HOUSTON, TEXAS (Editors at Energy Analytics Institute, 25.Feb.2025) — Australia’s Woodside Energy reported record production of 193.9 million barrels of oil equivalent (MMboe), or 530 Mboe/day, for the full year 2024. The result was underpinned by outstanding early production performance at Sangomar offshore Senegal and world-class reliability at operated LNG assets, the company said in its 2024 year-end financial press release.
Net profit after tax (NPAT) was $3,573mn in 2024, up 115% compared to 2023. Underlying NPAT decreased 13% from the previous year to $2,880mn, primarily due to lower realized oil and gas prices, Woodside said on 25 Feb. 2025 in the press release.
Woodside’s directors have determined a final dividend of $0.53 per share, which brings the full-year fully franked dividend to $1.22 per share and maintains payout ratio at the top of the target range at 80%. The value of the full-year dividend is $2,316mn.
Woodside CEO Meg O’Neill said her company was set to become a highly cash generative business.
“Our proven track record of operational excellence, disciplined investment decisions and world-class project execution is delivering near-term rewards for our shareholders while laying the foundations for a new chapter of value creation. In 2024, the record annual production was at the top end of the full-year guidance range, underpinned by consistently strong 98% reliability at our operated LNG facilities,” O’Neill said in the press release.
“Unit production cost of $8.10/boe was down 2% from 2023, underlining operational discipline and the resilience of the base business in a period of inflationary pressures. Woodside’s operating cash flow was strong at $5.8 billion and the cash margin was 82%, up from 80% in 2023,” she said.
Senegal: Sangomar
At Woodside’s Sangomar project offshore Senegal, production has ramped up to nameplate capacity of 100 Mboe/d within nine weeks of its Jun. 2024 startup. The project achieved 94% reliability in the fourth-quarter 2024.
“Sangomar’s contribution of 12.9 million boe of sales generated around $950 million in revenue, demonstrating the project’s value,” O’Neill said.
Woodside continues to strengthen is relationships with the government of Senegal and is evaluating options for a phase 2 development.
Australia: Scarborough project
The Scarborough energy project is now 80% complete and on track for first LNG cargo in 2026.
Fabrication of the FPU topsides structure complete and pre-commissioning works underway while the FPU hull is in a second dry dock in preparation for topsides integration. Trunkline installation was completed in Oct. 2024 while batch drilling of development wells is ongoing.
LNG Japan acquired a 10% non-operating participating interest in the Scarborough joint venture for $910mn and JERA acquired a 15.1% non-operating participating interest in the Scarborough JV for $1.4 bn.
These transactions reflect the long-term value that premium LNG customers in Japan are placing on energy security, O’Neill said.
“During the year Woodside signed three agreements for the long-term sale of LNG to customers in Japan, Korea and Taiwan. These agreements demonstrate the value that regional energy customers place on security and certainty of supply, and the ongoing role of LNG in balancing our customers’ energy security and decarbonization needs,” O’Neill said.
Additionally, Woodside simplified its Australian portfolio and consolidated its focus on operated LNG assets by entering into an asset swap agreement with Chevron.
“The asset swap provides Woodside with the opportunity to realign its Australian interests to provide greater commercial certainty and enhance development prospects,” O’Neill said.
Mexico: Trion
The Trion project located offshore Mexico is progressing on budget and more than 20% completed. Woodside continues to target first oil in 2028.
Woodside has awarded and executed contracts for all major scopes. Additionally, the FPU EPC scope was converted to a lump sum contract. First steel at the FPU was cut in Nov. 2024.
State-owned Pemex is the only other partner in Trion.
US: Louisiana LNG and Beaumont New Ammonia
Woodside made 2 acquisitions in 2024 that aim to deliver long-term profitability and cash flow. These investments were in Louisiana LNG and Beaumont New Ammonia.
Louisiana LNG is an advantaged US Gulf Coast project, fully permitted for 27.6 MTPA of LNG production, with a competitively priced EPC contract with Bechtel and with civil works largely de-risked. This compelling opportunity is attracting interest from high-quality partners, and we are progressing towards readiness for a final investment decision from the first quarter of 2025,” O’Neill said.
Louisiana LNG, formerly Driftwood LNG, will expand Wooside’s Atlantic basin sales volumes and position the company among the world’s largest LNG portfolio players.
The Beaumont New Ammonia project is 83% complete. First ammonia projected is targeted for the second-half 2025 with lower carbon ammonia production targeted for the second-half 2026. Phase 1 has a design capacity to production 1.1 MTPA of ammonia with a unit cash costs of production of $260-$300/tonne.
“The Beaumont New Ammonia Project demonstrates Woodside’s disciplined investment in assets which can generate sustained shareholder returns. The project is set to provide strong cash flows at current ammonia pricing and positions Woodside to be an early mover in the growing global market for premium lower-carbon ammonia once the associated carbon capture and storage (CCS) facility comes online,” O’Neill said
“The Beaumont acquisition also represents material progress towards achieving our Scope 3 targets, with the potential to abate up to 1.6 million tonnes per annum carbon dioxide equivalent of customer emissions when CCS is online. With construction at Beaumont now 83% complete, we are targeting the startup of ammonia production in the second half of this year and lower-carbon ammonia production in the second half of 2026,” O’Neill said.
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By Editors at Energy Analytics Institute. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
