Key points

  • The Scarborough Energy Project was 98% complete at 30 June 2026, excluding Pluto Train 1 modifications, with first LNG cargo targeted for the fourth quarter of 2026.
  • Woodside reported first-half 2026 net profit after tax of US$1.672 billion and underlying NPAT of US$1.334 billion.
  • Louisiana LNG’s foundation development was 28% complete at the end of the half, with first LNG targeted for 2029.
  • Woodside maintained 2026 Capital Expenditure guidance of US$4.0 billion to US$4.5 billion as it progresses several large developments.

Woodside Energy Group Limited (ASX:WDS) is an Australian energy company with operations spanning LNG, pipeline gas, oil and emerging lower-carbon opportunities. Its first-half 2026 report places project delivery at the centre of its growth plans, with Scarborough approaching start-up while Louisiana LNG and Trion progress through construction. The scale and timing of these projects mean execution will have a significant influence on future production, capital requirements and cash generation.

First-half Earnings and production

For the six months ended 30 June 2026, Woodside reported Operating Revenue of US$7.446 billion, up 13% from the corresponding period. Net profit after tax attributable to shareholders increased 27% to US$1.672 billion, while underlying NPAT rose 7% to US$1.334 billion.

Total production was 86.5 million barrels of oil equivalent, or 478 thousand barrels of oil equivalent per day. This was 13% lower than the first half of 2025, reflecting factors including cyclone impacts, the planned Pluto turnaround and portfolio changes.

Woodside generated US$3.013 billion of Operating Cash Flow and US$352 million of free cash flow during the half. The board determined a fully franked Interim Dividend of 57 US cents per share, representing 80% of underlying NPAT.

Scarborough approaches first LNG

The Scarborough Energy Project in Western Australia was 98% complete at the end of the first half, excluding Pluto Train 1 modifications. First LNG cargo remains targeted for the fourth quarter of 2026.

The development includes the Scarborough gas field, a floating production unit, subsea infrastructure and expansion of the Pluto LNG Facility through a second LNG train. Modifications to Pluto Train 1 will also allow it to process Scarborough gas.

During the half, all Upstream infrastructure was put in place. After the reporting period, the floating production unit achieved ready-for-start-up status and first gas. Construction and commissioning at Pluto Train 2 also continued, including work on power systems and liquefaction compressors.

Woodside holds a 74.9% participating interest in Scarborough, 51% in Pluto Train 2 and 90% in Pluto Train 1.

The remaining commissioning and start-up process therefore represents an important near-term execution milestone. Delays at this stage could defer production and cash receipts, while delivery to schedule would move Scarborough from a major Capital Project into an operating asset.

Louisiana LNG is the next major development

Louisiana LNG is an under-construction LNG production and export terminal near Lake Charles in the United States. The overall development has permitted capacity of 27.6 million tonnes per annum across five trains, although the approved foundation phase consists of three trains with combined capacity of 16.5 million tonnes per annum.

At 30 June 2026, the foundation development was 28% complete. Train 1 was 35% complete, Train 2 was 25% complete and Train 3 was 18% complete. First LNG is targeted for 2029.

Construction during the half included structural-steel erection, above-ground piping, LNG tank work and marine infrastructure. Woodside also highlighted supply-chain risks associated with disruption in the Middle East and said mitigation measures were being assessed to support planned construction schedules.

The project also involves external capital. Stonepeak agreed to acquire a 40% interest in Louisiana LNG Infrastructure and committed up to US$5.7 billion toward the foundation development. By 30 June 2026, US$4.262 billion had been received under this arrangement.

Capital requirements remain substantial

Woodside maintained full-year 2026 capital expenditure guidance of US$4.0 billion to US$4.5 billion. Capital expenditure in the first half was US$1.637 billion.

At 30 June, the group had US$9.699 billion of contracted capital commitments not yet provided for in the financial statements, predominantly related to Louisiana LNG and Trion. Louisiana LNG accounted for US$8.170 billion of these commitments, shared among Woodside, Stonepeak and Williams according to their respective interests.

This scale of spending makes schedule and cost control important. LNG projects require large upfront Investment before commercial production begins, so timing changes can affect both project returns and group cash flow.

Trion adds another execution milestone

Woodside is also progressing the Trion oil project offshore Mexico. Trion was 64% complete at the end of the first half, with first oil targeted for 2028.

Drilling of the planned 24 subsea wells commenced in March 2026, with three production wells drilled during the period. Construction and pre-commissioning of the floating production unit also advanced.

Woodside holds a 60% participating interest in Trion, adding another large development to the company’s capital and execution program.

Risks around the development pipeline

Project delivery risks include construction delays, contractor performance, equipment availability, supply-chain disruption, labour availability and cost inflation. Louisiana LNG’s exposure to steel-supply risks provides one current example.

Commodity prices remain another key variable. Woodside’s average realised price increased 20% to US$74.0 per Barrel of Oil Equivalent in the first half, while geopolitical developments affected oil and LNG markets.

The Balance Sheet also requires monitoring as development spending continues. At 30 June 2026, Woodside had US$4.339 billion of cash and cash equivalents, US$8.189 billion of Liquidity and gearing of 20.6%, marginally above its target range of 10% to 20%.

What to watch next

Scarborough’s first LNG cargo remains the most immediate project milestone, with the company targeting the fourth quarter of 2026. Investors can also monitor the pace of commissioning at Pluto Train 2 and the subsequent production ramp-up.

For Louisiana LNG, construction progress across all three trains, supply-chain management, further sell-down activity and LNG offtake arrangements will remain important.

Woodside maintained full-year production guidance of 174 million to 185 million barrels of oil equivalent.

With Scarborough close to completion and Louisiana LNG and Trion still requiring significant investment, project execution is likely to remain an important Factor in Woodside’s production profile, cash flow and capital requirements over the remainder of the decade.