Record Annual Production
Achieved record full-year production of 198.8 million barrels of oil equivalent, exceeding guidance and driven by Sangomar and portfolio reliability.
Woodside Energy Group
· WDS
February 23rd, 2026
Summary
- Earnings Call Date:
- 2026-02-23
- Change Since:
- +2.03%
- Next Earnings Date:
- 2026-08-25
Earnings Call Sentiment
PositiveThe call presented a strong operational and financial performance in 2025 with multiple high‑impact project milestones (record production, Scarborough 94% complete, Louisiana LNG FID and partner sell‑downs), robust balance sheet metrics and achievement of sustainability targets. Near‑term challenges were acknowledged — a capital‑intensive transition year (Pluto turnaround, dry docks), tax (PRRT) and production timing uncertainty (Sangomar decline), decommissioning spend and some margin volatility in marketing. On balance, the company emphasised disciplined capital management, liquidity and partner‑led de‑risking which materially mitigate execution and funding risks.
Company Guidance
Guidance and near‑term priorities: 2026 is a transition year with a major Pluto turnaround in Q2 2026 and Scarborough on track for first LNG cargo in Q4 2026 (Scarborough 94% complete at year‑end); Trion is ~50% complete targeting first oil in 2028; Louisiana LNG (three‑train, 16.5 mtpa) was 22% complete at year‑end and is targeting first LNG in 2029 with Woodside’s expected share of total CapEx now ~$9.9bn (below 60%) and Stonepeak funding ~75% of 2025–26 project CapEx; 2026 decommissioning spend is guided to ~$500–800m; 2025 metrics to note that underpin guidance include record production of 198.8 million boe, unit production costs of $7.80/boe (4% reduction y/y), free cash flow of $1.9bn, underlying NPAT of $2.6bn, cash breakeven of < $34/bbl, liquidity of $9.3bn and gearing of 18.2% (target range 10–20%); the company has hedged ~18 million barrels for 2026 at ~ $70/bbl, ~75% of LNG volumes for 2026–28 are contracted, and the Board declared a final dividend of $0.59/share (total FY dividend $1.12/share; 80% payout ratio); sustainability target of 15% net equity Scope 1 & 2 GHG reduction for 2025 was achieved.
Sangomar Operational Excellence
Sangomar delivered nameplate ~100,000 bbl/day for most of the year at almost 99% reliability, contributing $2.6 billion to Woodside EBITDA since startup and prompting consideration of a potential Phase 2.
Strong Financial Results and Cash Generation
Underlying net profit after tax of $2.6 billion; generated $1.9 billion of free cash flow during a period of elevated capex; EBITDA margin above 70%.
Shareholder Returns and Payout Discipline
Board declared a final dividend of $0.59 per share bringing total fully franked FY dividend to $1.12 per share (total dividends reported $2.1 billion), representing an 80% payout ratio of underlying NPAT (top end of target range).
Unit Cost Reduction and Cash Breakeven
Reduced unit production costs by 4% to $7.80 per boe and reported an average cash breakeven of less than $34 per barrel, improving resilience to lower prices.
Progress on Scarborough
Scarborough Energy project 94% complete at year-end, on track for first LNG cargo in Q4 2026; major milestones included FPU assembly and arrival, completion of drilling for all 8 development wells, tie-in to Pluto export line and remote operations commissioning.
Louisiana LNG Sanction and De‑risking
Took FID for the three‑train, 16.5 mtpa Louisiana LNG project; project 22% complete and targeting first LNG in 2029. Strategic sell‑downs (Stonepeak, Williams) reduced Woodside's expected capital commitment to ~$9.9 billion (<60% of total project cost).
Trion and Other Growth Progress
Trion 50% complete at year-end with first oil targeted in 2028; lifting of first FPU module completed and drilling campaign preparations underway.
Contracting and Portfolio offtake
Contracted 4.7 million tonnes of new LNG supply to Tier 1 customers; approximately 75% of LNG volumes for 2026–2028 contracted, providing portfolio resilience and diversification.
Balance Sheet and Liquidity
Gearing at 18.2% (within 10–20% target range) and closing liquidity of $9.3 billion, supporting credit rating (BBB+) while funding growth and distributions.
Sustainability and Emissions Target Met
Achieved 2025 net equity Scope 1 & 2 greenhouse gas emissions target (15% reduction vs base); gross equity Scope 1 & 2 emissions fell year-on-year despite higher production and reliance on fewer carbon credits.
Safety Performance
Delivered strong safety outcomes with no high‑consequence injuries, Sangomar recorded no recordable injuries in first 18 months, and Scarborough FPU construction marked 3 years without a lost time incident.
Beaumont New Ammonia First Production
Beaumont achieved first ammonia in December 2025; ramp-up underway with offtakes for conventional ammonia and targeting lower-carbon ammonia (H2 2026) as CCS and hydrogen supply come online.
Operator
Thank you for standing by, and welcome to the Woodside Energy Group Limited Full Year 2025 results. [Operator Instructions]. I would now like to hand the conference over to Liz Westcott, Acting Chief Executive Officer. Please go ahead.
Elizabeth Westcott
Good morning, and welcome to Woodside's 2025 Full Year Results Presentation. We are presenting from Sydney, and I would like to begin by acknowledging the traditional custodians of this land, the Gadigal people of the Eora nation, and pay my respects to their elders past and present. Today, I'm joined on the call by our Chief Financial Officer, Graham Tiver. Together, we will provide an overview of our full year 2025 performance before opening up to Q&A. Please take time to read the disclaimers, assumptions and other important information. And I'd like to remind you that all dollar figures in today's presentation are in U.S. dollars, unless otherwise indicated. I am very pleased to present an outstanding set of full year results today, which highlight the disciplined execution of our strategy throughout 2025.
We delivered on our commitments, leveraging our track record of operational excellence, world-class project execution and financial discipline to reward our shareholders today while positioning Woodside for future value and growth. In 2025, we achieved record annual production of 198.8 million barrels of oil equivalent, exceeding our full year guidance range. This was driven by the exceptional performance at Sangomar and world-class reliability across our operating portfolio. We progressed major cash-generative growth projects to budget ...
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