Woodside shares rally as Q2 result meets estimates
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More news: Woodside shares climbed in morning trade after the oil giant reported its production figures for the June quarter, broadly meeting market estimates.
Woodside shares were up 1.6% to $25.25 at 11:30am AEST, extending gains of around 32% since early April.
Citi analyst Paul McTaggart said stronger output from Woodside's oil and gas field in Senegal offset weaker overall liquified natural gas production.
McTaggart said he expected a "net negative market reaction" after a strong underlying result but pre-tax decommissioning provisions of US$400 million ($610 million) to US$500 million were a "negative surprise".
Woodside revenue slides in Q2 2025 even as production lifts
The news: Fossil fuel producer Woodside reported a 1% fall in revenue in the second quarter of 2025 compared to the first quarter even as production improved by 2%.
The numbers: Quarterly production in Q2 of 2025 hit 50.1 millions of barrels of oil equivalent (MMboe), which is a 2% increase from the previous quarter. This is a 13% increase year-on-year.
Revenue reached just under USD3.28 million, which is a 1% decline on the previous quarter but an 8% improvement year-on-year.
The production guidance range for financial year 2025 revenue has also been narrowed to between 188MMboe and 195MMboe. It was previously between 186MMboe and 196MMboe.
The unit production cost guidance range has been lowered to between $8 and $8.50 per boe. It was previously between $8.50 to $9.20.
Woodside is also expecting to take an impairment loss pre-tax of about $140 million ($110 million post-tax) following the decision to exit the H2OK liquid hydrogen project in Oklahoma.
During the quarter, the company completed the sell-down of a 40% interest in its Louisiana LNG Infrastructure to US investment firm Stonepeak has raised around USD1.9 billion.
Woodside also issued USD3.5 billion of senior unsecured bonds in the US market, which was heavily oversubscribed.
The context: Woodside chief executive Meg O’Neill said “strong production was delivered from our diverse portfolio of high-quality assets” and that a focus on cost control has enabled cost guidance to be lowered.
She said the decision to exit the H2OK Project demonstrates the company’s “disciplined approach to portfolio management”.
The sources: ASX, Citi research
