Woodside Energy (ASX: WDS) has delivered record annual production and a robust profit result for 2025, sending its shares climbing more than two per cent on Tuesday as investors welcomed the performance of the Perth-based oil and gas giant.
The company reported production of 198.8 million barrels of oil equivalent (MMboe) for the full year 2025, its highest ever, underpinned by outstanding performance at its Sangomar asset off the coast of Senegal and world-class reliability across its Pluto LNG and North West Shelf operations in Western Australia.
Net profit after tax came in at $2.718 billion, down 24 per cent from 2024, with the decline largely attributed to softer commodity prices rather than any operational weakness. Underlying net profit after tax, which strips out one-off items, fell a more modest eight per cent to $2.649 billion. This reflects the strength of the underlying business despite a challenging price environment.
Figure 1: Financial highlights of FY2025 of Woodside Energy [Woodside Energy]
Shares Respond Strongly
Markets responded positively to the result, with Woodside shares on the ASX gaining 58.5 cents, or 2.16 per cent, to close at $27.685. The stock’s recent momentum has been striking:
- +7.14% over the past week
- +14.97% over the past month
- +17.36% since the start of 2026
- +18.41% over the past year, outpacing the broader ASX 200 by nearly 10 per cent and the energy sector by around two per cent
Woodside is still one of the biggest listed companies in Australia, with a market capitalisation of about $52.6 billion.
Figure 2: Woodside Energy Group Ltd (ASX: WDS) stock market performance over the past one year. [Market Index]
Record Output, Lower Costs
Acting Chief Executive Officer Liz Westcott said the results demonstrated the disciplined execution of the company’s strategy across a period of elevated capital expenditure and moderating prices.
“Our strong underlying NPAT of $2.6 billion and free cashflow of $1.9 billion is a testament to the performance of the base business,” Westcott said.
Major operational highlights for the year included:
- Unit production costs fell four per cent to $7.8 per barrel of oil equivalent
- Over $200 million in cost reductions delivered during the year
- Operated LNG reliability averaged approximately 98 per cent across the portfolio
- Zero high-consequence injuries recorded across global operations
Sangomar was the standout performer, producing at its nameplate capacity of 100,000 barrels per day for most of the year at nearly 99 per cent reliability. The field has generated $2.6 billion in EBITDA for Woodside since production began, and the company added 27.9 MMboe to its proved reserves following production that exceeded pre-drill expectations.
Dividend Maintained at Top of Range
Woodside declared a fully franked final dividend of 59 US cents per share, bringing the full-year dividend to 112 US cents per share. The total value of dividends paid for the year amounts to $2.1 billion. The company has now paid out at the top end of its 80 per cent payout ratio target consistently since 2013, and has returned approximately $11 billion to shareholders since its merger with BHP’s petroleum business was completed in 2022.
Major Projects on Track
Beyond the base business, Woodside’s growth pipeline continues to advance on multiple fronts:
- Scarborough (Western Australia): 94 per cent complete at year end; floating production unit arrived on location in January 2026; first LNG cargo targeted for Q4 2026.
- Louisiana LNG (United States): 22 per cent complete following its April 2025 final investment decision; Woodside’s capital exposure reduced to $9.9 billion after sell-downs to Stonepeak and Williams; first LNG targeted for 2029
- Trion (Mexico): 50 per cent complete; deepwater oil project on schedule for first oil in 2028
- Beaumont New Ammonia (Texas): first production achieved in December 2025; full handover expected first half of 2026; lower-carbon ammonia production targeted for second half of 2026
The Louisiana LNG project, a three-train, 16.5 million tonne per annum development with a total cost of $17.5 billion, has seen Woodside meaningfully reduce its financial exposure through strategic partnerships, bringing its expected share of capital expenditure down from a potential majority position to $9.9 billion.
Safety and Sustainability Milestones
The company’s safety performance in 2025 was notable given the heightened level of construction and project activity across its global portfolio:
- Zero high-consequence injuries recorded globally for the full year
- Sangomar recorded no injuries in its first 18 months of operations
- The Scarborough floating production unit marked three years without a lost-time incident
- Woodside met its 2025 target of reducing net equity Scope 1 and 2 greenhouse gas emissions by 15 per cent below its starting base
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Balance Sheet and Outlook
Woodside’s financial position heading into 2026 is robust. Key balance sheet metrics include:
- $9.3 billion in liquidity
- Gearing of 2 per cent, comfortably within the 10–20 per cent target range
- Net debt to EBITDA of 9 times
- Investment-grade credit ratings of Baa1 (Moody’s) and BBB+ (S&P Global)
Full-year 2026 volume guidance has been set at 172 to 186 MMboe, reflecting the planned Pluto Train 1 major turnaround in the second quarter, expected to run for approximately five weeks. Capital expenditure guidance sits at between $4 billion and $4.5 billion. Woodside’s expansion initiatives are accelerating, especially with Louisiana LNG moving quickly and Scarborough on the verge of first gas.
