proceeds from the sale were $910 million, including capital
reimbursements and escalation. Delays to the first cargo or cost
overruns in specific circumstances may result in payments by
Woodside to LNG Japan of up to a maximum of $50 million. For the
half-year ended 30 June 2024, the Group recognised a pre-tax gain
on sale of $121 million.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
C. Debt
and
capital
C.1 Contributed equity
Issued and fully paid shares
|
Number of
shares
|
US$m
|
Half-year ended 30 June 2024
|
|
|
Opening balance
|
1,898,749,771
|
29,001
|
Amounts as at 30 June 2024
|
1,898,749,771
|
29,001
|
Year ended 31 December
2023
|
|
|
Opening balance
|
1,898,749,771
|
29,001
|
Amounts as at 31 December
2023
|
1,898,749,771
|
29,001
|
All shares are a single class with
equal rights to dividends, capital distributions and voting. The
Company does not have authorised capital nor par value in respect
of its issued shares.
Reserved shares
Reserved shares are the Group's own
equity instruments, which are used in employee share-based payment
arrangements or the Dividend Reinvestment Plan (DRP). The DRP was
suspended on 27 February 2023. These shares are deducted from
equity.
|
Number of
shares
|
US$m
|
Half-year ended 30 June 2024
|
|
|
Opening balance
|
2,140,927
|
(49)
|
Purchases during the
period
|
1,262,082
|
(25)
|
Vested/allocated during the
period
|
(424,959)
|
9
|
Amounts as at 30 June 2024
|
2,978,050
|
(65)
|
Year ended 31 December
2023
|
|
|
Opening balance
|
1,873,777
|
(38)
|
Purchases during the
year
|
2,332,121
|
(57)
|
Vested/allocated during the
year
|
(2,064,971)
|
46
|
Amounts as at 31 December
2023
|
2,140,927
|
(49)
|
C.2 Interest-bearing liabilities and financing
facilities
During the period, the Group
completed the drawdown of $500 million from bilateral loan
facilities. In addition, the Group entered into the following
facilities during the period:
· $1,000 million loan facility with Japan Bank for
International Cooperation (JBIC) with a term of 10 years. Interest
is based on daily Secured
Overnight Financing Rate (SOFR) plus margin. This facility was
fully drawn subsequent to the period on 22 July
2024.
· $450
million syndicated term loan facility with a tenor of 10 years.
Interest is based on daily SOFR plus credit adjustment spread (CAS)
and margin. This facility was fully drawn in June 2024.
There were no other material
changes to interest-bearing liabilities and financing facilities.
As at 30 June 2024, the Group had $6,500 million (31 December 2023:
$6,050 million) of available undrawn facilities. Subsequent to 30
June 2024, the Group cancelled $1,550 million of undrawn
facilities.
For the year ended 31 December
2023, the Group repaid $201 million of the CHF Medium Term Note and
$83 million of the JBIC facility which was settled in July
2023.
Fair value
The carrying amounts of
interest-bearing liabilities approximate their fair values, with
the exception of the Group's unsecured bonds and the medium-term
notes. The unsecured bonds have a carrying amount of $4,087 million
(31 December 2023: $4,087 million) and a fair value of $3,958
million (31 December 2023: $3,936 million). The medium-term notes
have a carrying amount of $200 million (31 December 2023: $200
million) and a fair value of $188 million (31 December 2023: $188
million). Fair value is calculated based on the present value of
future principal and interest cash flows, discounted at the market
rate of interest at the reporting date and classified as Level 1 on
the fair value hierarchy.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
D. Other
assets and
liabilities
D.1 Segment assets and liabilities
|
30 June
2024
US$m
|
31
December
2023
US$m
|
(a) Segment assets
|
|
|
Australia
|
30,895
|
31,602
|
International
|
18,083
|
17,923
|
Marketing
|
798
|
835
|
Corporate/Other
|
5,866
|
5,001
|
|
55,642
|
55,361
|
|
30 June
2024
US$m
|
31
December
2023
US$m
|
(b) Segment liabilities
|
|
|
Australia
|
7,312
|
7,833
|
International
|
2,434
|
2,624
|
Marketing
|
890
|
751
|
Corporate/Other
|
9,177
|
8,983
|
|
19,813
|
20,191
|
Corporate/Other assets mainly
comprise cash and cash equivalents, lease assets and deferred tax
assets. Corporate/Other liabilities mainly comprise
interest-bearing liabilities, lease liabilities and deferred tax
liabilities.
D.2 Provisions
|
Restoration1
US$m
|
Employee
benefits
US$m
|
Other
US$m
|
Total
US$m
|
Half-year ended 30 June 2024
|
|
|
|
|
At 1 January 2024
|
7,154
|
522
|
281
|
7,957
|
Change in provision
|
(449)
|
(31)
|
55
|
(425)
|
Unwinding of present value
discount
|
144
|
-
|
1
|
145
|
Carrying amount at 30 June 2024
|
6,849
|
491
|
337
|
7,677
|
Current
|
698
|
302
|
223
|
1,223
|
Non-current
|
6,151
|
189
|
114
|
6,454
|
Net carrying amount
|
6,849
|
491
|
337
|
7,677
|
Year ended 31 December
2023
|
|
|
|
|
At 1 January 2023
|
6,253
|
517
|
409
|
7,179
|
Change in provision
|
664
|
5
|
(128)
|
541
|
Unwinding of present value
discount
|
237
|
-
|
-
|
237
|
Carrying amount at 31 December
2023
|
7,154
|
522
|
281
|
7,957
|
Current
|
1,011
|
351
|
144
|
1,506
|
Non-current
|
6,143
|
171
|
137
|
6,451
|
Net carrying amount
|
7,154
|
522
|
281
|
7,957
|
1. 2024 change
in provision is due to a revision of discount rates of $147 million
(primarily due to an increase in risk-free rates), changes in
foreign exchange rates of $84 million and provisions used of $358
million, offset by changes in estimates of $140 million.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
D.3 Other financial assets and liabilities
|
30 June
2024
US$m
|
31
December
2023
US$m
|
Other financial assets
|
|
|
Financial instruments at fair
value through profit and loss
|
|
|
Derivative financial instruments
designated as hedges
|
160
|
248
|
Other financial assets
|
100
|
53
|
Financial instruments at fair
value through other comprehensive income
|
|
|
Other financial assets
|
-
|
28
|
Total other financial assets
|
260
|
329
|
Current
|
154
|
209
|
Non-current
|
106
|
120
|
Net carrying amount
|
260
|
329
|
Other financial liabilities
|
|
|
Financial instruments at fair
value through profit and loss
|
|
|
Derivative financial instruments
designated as hedges
|
126
|
74
|
Embedded derivative
|
188
|
35
|
Other financial
liabilities
|
41
|
-
|
Total other financial liabilities
|
355
|
109
|
Current
|
152
|
67
|
Non-current
|
203
|
42
|
Net carrying amount
|
355
|
109
|
Hedging activities
During the period, the following
hedging activities were undertaken:
· The
Group had hedged approximately 29.3 MMboe of 2024 oil production at
an average price of approximately $75.6 per barrel, of which
approximately 49% was delivered as at 30 June 2024.
· The
Group additionally hedged approximately 15 MMboe of 2025 oil
production at an average price of approximately $81.2 per
barrel.
· The
Group also has a hedging program for Corpus Christi LNG volumes
designed to protect against downside pricing risk. These hedges are
Henry Hub (HH) and Title Transfer Facility (TTF) commodity swaps.
Approximately 70% of volumes for the remainder of 2024, 48% of 2025
and 9% of 2026 volumes have been hedged.
· Through foreign exchange forward contracts, the Group hedged
the Australian dollar to US dollar exchange rate for a portion of
the Australian dollar denominated capital expenditure expected to
be incurred for the Scarborough development.
The following table presents the
Group's derivative financial instruments designated as hedges,
measured and recognised at fair value:
|
30 June
2024
US$m
|
31
December
2023
US$m
|
Oil swaps (cash flow
hedges)
|
(53)
|
(14)
|
HH Corpus Christi commodity swaps
(cash flow hedges)
|
(24)
|
(44)
|
TTF Corpus Christi commodity swaps
(cash flow hedges)
|
72
|
181
|
Interest rate swaps (cash flow
hedges)
|
48
|
43
|
Foreign exchange forwards (cash
flow hedges)
|
(9)
|
8
|
Total derivative financial instruments asset designated as
hedges
|
34
|
174
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
D.3 Other financial assets and liabilities
(continued)
Embedded commodity derivative
In 2023, the Group entered into a
revised long-term gas sale and purchase contract (GSPA) with
Perdaman, where a component of the selling price is linked to the
price of urea. The contract was assessed to contain an embedded
commodity derivative that is required to be separated and
recognised at fair value through profit and loss. The carrying
value of the embedded derivative at 30 June 2024 amounted to a net
liability of $188 million (31 December 2023: net liability of $35
million). The derivative is remeasured to fair value at each
reporting date in accordance with the urea price at that date. For
the six-month period ended 30 June 2024, an unrealised loss of $153
million (30 June 2023: unrealised loss of $52 million) has been
recognised through other expenses.
Fair value
Except for the other financial
assets and other financial liabilities set out in this note, there
are no other material financial assets or financial liabilities
carried at fair value. Other financial assets and other financial
liabilities set out in this note are classified as Level 2 on the
fair value hierarchy with market observable inputs, with the
exception of the embedded commodity derivative which has been
classified as Level 3 on the fair value hierarchy with no market
observable inputs. Refer to key estimates and judgements for
further details. During the period, there were no reclassifications
between the fair value hierarchy levels.
There were no changes to the
Group's valuation processes, valuation techniques and types of
inputs used in the fair value measurements during the
period.
Financial risk factors
The Group's activities expose its
financial instruments to a variety of market risks, including
foreign exchange, commodity price and interest rate risk. The
half-year financial report does not include all financial risk
management information and disclosures required in the Annual
Report and, as such, should be read in conjunction with the Group's
2023 Financial Statements. There have been no significant changes
in risk management policies since 31 December 2023. Refer to the
embedded commodity derivative key estimates and judgements section
for the sensitivity assessment on discount rates and
pricing.
Key estimates and judgements
Embedded commodity derivative
The fair value of the
Perdaman embedded derivative has been estimated
using a Monte Carlo simulation model. The assessment requires
management to make certain assumptions about the model inputs,
including forecast cash flows, discount rate, credit risk and
volatility. These assumptions require significant management
judgement and are subject to risk and uncertainty, and hence
changes in economic conditions can affect the assumptions. The
present value of the embedded derivative was estimated using the
assumptions set out below.
· Inflation rate - 2.5%.
· Discount rate - a pre-tax interest rate curve (range: 5.8% to
6.95%).
· Domestic gas pricing - forecast sales are subject to urea
pricing. Price assumptions are based on the best market information
available at measurement date and derived from short- and long-term
views of global supply and demand, building upon past experience of
the industry and consistent with external sources. The long-term
urea price is determined with reference to the prevailing gas hub
(TTF) prices available in the market at reporting date.
The embedded derivative is most
sensitive to changes in discount rates and pricing, which may
result in unrealised gains or losses recognised in other
income/expenses. The nominal impact of the effects of changes to
discount rate and long-term price assumptions are estimated as
follows:
Change in assumption1
|
US$m
|
Urea sales price: increase of
10%
|
137
|
Urea sales price: decrease of
10%
|
(137)
|
Discount rate: increase of
1.5%2
|
(186)
|
Discount rate: decrease of
1.5%2
|
230
|
1. Amounts
shown represent the change of the present value of the contract
keeping all other variables constant.
2. A
change of 1.5% represents 150 basis points.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
E. Other
items
E.1 Contingent liabilities and assets
|
30 June
2024
US$m
|
31
December
2023
US$m
|
Contingent liabilities at reporting date
|
|
|
Not otherwise provided for in the
financial statements:
|
|
|
Contingent liabilities
|
226
|
260
|
Guarantees
|
3
|
2
|
|
229
|
262
|
Contingent liabilities relate
predominantly to possible obligations whose existence will only be
confirmed by the occurrence or non-occurrence of uncertain future
events, and therefore the Group has not provided for such amounts
in these financial statements. The Group operates in complex tax
and legislative regimes. The amounts disclosed above include
estimates made in relation to ongoing disputes with various tax and
government authorities. Assessing a value of contingent liabilities
requires a high degree of judgement. The contingent liabilities
relating to tax matters are estimated based on notices received
from authorities before interest and penalties. The possibility of
further claims related to the same matters cannot be ruled out and
the judicial processes may take extended periods to conclude.
Additionally, there are a number of other claims and possible
claims that have arisen in the course of business against entities
in the Group, the outcome of which cannot be estimated at present
and for which no amounts have been included in the table
above.
The Group has contingent assets of
$56 million as at 30 June 2024 (31 December 2023: $47
million).
E.2 Changes to the composition of the Group
Since the last annual reporting,
Koolbardi Pte Ltd, a wholly owned subsidiary, was incorporated in
Singapore on 21 February 2024.
E.3 New standards and interpretations
New and amended accounting standards adopted
A number of amended standards
became applicable for the current reporting period. The Group did
not make any significant changes to its accounting policies and did
not make retrospective adjustments as a result of adopting these
amended standards. These amendments did not materially impact the
accounting policies or amounts disclosed in the half-year financial
statements of the Group.
New standards and interpretations not yet
adopted
Certain new accounting standards,
amendments to accounting standards and interpretations have been
published that are not mandatory for the 30 June 2024 reporting
period and have not been early adopted by the Group. These
standards, amendments or interpretations are not expected to have a
material impact to the Group in the current or future reporting
periods and on foreseeable future transactions with the exception
of AASB 18/ IFRS 18 Presentation and Disclosure
in Financial Statements and the
amendments to AASB 112/ IAS 12 Income Taxes
where the impact is under assessment.
Pillar Two tax reform
In December 2021, the Organisation
for Economic Co-operation and Development (OECD) published its
Pillar Two model rules. The Pillar Two model rules:
· aim
to ensure that large multinational groups pay a minimum amount of
tax on income arising in each jurisdiction in which they operate;
and
· would
achieve a minimum effective tax rate in each jurisdiction of 15%
from the reporting period commencing
1 January 2024.
For the half-year ended 30 June
2024, the Group paid $1,700 million of income tax and
PRRT.
The Group's impact assessment will
depend on the extent to which the Pillar Two legislation has been
enacted in the various jurisdictions the Group operates in and when
it comes into effect. As at reporting date, Australia has not
enacted the Pillar Two legislation. The Group will continue to
monitor and assess the expected impact of the Pillar Two
reform.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
for the half-year ended 30 June
2024
E.4 Events after the end of the reporting
period
Acquisition of Tellurian Inc
On 22 July 2024, the Group entered
into a definitive agreement to acquire all the issued and
outstanding common stock of Tellurian Inc (Tellurian) for a cash
payment of approximately $900 million (the transaction). As part of
the agreement, the Group has provided a loan facility of up to $230
million to Tellurian to ensure site activity maintains momentum
prior to the completion of the transaction. The loan is secured by
a first priority lien over the Tellurian assets, subject to
customary exclusions. The latest maturity date of the loan is 15
December 2024 or the date of transaction completion.
The transaction is subject to
Tellurian shareholder approval, satisfaction of customary
conditions precedent, and is expected to complete in the fourth
quarter of 2024. The financial effect of the transaction is still
being assessed.
Acquisition of OCI Clean Ammonia Holding
B.V.
On 5 August 2024, Woodside entered
into a binding agreement to acquire 100% of OCI Clean Ammonia
Holding B.V. (OCI) and its Clean Ammonia Project for an all-cash
consideration of approximately $2.35 billion. The project is under
construction and is subject to cost, schedule, and performance
guarantees from OCI.
The transaction is subject to OCI
shareholder approval, satisfaction of customary conditions
precedent, and is expected to complete in the second half of 2024.
The financial effect of the transaction is still being
assessed.
DIRECTORS' DECLARATION
For the half-year ended 30 June 2024
In accordance with a resolution of
directors of Woodside Energy Group Ltd, we state that:
In the opinion of the
directors:
a) the financial
statements and notes of the Group are in accordance with the
Australian Corporations Act
2001, including:
i.
giving a true and fair view of the Group's financial position as at
30 June 2024 and of its performance for the half-year ended on that
date; and
ii.
complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations
2001;
b) there are
reasonable grounds to believe that Woodside Energy Group Ltd will
be able to pay its debts as and when they become due and
payable.
For the purposes of the UK
Disclosure Guidance and Transparency Rules, the directors confirm
that to the best of their knowledge:
a)
the financial statements, prepared in accordance
with International Accounting Standard IAS 34 Interim Financial Reporting, give a
true and fair view of the assets, liabilities, financial position
and profit or loss of Woodside Energy Group Ltd and the
undertakings included in the consolidation taken as a whole;
and
b)
the half-year report includes a fair review of
the:
i.
important events that have occurred during the first six months of
the financial year and their impact on the half-year financial
statements;
ii.
principal risks and uncertainties for the
remaining six months of the financial year; and
iii.
related party transactions that have taken place
in the first six months of the financial year and that have
materially affected financial position or performance during that
period and any changes in the related party transactions described
in the last annual report that could have a material effect on
financial position or performance in the first six months of the
financial year.
On behalf of the Board
|
|
R J Goyder, AO
Chair
Perth, Western
Australia
27 August 2024
|
M
E O'Neill
Chief Executive Officer and Managing Director
Sydney, New South Wales
27 August 2024
|
INDEPENDENT REVIEW
REPORT
Independent auditor's review
report to the members of Woodside Energy Group
Ltd
Report on the half-year financial report
Conclusion
We have reviewed the half-year financial
report of Woodside Energy Group Ltd (the Company) and the entities
it controlled during the half-year (together the Group), which
comprises the condensed consolidated statement of financial
position as at 30 June 2024, the condensed consolidated income
statement, condensed consolidated statement of comprehensive
income, condensed consolidated statement of cash flows and
condensed consolidated statement of changes in equity for the
half-year ended on that date, selected explanatory notes and the
directors' declaration.
Based on our review, which is not an audit, we
have not become aware of any matter that makes us believe that the
accompanying half-year financial report of Woodside Energy Group
Ltd does not comply with:
1. The
Corporations Act 2001
including:
a. giving
a true and fair view of the Group's financial position as at 30
June 2024 and of its performance for the half-year ended on that
date
b.
complying with Australian Accounting Standard AASB 134 Interim Financial Reporting, and the
Corporations Regulations
2001.
2.
International Accounting Standard IAS 34 Interim Financial Reporting as issued
by the International Accounting Standards Board (IASB).
Basis for
conclusion
We conducted our review in accordance with
ASRE 2410 Review of a Financial
Report Performed by the Independent Auditor of the Entity
(ASRE 2410) and ISRE 2410 Review
of Interim Financial Information Performed by the Independent
Auditor of the Entity (ISRE 2410). Our responsibilities are
further described in the Auditor's responsibilities for the review of
the half-year financial report section of our
report.
We are independent of the Group in accordance
with the auditor independence requirements of the Corporations Act 2001 and the ethical
requirements of the Accounting Professional & Ethical Standards
Board's APES 110 Code of Ethics
for Professional Accountants (including Independence
Standards) (the Code) and the International Code of Ethics for Professional
Accountants (including International Independence Standards)
issued by the International Ethics Standards Board for Accountants
(IESBA Code) that are relevant to the audit of the annual financial
report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code and the IESBA
Code.
PricewaterhouseCoopers, ABN 52 780 433
757
Brookfield Place, Level 15, 125 St Georges
Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999,
www.pwc.com.au
Liability limited by a scheme approved under
Professional Standards Legislation.
Responsibilities of the
directors for the half-year financial report
The directors of the Company are responsible
for the preparation of the half-year financial report that gives a
true and fair view in accordance with Australian Accounting
Standards, the Corporations Act
2001 and International Financial Reporting Standards. The
directors are also responsible for such internal control as they
determine is necessary to enable the preparation of the half-year
financial report that gives a true and fair view and is free from
material misstatement whether due to fraud or error.
Auditor's responsibilities
for the review of the half-year financial report
Our responsibility is to express a conclusion
on the half-year financial report based on our review.
ASRE 2410 requires us to conclude whether we
have become aware of any matter that makes us believe that the
half-year financial report is not in accordance with the
Corporations Act 2001
including giving a true and fair view of the Group's financial
position as at 30 June 2024 and of its performance for the
half-year ended on that date, and complying with Australian
Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations
2001.
ISRE 2410 requires us to conclude whether
anything has come to our attention that causes us to believe that
the half-year financial statements, taken as a whole, are not
prepared in all material respects in accordance with International
Accounting Standard IAS 34 Interim Financial
Reporting.
A review of a half-year financial report
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with Australian Auditing Standards
and International Standards on Auditing and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
PricewaterhouseCoopers
N M Henry
Partner
Perth, Western Australia
27 August 2024
|
A G B
Hodge
Partner
Perth, Western Australia
27 August 2024
|
Appendix 4D
Dividends
Ex-dividend date
|
5 September 2024
|
|
|
Record date for the interim
dividend
|
6 September 2024
|
|
|
|
|
|
|
Date the dividend is
payable
|
3 October 2024
|
|
|
|
|
Current period
|
Previous corresponding period[29]
|
Interim dividend - fully
franked
|
US cents per share
|
69
|
80
|
None of these dividends are
foreign sourced.
|
Woodside dividends are determined and declared
in US dollars. However, shareholders will receive their dividend in
Australian dollars unless their registered address is in the United
Kingdom (in which case they will receive their dividend in British
pounds), in the United States of America (in which case they will
receive their dividend in US dollars) or in New Zealand (in which
case they will receive their dividend in NZ dollars).
Shareholders who reside outside of the United
States can elect to receive their dividend electronically in US
dollars, payable into a US financial institution account.
Shareholders who reside outside of the United States, the United
Kingdom, New Zealand and Australia may elect to receive their
dividend electronically in their local currency using Global Wire
Payment Service from the Company's share registry, Computershare
Investor Services Pty Ltd.
Shareholders should contact the Company's
share registry if they wish to alter their dividend currency for
future dividend payments. Contact details are available on
Woodside's website on the Shareholder Information section of the
Investors page. Shareholders must make an election to alter their
dividend currency on or before 5.00pm AWST on 9 September
2024.
Net Tangible Assets per ordinary security
|
Current
period
US$
|
Previous corresponding
period29
US$
|
Net Tangible Assets (US$ per
ordinary security)[30]
|
16.42
|
16.40
|
|
|
|
Details of Associates and Joint Venture
Entities
|
Percentage of ownership
interest held at end of period or date of
disposal
|
Name of entity
|
Current
period
|
Previous corresponding
period29
|
North West Shelf Gas Pty
Ltd
|
33.33%
|
33.33%
|
North West Shelf Liaison Company
Pty Ltd
|
33.33%
|
33.33%
|
China Administration Company Pty
Ltd
|
33.33%
|
33.33%
|
International Gas Transportation
Company Limited
|
33.33%
|
33.33%
|
North West Shelf Shipping Service
Company Pty Ltd
|
33.33%
|
33.33%
|
North West Shelf Lifting
Coordinator Pty Ltd
|
33.33%
|
33.33%
|
Blue Ocean Seismic Services
Limited
|
16.17%
|
28.50%
|
Iwilei District Participating
Parties, LLC
|
14.96%
|
14.96%
|
Caesar Oil Pipeline Company,
LLC
|
25.00%
|
25.00%
|
Cleopatra Gas Gathering Company
LLC
|
22.00%
|
22.00%
|
Marine Well Containment Company
LLC
|
10.00%
|
10.00%
|
Shareholder information
Key announcements 2024
January
|
Fourth quarter 2023
report
|
Appointment of Director and
changes to Committee Membership
|
February
|
Woodside concludes discussions
with Santos
|
Woodside releases Reserves
Statement and financial updates
|
Woodside to sell 15.1% Scarborough
interest to JERA
|
Full-year 2023 results and
briefing
|
Annual Report 2023 and US Annual
Report 2023 (Form 20-F)
|
Climate Transition Action Plan and
2023 Progress Report
|
March
|
Thriving through the energy
transition investor presentation
|
Woodside completes sale of 10%
Scarborough interest
|
April
|
Chair's letter to
shareholders
|
First quarter 2024
report
|
2024 Annual General
Meeting
|
June
|
Appointment of Director to
Woodside Board
|
Woodside achieves first oil at
Sangomar field in Senegal
|
Report on payments to governments
2023
|
July
|
Woodside to acquire Tellurian and
Driftwood LNG
|
Second quarter 2024
report
|
August
|
Woodside to acquire OCI's Clean
Ammonia Project
|
Half-Year 2024 line-item
guidance
|
Half-Year 2024 results
|
Events calendar 2024-2025
Key calendar dates for Woodside shareholders
in 2024-25. Please note dates are subject to review.
August
|
27
|
Half-year 2024 results
|
September
|
5
|
Ex-dividend date for interim
dividend (Australian Securities Exchange and London Stock
Exchange)
|
6
|
Ex-dividend date for interim
dividend (New York Stock Exchange)
|
6
|
Record date for interim
dividend
|
16
|
US investor event
|
October
|
3
|
Payment date for interim
dividend
|
16
|
Third quarter 2024
report
|
December
|
31
|
Year-end 2024
|
January
|
|
Fourth quarter 2024
report
|
Business directory
Registered office:
|
Postal address:
|
Woodside Energy Group
Ltd
Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
|
GPO Box D188
Perth WA 6840
Australia
T: +61 8 9348 4000
|
Investor enquiries
Investors seeking information on the company
should contact Investor Relations at:
Postal address:
|
|
Investor Relations
GPO Box D188
Perth WA 6840
Australia
|
T: +61 8 9348 4000
E: investor@woodside.com
W: woodside.com
|
Share registry enquiries
Investors seeking information about their
shareholdings should contact the company's share
registry:
Registered office:
|
Postal address:
|
Computershare Investor Services Pty Limited
Level 11
172 St Georges Terrace
Perth WA 6000
|
GPO Box D182
Perth WA 6840
T: 1300 558 507 (within Australia)
+61 3 9415 4632
(outside Australia)
E: web.queries@computershare.com.au
W: investorcentre.com/wds
|
The share registry can assist with queries on
share transfers, dividend payments, the dividend reinvestment plan,
notification of tax file numbers and changes of name, address or
bank account details.
Details of shareholdings can be checked by
visiting the share registry website at www.investorcentre.com/wds.
Details of our registrar in the United Kingdom
and our authorised depositary bank for Woodside's American
Depositary Receipt programme can be found on our
website.
Assets
Producing facilities
Australia
Asset
|
Role
|
Equity
|
Product
|
Pluto LNG
|
Operator
|
90%
|
LNG, pipeline gas and
condensate
|
North West
Shelf1
|
Operator
|
33.33%
|
LNG, pipeline gas, condensate and
NGLs
|
Wheatstone
|
Non-operator
|
13%
|
LNG, pipeline gas and
condensate
|
Julimar-Brunello
|
Operator
|
65%
|
Okha FPSO
|
Operator
|
50%
|
Crude oil
|
Ngujima-Yin FPSO
|
Operator
|
60%
|
Crude oil
|
Bass Strait
|
Non-operator
|
32.5-50%
|
Crude oil, pipeline gas, condensate
and NGLs
|
Pyrenees FPSO
|
Operator
|
40-71.4%
|
Crude oil
|
Macedon
|
Operator
|
71.4%
|
Pipeline gas
|
1. The
North West Shelf consists of a number of active joint ventures.
Woodside's participating interest is 33.33% in all of these apart
from the NWS joint ventures with China National Offshore Oil
Corporation. Woodside's participating interest in the China LNG JV
is 25% and in the Extended Interest JVs is 31.567%.
|
|
International
Asset
|
Role
|
Equity
|
Product
|
Sangomar
|
Operator
|
82%
|
Crude oil
|
Greater Angostura
|
Operator
|
45-68.46%
|
Crude oil and pipeline
gas
|
Greater Shenzi
|
Operator
|
72%
|
Crude oil, pipeline gas, condensate
and NGLs
|
Atlantis
|
Non-operator
|
44%
|
Crude oil, pipeline gas, condensate
and NGLs
|
Mad Dog
|
Non-operator
|
23.9%
|
Crude oil, pipeline gas, condensate
and NGLs
|
Projects1
Post FID
Asset
|
Role
|
Equity
|
Product
|
Scarborough
|
Operator
|
90%2
|
LNG, pipeline gas and
condensate
|
Trion
|
Operator
|
60%
|
Crude oil
|
1.
Excludes acquisitions subsequent to the period.
2. On
completion of the transaction to sell a 15.1% interest in the
Scarborough Joint Venture to JERA, Woodside will hold a 74.9%
interest and remain as operator. Completion is expected in the
second half of 2024.
|
|
Developments
Asset
|
Role
|
Equity
|
Product
|
|
Calypso
|
Operator
|
70%
|
Gas
|
|
Browse
|
Operator
|
30.6%
|
LNG, pipeline gas and
condensate
|
|
Greater
Scarborough1
|
Operator
|
100%
|
Gas
|
|
Liard
|
Non-operator
|
50%
|
Gas
|
|
Sunrise
|
Operator
|
33.44%
|
LNG, pipeline gas and
condensate
|
1. "Greater
Scarborough" includes the Jupiter and Thebe fields.
|
|
New energy opportunities1,2
Asset
|
Role
|
Equity
|
Product
|
H2OK
|
Operator
|
100%
|
Hydrogen
|
H2Perth
|
Operator
|
100%
|
Hydrogen
|
Hydrogen
Refueller@H2Perth
|
Operator
|
100%
|
Hydrogen
|
H2TAS
|
Operator
|
100%
|
Hydrogen and ammonia
|
Woodside Solar
|
Proponent2
|
100%
|
Solar energy
|
Southern Green
Hydrogen3
|
Preferred partner
|
-
|
Hydrogen and ammonia
|
Capella
|
Non-operating
participant
|
N/A
|
Solar energy
|
1. Subject to FID
and regulatory approvals. Excludes acquisitions subsequent to the
period.
2. Solar
generation, battery services and transmission access and services
will be supplied to Woodside under contracts with third
parties.
3. Subsequent to
the period, Woodside ceased discussions on a potential Southern
Green Hydrogen collaboration.
|
|
Greenhouse gas assessment permits
Country
|
Permit
|
Role
|
Joint venture
|
Comment
|
Australia
|
G-7-AP
|
Non-operator
|
Bonaparte CCS Assessment Joint
Venture
|
Located in the Bonaparte basin off
the north western coast of the Northern Territory
|
G-8-AP
|
Operator
|
Browse Joint Venture
|
For carbon capture and storage
evaluation for Browse
|
G-10-AP
|
Operator
|
Angel CCS Joint Venture
|
Located in the Northern Carnarvon
basin off the north west coast of Western Australia
|
Exploration
Country
|
Permit
|
Role
|
Equity
|
Product
|
Asia - Pacific
|
|
|
|
|
Australia
|
WA-404-P
|
Operator
|
100%
|
Gas prone basin
|
WA-536-P
|
Operator
|
65%
|
Gas prone basin
|
WA-550-P
|
Operator
|
100%
|
Gas prone basin
|
NT/P86
|
Operator
|
100%
|
Gas prone basin
|
WA-28-P
|
Operator
|
15.78%-33.3%
|
Oil and gas prone basin
|
WA-93-R
|
Operator
|
70%
|
Gas prone basin
|
WA-94-R
|
Operator
|
70%
|
Gas prone basin
|
Europe
|
|
|
|
|
Ireland
|
FEL 5/13
|
Operator
|
Exit initiated
|
Oil or gas prone basin
|
Africa
|
|
|
|
|
Senegal
|
Rufisque, Sangomar and Sangomar
Deep (RSSD)
|
Operator
|
Exit initiated
|
Oil prone basin
|
Congo
|
Marine XX
|
Non-operator
|
22.5%
|
Oil or gas prone basin
|
Egypt
|
Red Sea Block 1
|
Non-operator
|
45%
|
Oil or gas prone basin
|
Red Sea Block 3
|
Non-operator
|
30%
|
Oil and gas prone basin
|
Red Sea Block 4
|
Non-operator
|
25%
|
Oil and gas prone basin
|
North El Dabaa Offshore (Block
4)
|
Non-operator
|
27%
|
Oil and gas prone basin
|
Caribbean
|
|
|
|
|
Barbados
|
Bimshire Bay
|
Operator
|
60% - Exit initiated
|
Oil or gas prone basin
|
North America
|
|
|
|
|
US Gulf of Mexico
|
GB 780, GB 824, GB 825, GB 821, GB
866, EB 636, EB 637, EB 550, EB 594, EB 638, KC 859, KC 903, KC
904, KC 905, KC 948, KC 949, WR 795, WR 796
|
Operator
|
100%
|
Oil prone basin
|
GB 640, GB 641, GB 685, GB 555, GB
726, GB 770, GB 771, GB 604, GB 605, GB 647, GB 648, GB 772, GB
728, GB 729, GB 773, GB 774, GB 421, GB 464, GB 465, GB 508, GB
509, GC 598
|
Non-operator
|
40%
|
Oil prone basin
|
GB 574, GB 575,
GB 619, GB 529, GB 530, GB 531
|
Operator
|
40%
|
Oil prone basin
|
GC 436, GC 480
|
Non-operator
|
44%
|
Oil prone basin
|
GB 501, GB 502, GB 545, GB 630, GB
672, GB 676, GB 677, GB 716, GB 719, GB 720, GB 721, GB 760, GB
762, GB 763, GB 805, GB 806, GB 807, GB 851, GB 852, GB
895
|
Operator
|
60%
|
Oil prone basin
|
GC 282, GC 237
|
Non-operator
|
50%
|
Oil prone basin
|
GB 663, GB 664, GB 678,
GC 210, GC 211
|
Operator
|
100%
|
Oil prone basin
|
EB 655, EB 656, EB
699,
EB 700, EB 701, EB 566, EB 567,
EB 610, EB 611, AC 34, AC 36,
AC 78, AC 80, EB 914
|
Operator
|
70%
|
Oil prone basin
|
MC 798, MC 842
|
Non-operator
|
45%
|
Oil prone basin
|
AC 125, AC 126, AC 81, AC
82
|
Operator
|
45%
|
Oil prone basin
|
GC 679, GC 768
|
Non-operator
|
31.9%
|
Oil prone basin
|
MC 368, MC 369,
MC 411, MC 412, MC 455, MC 456
|
Non-operator
|
25%
|
Oil prone basin
|
GC 80, GC 123,
GC 124, GC 168
|
Operator
|
75%
|
Oil prone basin
|
GC 870
|
Non-operator
|
23.9%
|
Oil prone basin
|
AT 228, AT 273, AT 274, AT 409, AT
452, AT 453, AT 454, AT 424, AT 425, AT 469, AT 470
|
Non-operator
|
30%
|
Oil prone basin
|
Alternative Performance Measures
Woodside uses various alternative
performance measures (APM) which are non-IFRS measures that are
unaudited but derived from our Half-Year Financial Statements.
Although certain non-IFRS data has been extracted or derived from
the Half-Year financial statements, this data has not been audited
or reviewed by Woodside's independent auditors. These measures are
presented to provide further insight into Woodside's performance.
See Non-IFRS Measures on page 57 for more information.
APMs and their nearest respective
IFRS measure.
APMs derived from the condensed consolidated income
statement
|
30 June
2024
US$m
|
30
June
2023
US$m
|
EBIT/EBITDA excluding impairment
|
|
|
Net profit after tax
|
1,972
|
1,766
|
Adjusted for:
|
|
|
Finance income
|
(95)
|
(174)
|
Finance costs
|
147
|
137
|
PRRT expense
|
192
|
778
|
Income tax expense
|
146
|
284
|
EBIT
|
2,362
|
2,791
|
Adjusted for:
|
|
|
Oil and gas properties
depreciation and amortisation
|
1,893
|
1,944
|
Amortisation of licence
acquisition costs
|
5
|
4
|
Amortisation of intangible
assets
|
10
|
-
|
Depreciation of lease
assets
|
101
|
81
|
Impairment losses
|
-
|
68
|
EBITDA excluding impairment
|
4,371
|
4,888
|
|
|
|
Underlying NPAT
|
|
|
Net profit after tax attributable
to equity holders of the parent
|
1,937
|
1,740
|
Adjusted for the following
exceptional items:
|
|
|
Add: Derecognition of Pluto PRRT
(post-tax)
|
-
|
446
|
Add: Impairment losses
(post-tax)
|
-
|
29
|
Less: Sangomar DTA
recognition
|
(305)
|
-
|
Less: Trion DTA
recognition
|
-
|
(319)
|
Underlying NPAT
|
1,632
|
1,896
|
|
|
|
APMs derived from the condensed consolidated statement of
cash flows and other notes
|
30 June
2024
US$m
|
30
June
2023
US$m
|
Capital expenditure
|
|
|
Capital additions on
evaluation
|
42
|
76
|
Capital additions on oil and gas
properties
|
2,212
|
2,555
|
Capital additions on
other1
|
111
|
138
|
Capital expenditure
|
2,365
|
2,769
|
1.
Includes capital
additions on other corporate spend. The 2023 amounts have been
restated to be presented on the same basis.
|
APMs derived from the condensed consolidated statement of
cash flows and other notes (continued)
|
30 June
2024
US$m
|
30
June
2023
US$m
|
Exploration expenditure
|
|
|
Exploration and evaluation
expenditure
|
103
|
138
|
Adjusted for:
|
|
|
Amortisation expense
|
(5)
|
(4)
|
Prior year expense written
off
|
-
|
(1)
|
Exploration capitalised
|
14
|
54
|
Exploration expenditure
|
112
|
187
|
Capital and exploration expenditure
|
2,477
|
2,956
|
|
|
|
Free cash flow
|
|
|
Cash flow from operating
activities2
|
2,393
|
2,951
|
Cash flow used in investing
activities
|
(1,653)
|
(2,637)
|
Free cash flow
|
740
|
314
|
|
|
|
Liquidity
|
|
|
Cash and cash
equivalents
|
1,979
|
3,469
|
Add: Available undrawn
facilities
|
6,500
|
4,050
|
Less: Restricted cash
|
-
|
(10)
|
Liquidity
|
8,479
|
7,509
|
2.
Purchases of shares relating to employee share
plans, which were previously classified within cash flows used in
operating activities, has been classified within cash flows used in
financing activities for the half-year ended 2024. The 2023 amounts
have been restated to be presented on the same
basis.
|
|
APMs derived from the condensed consolidated statement of
financial position
|
30 June
2024
US$m
|
30
June
2023
US$m
|
Net tangible assets per ordinary security
|
|
|
Net assets
|
35,829
|
36,684
|
Adjusted for:
|
|
|
Goodwill
|
(3,697)
|
(4,669)
|
Non-controlling
interest
|
(759)
|
(775)
|
Intangible assets
|
(205)
|
(103)
|
Net tangible assets
|
31,168
|
31,137
|
Number of issued and fully paid
shares
|
1,898,749,771
|
1,898,749,771
|
Net tangible assets per ordinary security
|
16.42
|
16.40
|
|
|
|
Gearing
|
|
|
Interest-bearing liabilities
(Current and non-current)
|
5,822
|
5,109
|
Lease liabilities (Current and
non-current)
|
1,545
|
1,570
|
Adjusted for:
|
|
|
Cash and cash
equivalents
|
(1,979)
|
(3,469)
|
Add: Restricted cash
|
-
|
10
|
Net debt
|
5,388
|
3,220
|
Equity attributable to equity
holders of the parent
|
35,070
|
35,909
|
Total net debt and equity attributable to equity holders of
the parent
|
40,458
|
39,129
|
Gearing (%)
|
13.3
|
8.2
|
|
|
|
APMs derived from the condensed consolidated income statement
and statement of financial position
|
30 June
2024
US$m
|
30
June
2023
US$m
|
Return on equity
|
|
|
Net profit after tax attributable
to equity holders of the parent
|
1,937
|
1,740
|
Equity attributable to equity
holders of the parent
|
35,070
|
35,909
|
Return on equity (%)
|
5.5
|
4.8
|
|
|
|
Return on average capital employed
|
|
|
Profit before tax and net finance
costs
|
2,362
|
2,791
|
Opening non-current
liabilities
|
15,209
|
15,586
|
Closing non-current
liabilities
|
14,932
|
15,109
|
Average non-current
liabilities
|
15,071
|
15,348
|
Opening equity attributable to
equity holders of the parent
|
34,399
|
36,336
|
Closing equity attributable to
equity holders of the parent
|
35,070
|
35,909
|
Average equity attributable to
equity holders of the parent
|
34,735
|
36,123
|
Total average non-current liabilities and equity attributable
to equity holders of the parent
|
49,806
|
51,471
|
Return on average capital employed (%)
|
4.7
|
5.4
|
|
|
|
APMs derived from other notes
|
30 June
2024
US$m
|
30
June
2023
US$m
|
Revenue from sale of hydrocarbons (excluding marketing
segment)
|
5,376
|
6,486
|
|
|
|
Cash margin (excluding marketing segment)
|
|
|
Gross profit/(loss)
|
2,526
|
3,221
|
Adjusted for:
|
|
|
Other cost of sales
|
21
|
-
|
Trading costs
|
-
|
4
|
Oil and gas properties
depreciation and amortisation
|
1,893
|
1,944
|
Other revenue
|
(99)
|
41
|
Cash margin (excluding marketing segment)
|
4,341
|
5,210
|
Cash margin %
|
81%
|
80%
|
|
|
|
Production costs (excluding marketing
segment)
|
745
|
807
|
Production cost margin %
|
14%
|
13%
|
|
|
|
Other cash costs (excluding marketing
segment):
|
|
|
Royalties, excise and
levies
|
196
|
316
|
Insurance
|
26
|
34
|
Inventory movement
|
(62)
|
(33)
|
Shipping and direct sales
costs
|
104
|
145
|
Other hydrocarbon costs
|
26
|
7
|
Total other cash costs (excluding marketing
segment)
|
290
|
469
|
Other cash cost margin %
|
5%
|
7%
|
Notes
Glossary
Term
|
Definition
|
$, $m
|
US dollars unless otherwise stated,
millions of dollars
|
1P
|
Proved reserves
|
2C
|
Best Estimate of Contingent
resources
|
2P
|
Proved plus Probable
reserves
|
Abate/abatement
|
Avoidance, reduction or removal of
an amount of carbon dioxide or equivalent.
|
ASX
|
Australian Securities
Exchange
|
A$, AUD
|
Australian dollars
|
BHP Petroleum
|
Woodside Energy Global Holdings Pty
Ltd ACN 006 923 897 (formerly known as BHP Petroleum International
Pty Ltd) and, unless context otherwise requires, its subsidiaries.
References to "Woodside Energy Global Holdings Pty Ltd" or "BHP
Petroleum International Pty Ltd" are references to Woodside Energy
Global Holdings Pty Ltd ACN 006 923 897 (formerly known as BHP
Petroleum International Pty Ltd) excluding its
subsidiaries.
|
Biodiversity
|
Biological diversity means the
variability among living organisms from all sources including,
inter alia, terrestrial, marine and other aquatic ecosystems and
the ecological complexes of which they are a part; this includes
diversity within species, between species and of
ecosystems.1
|
Board
|
The Board of Directors of Woodside
Energy Group Ltd
|
Brent
|
Intercontinental Exchange (ICE)
Brent Crude deliverable futures contract (oil price)
|
Capital expenditure
|
Includes capital additions on oil
and gas properties and evaluation capitalised.
|
Carbon credit
|
A tradeable financial instrument
that is issued by a carbon-crediting program. A carbon credit
represents a greenhouse gas emission reduction to, or removal from,
the atmosphere equivalent to 1 tCO2-e, calculated as the
difference in emissions from a baseline scenario to a project
scenario. Carbon credits are uniquely serialised, issued, tracked
and retired or administratively cancelled by means of an electronic
registry operated by an administrative body, such as a
carbon-crediting program.
|
Cash margin
|
Gross profit/loss adjusted for
other cost of sales, trading costs, oil and gas properties
depreciation and amortisation and other revenue. Excludes the
marketing segment. Cash margin % is calculated as cash margin
divided by revenue from sale of hydrocarbons (excluding marketing
segment).
|
CCS
|
Carbon capture and
storage
|
CCUS
|
Carbon capture utilisation and
storage
|
CHF
|
Swiss francs
|
CO2
|
Carbon dioxide
|
CO2-e
|
CO2 equivalent. The
universal unit of measurement to indicate the global warming
potential of each of the seven greenhouse gases, expressed in terms
of the global warming potential of one unit of carbon dioxide. It
is used to evaluate releasing (or avoiding releasing) any
greenhouse gas against a common basis.2
|
Condensate
|
Hydrocarbons that are gaseous in a
reservoir but that condense to form liquids as they rise to the
surface.
|
cps
|
Cents per share
|
Decarbonisation
|
Woodside uses this term to describe
activities or pathways that have the effect of moving towards a
state that is lower carbon, as defined in this glossary.
|
DRP
|
Dividend reinvestment
plan
|
EBIT
|
Calculated as profit before income
tax, PRRT and net finance costs
|
EBITDA excluding
impairment
|
Calculated as profit before income
tax, PRRT, net finance costs, depreciation and amortisation,
impairment losses, impairment reversals
|
Emissions
|
Emissions refers to emissions of
greenhouse gases unless otherwise stated.
|
EPS
|
Earnings per share
|
Exploration expenditure
|
Includes exploration and evaluation
expenditure less amortisation of licence acquisition costs and
prior year exploration expense written off.
|
Extended Interest Joint Ventures or
Extended Interest JVs
|
The Extended Interest Joint
Ventures commenced on 1 August 2020 and cover the relevant joint
venturers' production entitlement for equity lifted LNG and
pipeline gas from the North West Shelf Project. Woodside'
participating interest in the Extended Interest Joint Ventures is
31.567%.
|
FEED
|
Front-end engineering
design
|
FID
|
Final investment
decision
|
FPSO
|
Floating production storage and
offloading
|
FPU
|
Floating production unit
|
Free cash flow
|
Cash flow from operating activities
and cash flow from investing activities
|
GAAP
|
Generally Accepted Accounting
Principles
|
Gearing
|
Net debt divided by the total of
net debt and equity attributable to equity holders of the
parent.
|
GHG or greenhouse gas
|
The seven greenhouse gases listed
in the Kyoto Protocol are: carbon dioxide (CO2); methane
(CH4); nitrous oxide (N2O);
hydrofluorocarbons (HFCs); nitrogen trifluoride (NF3);
perfluorocarbons (PFCs); and sulphur hexafluoride
(SF6).2
|
Goal
|
Woodside uses this term to broadly
encompass its targets and aspirations.
|
Gross margin
|
Gross profit divided by operating
revenue. Gross profit excludes income tax, PRRT, net finance costs,
other income and other expenses.
|
H1, H2
|
Halves of the calendar year (H1 is
1 January to 30 June and H2 is 1 July to 31 December).
|
HSE
|
Health, safety and
environment
|
IFRS
|
International Financial Reporting
Standards
|
JV
|
Joint venture
|
KGP
|
Karratha Gas Plant
|
Liquidity
|
Total cash and cash equivalents and
available undrawn debt facilities less restricted cash.
|
LNG
|
Liquified natural gas
|
Lower carbon
|
Woodside uses this term to describe
the characteristic of having lower levels of associated potential
GHG emissions when compared to historical and/or current
conventions or analogues, for example relating to an otherwise
similar resource, process, production facility, product or service,
or activity.
|
Lower carbon ammonia
|
Lower carbon ammonia is
characterised here by the use of hydrogen with emissions abated by
carbon, capture, and storage (CCS), with an expected ammonia
lifecycle (Scope 1, 2 and 3) carbon emissions intensity of 0.8
tCO2/tNH3 (based on contracted intensity threshold with Linde) relative
to unabated ammonia with a lifecycle (Scope 1, 2 and 3) carbon
emissions intensity of 2.3 tCO2/tNH3 (Hydrogen Europe,
2023).
|
Lower carbon portfolio
|
For Woodside, a lower carbon
portfolio is one from which the net equity Scope 1 and 2 greenhouse
gas emissions, which includes the use of offsets, are being reduced
towards targets, and into which new energy products and lower
carbon services are planned to be introduced as a complement to
existing and new investments in oil and gas. Our Climate Policy
sets out the principles that we believe will assist us achieve this
aim.
|
Lower carbon services
|
Woodside uses this term to describe
technologies, such as CCUS or offsets that could be used by
customers to reduce their net greenhouse gas emissions.
|
LSE
|
London Stock Exchange
|
Net debt
|
Interest-bearing liabilities and
lease liabilities less cash and cash equivalents.
|
Net profit attributable to equity
holders of the parent
|
Net profit after tax excluding
non-controlling interests from the Group's operations.
|
Net tangible assets
|
The Group's net assets less
goodwill, non-controlling interest and intangible
assets.
|
Net tangible assets per ordinary
security
|
Net tangible assets divided by the
number of issued and fully paid shares.
|
New energy
|
Woodside uses this term to describe
energy technologies, such as hydrogen or ammonia, that are emerging
in scale but which are expected to grow during the energy
transition due to having lower greenhouse gas emissions at the
point of use than conventional fossil fuels.
|
NGLs
|
Natural gas liquids
|
NPAT
|
Net profit after tax attributable
to equity holders of the parent
|
NWS
|
North West Shelf
|
NYSE
|
New York Stock Exchange
|
Offsets
|
The compensation for an entity's
greenhouse gas emissions within its scope by achieving an
equivalent amount of emission reductions or removals outside the
boundary or value chain of that entity.
|
Other cash cost margin
|
Other cash costs include royalties,
excise and levies, insurance, inventory movement, shipping and
direct sales costs and other hydrocarbon costs. Excludes the
marketing segment. Other cash cost margin % is calculated as other
cash costs divided by revenue from sale of hydrocarbons (excluding
marketing segment).
|
Production cost margin
|
Production cost margin % is
calculated as production costs divided by revenue from sale of
hydrocarbons. Excludes the marketing segment.
|
PRRT
|
Petroleum resources rent
tax
|
PSC
|
Production sharing
contract
|
PSE
|
Process safety event
|
Revenue from ordinary
activities
|
Revenue from the sale of
hydrocarbons, processing and services revenue and shipping and
other revenue.
|
RFSU
|
Ready for start up
|
RSSD
|
Rufisque Offshore, Sangomar
Offshore and Sangomar Deep Offshore.
|
Scope 1 GHG emissions
|
Direct GHG emissions. These occur
from sources that are owned or controlled by the company, for
example, emissions from combustion in owned or controlled boilers,
furnaces, vehicles, etc.; emissions from chemical production in
owned or controlled process equipment. Woodside estimates
greenhouse gas emissions, energy values and global warming
potentials are estimated in accordance with the relevant reporting
regulations in the jurisdiction where the emissions occur (e.g.
Australian national Greenhouse and Energy Reporting (nGER), US EPA
Greenhouse Gas Reporting Program (GHGRP)). Australian regulatory
reporting principles have been used for emissions in jurisdictions
where regulations do not yet exist.3
|
Scope 2 GHG emissions
|
Electricity indirect GHG emissions.
Scope 2 accounts for GHG emissions from the generation of purchased
electricity consumed by the company. Purchased electricity is
defined as electricity that is purchased or otherwise brought into
the organisational boundary of the company. Scope 2 emissions
physically occur at the facility where electricity is generated.
Woodside estimates greenhouse gas emissions, energy values and
global warming potentials are estimated in accordance with the
relevant reporting regulations in the jurisdiction where the
emissions occur (e.g. Australian national Greenhouse and Energy
Reporting (nGER), US EPA Greenhouse Gas Reporting Program (GHGRP)).
Australian regulatory reporting principles have been used for
emissions in jurisdictions where regulations do not yet
exist.3
|
Scope 3 GHG emissions
|
Other indirect GHG emissions. Scope
3 is a reporting category that allows for the treatment of all
other indirect emissions. Scope 3 emissions are a consequence of
the activities of the company but occur from sources not owned or
controlled by the company. Some examples of Scope 3 activities are
extraction and production of purchased materials; transportation of
purchased fuels; and use of sold products and services. Please
refer to the data table on page 72 of the Climate Transition Action
Plan and 2023 Progress Report for further information on the Scope
3 emissions categories reported by
Woodside.3
|
Significant environmental
event
|
Unplanned or undesired event
resulting in a moderate, medium-term impact on ecosystem, species,
habitat or physical or biological attributes.
|
Sustainably (including sustainable
and sustainably)
|
References to sustainability
(including sustainable and sustainably) are used with reference to
Woodside's Sustainability Committee and sustainability related
Board policies, as well as in the context of Woodside's aim to
ensure its business is sustainable from a long-term perspective,
considering a range of factors including economic (including being
able to sustain our business in the long term by being low cost and
profitable), environmental (including considering our environmental
impact and striving for a lower carbon portfolio), social
(including supporting our license to operate), and regulatory
(including ongoing compliance with relevant legal obligations). Use
of the terms 'sustainability', 'sustainable' and 'sustainably' is
not intended to imply that Woodside will have no adverse impact on
the economy, environment, or society, or that Woodside will achieve
any particular economic, environmental, or social
outcomes.
|
Target
|
Woodside uses this term to describe
an intention to seek the achievement of an outcome, where Woodside
considers that it has developed a suitably defined plan or pathway
to achieve that outcome
|
TCFD
|
Taskforce on Climate-related
Financial Disclosures
|
Tier 1 PSE
|
A typical Tier 1 process safety
event is loss of containment of hydrocarbons greater than 500 kg
(in any one-hour period).
|
Tier 2 PSE
|
A typical Tier 2 process safety
event is loss of containment of hydrocarbons greater than 50 kg but
less than 500 kg (in any one-hour period).
|
TRIR
|
Total recordable injury rate. The
number of recordable injuries (fatalities, lost workday cases,
restricted work day cases and medical treatment cases) per million
work hours
|
Underlying NPAT
|
Net profit after tax from the
Group's operations excluding any exceptional items
|
Unit production cost or
UPC
|
Production costs ($ million)
divided by production volume (MMboe)
|
US, USA
|
United States of America
|
USD
|
US dollars
|
WA
|
Western Australia
|
1.
UNEP,1992. "Convention on Biological Diversity'
https://www.cbd.int/doc/legal/cbd-en.pdf.
2. See
IFRS Foundation 2021: Climate Related Disclosures Prototype.
Appendix A. The IFRS published a further consultation document
subsequent to the 2021 prototype. As it did not contain an updated
definition of Paris-Aligned scenarios Woodside has retained use of
the previous edition.
3. World
Resources Institute and World Business Council for Sustainable
Development 2004. "GHG Protocol: a corporate accounting and
reporting standard".
Conversion factors
Product
|
Unit
|
Conversion factor
|
Natural gas
|
5,700 scf
|
1 boe
|
Condensate
|
1 bbl
|
1 boe
|
Oil
|
1 bbl
|
1 boe
|
Natural gas liquids
|
1 bbl
|
1 boe
|
|
|
|
Facility
|
Unit
|
LNG conversion factor
|
Karratha Gas Plant
|
1 tonne
|
8.08 boe
|
Pluto Gas Plant
|
1 tonne
|
8.34 boe
|
Wheatstone
|
1 tonne
|
8.27 boe
|
The LNG conversion factor from
tonne to boe is specific to volumes produced at each facility and
is based on gas composition which may change over time.
Units of measure
Term
|
Definition
|
bbl
|
barrel
|
bcf
|
billion cubic feet of
gas
|
boe
|
barrel of oil equivalent
|
CO2-e
|
carbon dioxide
equivalent
|
GJ
|
gigajoule
|
ha
|
hectare
|
Mbbl
|
thousand barrels
|
Mbbl/d
|
thousand barrels per day
|
Mboe
|
thousand barrels of oil
equivalent
|
Mboe/d
|
thousand barrels of oil equivalent
per day
|
Mcf
|
thousand cubic feet of
gas
|
MMboe
|
million barrels of oil
equivalent
|
MMBtu
|
million British thermal
units
|
MMscf
|
million standard cubic feet of
gas
|
MMscf/d
|
million standard cubic feet of gas
per day
|
Mtpa
|
million tonnes per annum
|
MW
|
megawatt
|
PJ
|
petajoules
|
scf
|
standard cubic feet of
gas
|
TJ
|
terajoule
|
tpd
|
tonnes per day
|
About this report
This Half-Year Report 2024 is a
summary of Woodside's operations, activities and financial position
as at 30 June 2024. Woodside Energy Group Ltd (ABN 55 004 898 962)
is the parent company of the Woodside group of companies. In this
report, unless otherwise stated, references to 'Woodside', 'the
company', 'the Group', 'we', 'us' and 'our' refer to Woodside
Energy Group Ltd and its controlled entities as a whole. The text
does not distinguish between the activities of the parent company
and those of its controlled entities.
References to 'H1' refer to the
first half of the year, i.e. the period between 1 January 2024 and
30 June 2024. All dollar figures are expressed in US currency
unless otherwise stated. Production and sales volumes, reserves and
resources are quoted as Woodside share. A glossary of key terms,
units of measure and conversion factors is on pages 53 -
55.
This report should be read in
conjunction with the Annual Report 2023 and the Climate Transition
Action Plan and 2023 Progress Report available at
woodside.com.
Forward looking statements
This report 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, outcomes of
transactions, including the timing, terms and potential benefits of
the proposed acquisition of Tellurian and OCI's Clean Ammonia
Project, statements regarding long-term demand for Woodside's
products, development, completion and execution of Woodside's
projects, expectations regarding future capital expenditures, the
payment of future dividends and the amount thereof, future results
of projects, operating activities and 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, capital and
exploration expenditure and gas hub exposure, and expectations
regarding the achievement of Woodside's net equity Scope 1 and 2
greenhouse gas emissions reduction and new energy investment
targets and other climate and sustainability goals.
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', 'aspire', '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
report 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 officers, directors, employees, advisers or
representatives.
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's
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, the actions of third parties, project
delay or advancement, regulatory approvals, the impact of armed
conflict and political instability (such as the ongoing conflict in
Ukraine and in the Middle East) on economic activity and oil and
gas supply and demand, cost estimates, the effect of future
regulatory or legislative actions on Woodside or the industries in
which it operates, including potential changes to tax laws, the
impact of general economic conditions, inflationary conditions,
prevailing exchange rates and interest rates and conditions in
financial markets, and risks associated with acquisitions, mergers
and joint ventures, including difficulties integrating businesses,
uncertainty associated with financial projections, restructuring,
increased costs and adverse tax consequences, and uncertainties and
liabilities associated with acquired and divested properties and
businesses.
In addition to the summary of
'Principal risks and uncertainties' on page 16 of this report, 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 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 report.
If any of the assumptions on which
a forward-looking statement is based were to change or be found to
be incorrect, this would likely cause outcomes to differ from the
statements made in this report.
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. None
of Woodside nor any of its related bodies corporate, nor any of
their respective officers, directors, employees, advisers or
representatives, nor any person named in this report or involved in
the preparation of the information in this report, makes any
representation, assurance, guarantee or warranty (either express or
implied) as to the accuracy or likelihood of fulfilment of any
forward-looking statement, or any outcomes, events or results
expressed or implied in any forward-looking statement in this
report.
All forward-looking statements
contained in this report reflect Woodside's views held as at the
date of this report and, except as required by applicable law,
Woodside does not intend to, undertake to, or assume any obligation
to, provide any additional information or update or revise any of
these statements after the date of this report, either to make them
conform to actual results or as a result of new information, future
events, changes in Woodside's expectations or otherwise.
Past performance (including
historical financial and operational information) is given for
illustrative purposes only. It should not be relied on as, and is
not necessarily, a reliable indicator of future performance,
including future security prices.
Non-IFRS Measures
Throughout this report, 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 excluding impairment, Gearing, Underlying NPAT, Net debt,
Liquidity, Free cash flow, Capital expenditure, Exploration
expenditure, Return on Equity, Return on average capital employed,
Cash margin, Production cost margin, Other cash cost margin, Net
tangible assets and Net tangible assets per ordinary security.
These Non-IFRS Financial Measures are defined in the glossary on
pages 53 - 55 of this report. A quantitative reconciliation of
these measures to the most directly comparable financial measure
calculated and presented in accordance with IFRS can be found in
the Alternative Performance Measures section of this report on
pages 50 - 52.
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 report
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.
Climate strategy and emissions data
All greenhouse gas emissions data
in this report are estimates, due to the inherent uncertainty and
limitations in measuring or quantifying greenhouse gas emissions,
and our methodologies for measuring or quantifying greenhouse gas
emissions may evolve as best practices continue to develop and data
quality and quantity continue to improve.
Woodside "greenhouse gas" or
"emissions" information reported are net equity Scope 1 greenhouse
emissions, Scope 2 greenhouse emissions, and/or Scope 3 greenhouse
emissions, unless otherwise stated.
For more information on Woodside's
climate strategy, including references to 'lower carbon' and 'lower
carbon services' as part of that strategy, and emissions data,
refer to Woodside's Climate Transition Action Plan and 2023
Progress Report available at woodside.com.
No express or implied prices
This report does not include any
express or implied prices at which Woodside will buy or sell
financial products.
This announcement was approved and authorised for release by
Woodside's Disclosure Committee.