Woodside posts smaller-than-expected annual profit; CEO update imminent
Australian oil and gas ?producer Woodside Energy posted a ?smaller-than-expected fall in annual profit on ?Tuesday, ?as robust production offset weaker realised prices, and said it expects to name a new CEO in the first quarter of 2026.
The company stated at its results presentation that "the appointment of the CEO is an important activity ...(the Board) intends to make a announcement in the first half of 2026." Former CEO?Meg O'Neill has left Woodside for the top position at British oil giant BP.
Woodside's shares rose 2.9% to A$27.890 - their highest level since August 2024. The stock closed at a 2.6% increase.
The strong annual output from the Sangomar Project in Senegal - its first year of full contribution - helped offset lower crude prices and an increase in'sales costs. This supported earnings despite a decline in profit year-on year.
Woodside is relying on a growing LNG market and has been pushing forward with its U.S. LNG project. The company is also in talks to sell a 20% stake of its Louisiana project. This is a key component to its North American growth strategy.
The market sees the sale of another 20 percent stake in Louisiana LNG Holding Company as "a smart way" to monetise an asset with high quality, and at the same de-risk the balance sheet, said Tim Waterer. Chief market analyst at KCM Trade.
Woodside?said that its Scarborough Energy Project is 94% completed as of the end of December, and remains?on course for?first LNG by the fourth quarter 2026.
The company reported a underlying net income after tax of 2,65 billion dollars for the year ended December 31. This was above the Visible Alpha consensus estimate of $2,54 billion but below the $2.88billion profit of a year ago.
Woodside was also optimistic about the long-term outlook of LNG and oil. He argued that LNG?demand would continue to increase as?growing Asian economies?diversify their energy sources?and shift towards lower-emission fuels.
The Australian company declared a final share dividend of 59c, up from 53c last year.
(source: Reuters)
