Woodside Profit Rises 4% as Output Surge Offsets Price Slump

Woodside Energy Group Ltd., Australia’s biggest oil and gas producer, said first-half profits rose as record output from its expanded portfolio helped to offset a downturn in oil and gas prices.

(Bloomberg) — Woodside Energy Group Ltd., Australia’s biggest oil and gas producer, said first-half profits rose as record output from its expanded portfolio helped to offset a downturn in oil and gas prices.

Underlying earnings rose 4% to $1.9 billion in the six months to June 30, the Perth-based producer said Tuesday in a statement. Production jumped by two-thirds after the addition of BHP Group Ltd.’s energy unit in a deal completed last year.

“Production for the first half was a record at 91.3 million barrels of oil equivalent,” Chief Executive Officer Meg O’Neill said in the statement. Woodside is advancing its Trion oil development off Mexico, working on additional gas projects and preparing investment decisions on a hydrogen project in Oklahoma and a solar farm in Australia, she said.

Major energy producers, including Shell Plc and Chevron Corp., have reported weaker profits after natural gas prices tumbled from last year’s record high, and following a decline in crude. Efforts by gas importers to refill stockpiles and cut consumption has curbed fears of acute shortages which gripped the market following Russia’s invasion of Ukraine.

Woodside is currently locked in negotiations with workers at its key North West Shelf liquefied natural gas operation in Western Australia. The Offshore Alliance, a group representing two major labor unions, said members will launch strike action if an agreement isn’t reached in new talks Wednesday. 

Traders are carefully monitoring possible industrial action at Australian LNG plants, including Chevron Corp. facilities, which threaten to disrupt exports and tighten global supply. Strike action could begin at Woodside’s operation as early as Sept. 2.

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