Woodside Energy First-Half Profit Falls 24% Amid Hydrogen Exit, Decommissioning Costs

Woodside Energy reported a 24% decline in its first-half underlying profit to approximately $1.25 billion, primarily due to lower commodity prices, impairment charges, and decommissioning costs. The company booked a $143 million impairment related to its exit from the US H2OK hydrogen project and a $430 million provision for decommissioning oil and gas fields. Despite a 10-11% rise in production and a 10% increase in revenue to about $6.59 billion, higher depreciation and restoration expenses offset gains. Woodside declared a reduced interim dividend of US53¢ per share, down from US69¢ last year, maintaining a payout ratio of around 80%. The company is also engaged in ongoing discussions with the Australian government regarding a proposed 40-year life extension for the North West Shelf gas project, amid stalled talks over environmental conditions. Woodside is progressing with major projects like the Beaumont ammonia project in Texas and the Scarborough natural gas project offshore Australia, aiming to support future earnings growth.