Key Highlights

  • The 57 US cent fully franked interim dividend, about A$0.796 a share, was paid on 25 September 2026.
  • It represented 80 per cent of first-half underlying NPAT of US$1,334 million.
  • Gearing was 20.6 per cent, slightly above the 10 to 20 per cent target range.
  • Higher realised prices linked to Middle East Supply disruption benefited the half.

Woodside Energy Group Ltd (ASX:WDS) paid a fully franked Interim Dividend of 57 US cents a share in September 2026, and the half-year result behind that payment remains a key reference point for anyone assessing the drivers of the Woodside share price. The company reported net profit after tax (NPAT) of US$1,672 million and underlying NPAT of US$1,334 million for the six months to 30 June 2026, a period in which, according to Woodside, the Middle East conflict disrupted global LNG and oil supply. With the September quarter now reported and Capital Markets Day scheduled for 5 November 2026, investors have a fuller picture of how the second half is tracking.

The Interim Dividend in Detail

Woodside's Half-Year Report, lodged with the ASX on 25 August 2026, determined a fully franked interim dividend of 57 US cents per share. The payout represented 80 per cent of underlying NPAT and totalled US$1,084 million.

The shares traded ex-dividend on 3 September 2026, the Record Date was 4 September 2026 and the dividend was paid on 25 September 2026. For Australian dollar payments, Woodside applied an Exchange Rate of AUD/USD 0.715790, giving an amount of about A$0.796 per share. The company's Dividend reinvestment plan remained suspended, so the full amount was paid in cash.

Woodside's third quarter report confirmed the cash impact, recording payment of the US$1,084 million dividend during the September quarter.

What Drove First-Half Profit

Operating revenue was US$7,446 million, supported by an average realised price of US$74.0 per Barrel of Oil Equivalent (boe). The Half-Year Report said the Middle East conflict "disrupted the global supply of LNG and oil", resulting in higher Commodity prices and increased customer demand, while noting that the full impact of higher LNG prices had not yet been realised because of lagged pricing mechanisms.

Production for the half was 86.5 million barrels of oil equivalent (MMboe), or 478 thousand barrels of oil equivalent per day, with unit production costs of US$8.8/boe. Production costs totalled US$749 million.

Reliability supported those volumes. Woodside's operated LNG facilities achieved 98.7 per cent reliability over the half, Sangomar 99.5 per cent and Shenzi in the Gulf of America 99.1 per cent. The company also completed a planned turnaround campaign at Pluto LNG on schedule and within budget, with more than 400,000 hours worked and no lost-time injuries.

EBITDA from the underlying base Business was US$4,647 million. Operating Cash Flow was US$3,013 million and free cash flow US$352 million, the latter including US$1,725 million of capital contributions from Louisiana LNG partners Stonepeak and Williams.

Reported Versus Underlying Profit

The gap between reported NPAT of US$1,672 million and underlying NPAT of US$1,334 million reflected a net adjustment of US$338 million. Woodside removed the benefit from recognising deferred tax Assets relating to Pluto petroleum resource rent tax and US income tax, and added back post-tax impairments.

Pre-tax impairments totalled US$178 million. Of that, US$135 million related to the Calypso exploration asset following the decision to sell Woodside's 70 per cent operated interest to bp, and US$43 million related to the H2OK hydrogen project, which is being retired.

Because Woodside's dividend policy references underlying NPAT, the adjustments matter. The 57 US cent payment was calculated on the US$1,334 million figure rather than reported profit.

Guidance Set at the Half-Year

Alongside the result, Woodside tightened its 2026 production guidance to 174 to 185MMboe, from a previous range of 172 to 186MMboe, while leaving capital expenditure, exploration, abandonment, production cost and Depreciation guidance unchanged. Two months later, the third quarter report narrowed production guidance again, to 174 to 181MMboe, because of lower expected volumes from Beaumont New Ammonia and the Okha facility.

For dividend purposes, the franking attached to the interim payment is also relevant. A fully Franked Dividend carries credits for Australian company tax already paid, which eligible Australian resident shareholders can use under the imputation system.

Balance Sheet and Gearing

Woodside reported gearing of 20.6 per cent at 30 June 2026, marginally above its target range of 10 to 20 per cent. The company attributed this to US$655 million of new Lease liabilities, a US$419 million net cash outflow from hedge settlements and a US$101 million increase in trade receivables. Liquidity was US$8,189 million.

By 30 September 2026, net Debt including leases was about US$8.9 billion and liquidity about US$7.8 billion, after the dividend payment and the repayment of an US$800 million bond. Capital Expenditure for the half was US$1,637 million, with full-year guidance unchanged at US$4.0 to US$4.5 billion.

How the Second Half Is Tracking

The September quarter provides an early read on the period that will determine the final dividend. Production rose 12 per cent on the June quarter to 46.2MMboe, Operating Revenue increased to US$4,281 million and the average realised price was US$84/boe, above the first-half average.

Against that, Woodside narrowed 2026 production guidance to 174 to 181MMboe and continues to record hedging costs, with year-to-date hedge settlements producing a net cash outflow of about US$565 million. A Tier 1 process safety event at Beaumont New Ammonia also curtailed output there.

First LNG from Scarborough, targeted for the December quarter, will add volumes late in the year, although most of the project's contribution will fall in later periods. Woodside has also scheduled Capital Markets Days in Australia on 5 November and in New York on 12 November 2026.

Key Takeaways

Woodside's 57 US cent fully franked interim dividend, about A$0.796 a share at the applied exchange rate, was paid on 25 September 2026 and represented 80 per cent of first-half underlying NPAT of US$1,334 million. The half benefited from higher realised prices linked to Middle East supply disruption, while gearing moved slightly above the target range. For those following the Woodside share price, the measurable items for the final dividend are second-half underlying profit, realised oil and LNG prices, hedging outcomes, gearing relative to the 10 to 20 per cent target and the timing of Scarborough's first cargo.