Australia's Woodside Withdraws $5 Billion New Energy Investment Target

en.Wedoany.com Reported - On August 25, Woodside Energy withdrew its target of investing $5 billion in new energy products and low-carbon services by 2030, and adjusted its Scope 3 target related to product end-use emissions. The company shifted its capital allocation focus to oil, gas, and LNG operations, while retaining its target of reducing net Scope 1 and Scope 2 emissions from operations by 30% by 2030 compared to baseline levels.

Woodside Energy's interim report for 2026, released concurrently, showed underlying net profit of $1.334 billion for the first half, up 7% year-on-year; statutory net profit rose to $1.672 billion, up 27% year-on-year; and revenue reached $7.446 billion, up 13% year-on-year. Driven by oil and gas supply disruptions from Middle East conflicts and rising customer demand, the company's average realized price rose to $74 per barrel of oil equivalent from $61.7 in the same period last year.

In the first half, Woodside Energy produced 86.5 million barrels of oil equivalent, down 13% year-on-year, with operating cash flow of $3.013 billion and free cash flow increasing to $352 million. The company raised its interim dividend from 53 cents to 57 cents per share, while maintaining its 2026 production guidance of 174 to 185 million barrels of oil equivalent and capital expenditure plan of $4 billion to $4.5 billion.

As part of the business adjustment, Woodside Energy will conduct a strategic review of the Beaumont New Ammonia project in Texas, USA. The project has a transaction value of $2.35 billion, with an ammonia design capacity of 1.1 million tonnes per year. First production was achieved in December 2025, and Woodside Energy took over operations in March 2026. The project produced 279,000 tonnes of ammonia in the first half, with an average capacity utilization rate of approximately 69% in the second quarter due to third-party feedstock supply constraints; the low-carbon ammonia production target has been adjusted to 2027, pending the commissioning of Linde's low-carbon hydrogen facility, the startup of ExxonMobil's carbon capture and storage facility, and relevant permits.

The company plans to cut costs by $350 million annually starting in 2028. Its key growth projects continue to advance: Australia's Scarborough energy project is 98% complete, with first LNG cargo planned for the fourth quarter of 2026; the US Louisiana LNG project is 28% complete, targeting first LNG production in 2029; and Mexico's Trion deepwater oil field project is 64% complete, targeting first oil in 2028.