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Highlights

  • Woodside shares rise nearly 4% to AU$20.47 following Q1 update.

  • Q1 production hit 49.1 MMboe, with Sangomar delivering 78,000 barrels/day at 98% reliability.

  • Quarterly revenue reaches US$3.3 billion despite weather disruptions and unplanned outages.

Woodside Energy Group Ltd (ASX:WDS) saw its shares climb nearly 4% to AU$20.47 in Wednesday morning trading, following the release of a robust first quarter operational update that was well-received by investors.

Despite some production headwinds, the energy major delivered a significant performance during the March quarter, underpinned by output from its newly operational Sangomar field and ongoing progress across its growth projects.

Quarterly Production and Revenue

Woodside reported total production of 49.1 million barrels of oil equivalent (MMboe) for the quarter, representing a 4% decline from the previous quarter. This drop was attributed primarily to weather-related interruptions at the North West Shelf (NWS) and unplanned outages at the Pluto LNG facility.

However, these setbacks were partially offset by increased production at Shenzi and Atlantis, and most notably by the exceptional performance from the Sangomar project, which contributed 78,000 barrels per day at nearly 98% reliability on a Woodside equity basis. Sangomar came online in July 2024, making this its first full contributing quarter.

Compared to the same period last year, quarterly production rose 9%, with the Sangomar ramp-up playing a key role.

Revenue for the quarter came in at US$3.3 billion, down 5% quarter-on-quarter due to the production dip and softer oil-linked prices. However, it represented a 13% increase year-on-year, aided by higher gas hub-linked prices and the full-quarter contribution from Sangomar.

CEO Praises 'World-Class' Execution

CEO Meg O'Neill expressed satisfaction with the quarter's performance, highlighting the company’s ability to deliver significant operational execution across a diverse asset base. She noted:

"We maintained world-class operational performance across our portfolio of high-quality assets, with Sangomar further boosting quarterly revenue through exceptional production… Significant progress was made on our major growth projects, all of which are proceeding to schedule and within budget."

She added that pre-commissioning at the Beaumont New Ammonia Project is set to begin in Q2, with startup expected in the second half of 2025. The project, positioned as a key growth driver in low-carbon ammonia, is expected to yield returns above the company’s capital allocation framework.

FY25 Outlook Maintained

Woodside reaffirmed its full-year production guidance for FY2025, targeting 186–196 MMboe at a unit cost of US$8.5 to US$9.2 per barrel.

O'Neill also commented on positive policy signals ahead of Australia's federal election, noting bipartisan support for the role of natural gas in the energy transition.

Additionally, the company highlighted its continued LNG demand, referencing a 15-year sale agreement with China Resources, the fourth such contract secured in just over a year.