Woodside Energy's profit for the year is at its lowest level in three years due to low oil and gas prices

Woodside Energy, a major oil and gas company, reported on Tuesday its lowest annual profit in the last three years, due to lower realized prices. However, it maintained its production forecast for 2025, based on expectations that demand for liquefied gas will be strong.

The energy markets were affected by geopolitical events that occurred in the past year. Slowing global growth, and a softening of demand from China's top consumer also pushed down commodity prices.

Woodside's average realized price for its products is $63.60 per bar of oil equivalent. This is a 7% decrease from last year.

This resulted in a decrease of the net profit underlying for the full year, from $3.32 billion to $2.88. Woodside had its lowest annual profit since 2021. However, it beat Visible Alpha's consensus estimate of $2.8 billion.

The company announced a final dividend per share of 53 cents, down from 60 cents each last year.

Australia's largest oil and gas producer has maintained its fiscal 2020 production forecast between 186 to 196 million barrels equivalent.

Woodside, according to Chief Executive Meg O'Neill, will remain a reliable energy supplier, despite the robust LNG demand forecasts for the Asia Pacific region and the structural shortfalls predicted in the near future for both the East Coast and Western Australian gas markets.

The company reaffirmed that its forecast for capital expenditures is between $4.5 and $5.0 billion. This excludes the Louisiana LNG Project, which it acquired in 2024.

Woodside had been reported to have held discussions with several potential investors of stakes in the Louisiana LNG project. These included Tokyo Gas, Japan’s JERA, and Saudi Aramco’s MidOcean Energy.

O'Neill stated on Tuesday that "we are moving towards a readiness for a decision to be made (on Louisiana LNG) in the first quarter 2025." (Reporting and editing by Shounak dasgupta in Bengaluru)

(source: Reuters)