Woodside Energy reported a net profit after tax of $1.67 billion for the first half of 2026. This is a 27% increase from the same period last year. The rise was due to higher oil and LNG prices, which helped offset a 13% decline in production. The average realized price for Woodside's products increased by 20% to $74 per barrel of oil equivalent. This increase was driven by tighter global energy markets, according to the company.
Key Details
Production fell to 86.5 million barrels of oil equivalent, or 478,000 boe per day. This is down from 99.2 million boe a year earlier. The decline was caused by disruptions from cyclones, a planned turnaround at Pluto LNG, and the sale of Woodside's Greater Angostura assets. Operating revenue rose 13% to $7.45 billion. Underlying profit increased 7% to $1.33 billion. Operating cash flow decreased by 10% to $3.01 billion. However, free cash flow improved to $352 million from $136 million.
Woodside declared a fully franked interim dividend of 57 U.S. cents per share. This is up from 53 cents a year earlier and represents 80% of underlying profit. The company narrowed its 2026 production guidance to a range of 174 million to 185 million boe. Capital expenditure guidance remains unchanged at $4 billion to $4.5 billion. Major growth projects, including the Scarborough Energy Project in Western Australia, are progressing. Completion is expected in the fourth quarter of 2026.
Background
Market analysts are speculating about a potential takeover bid. Exxon Mobil shows interest amid changes in Woodside's boardroom. The company’s share price rose by 2.5% following the profit announcement. This reflects investor optimism about future growth and ongoing projects.
Related coverage: Vast Resources Shares Jump 59% After Gulf Minerals Deal, Ping An Reports 36% Profit Increase Driven by Investments.
Woodside's profit increase and dividend hike may boost investor confidence in the energy sector. This is especially true for oil and gas stocks. Higher oil prices are likely to support further gains in related equities. Investors will watch for updates on the Scarborough gas development, which is set to begin shipping LNG later this year.
Based on reporting by: oilprice.com, forbes.com