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Woodside Energy Group Ltd on Wednesday raised full-year production guidance following double-digit production and revenue growth in the third quarter.
The Perth, Australia-based oil & gas company said revenue grew 13% to $3.68 billion in the third quarter ended September 30 from $3.26 billion a year prior.
Production increased 11% to a record 53.1 million from 47.8 million barrels of oil equivalent per day, while sales rose 4.7% to 55.8 million from 53.3 million.
Chief Executive Officer Meg O’Neill said: ‘The strong operational performance was underpinned by the accelerated ramp-up of Sangomar and exceptional performance at Pluto [liquefied natural gas] and [North West Shelf project], which recorded 99.9% and 99.2% reliability respectively.
‘Our 39% exposure to LNG gas hub indices allowed us to take advantage of increased LNG spot prices in the market over the period, demonstrating the importance of maintaining a balanced and flexible portfolio.’
Capital expenditure doubled to $3.03 billion from $1.36 billion, with $1.90 billion or 63% going towards the development of the Beaumont clean ammonia project in Texas.
Beaumont was acquired in the quarter from OCI NV for a $2.35 billion all-cash consideration with 80% paid and the renaming 20% due on project completion. Beaumont is targeting first ammonia production from 2025 and lower carbon ammonia from 2026.
Additionally, Woodside successfully raised $2 billion in the US market through a multi-tranche bond issue in September. The company also converted and upsized an existing $800 million revolving facility to a new $1.2 billion 7-year syndicated term loan mostly from Asian and European banks.
In light of the quarterly results, Woodside revised its full-year 2024 guidance.
Production is now expected to be between 189 to 195 million barrels of oil equivalent per day, up from previous guidance of 185 million to 195 million. In 2023, Woodside Energy produced 187.2 million per day.
Guidance for capital expenditure has been cut to $4.8 billion to $5.2 billion, from $5.0 billion to $5.5 billion previously.
Also Wednesday, Woodside said it will delist from the London Stock Exchange following a review into the company’s listing structure.
‘Woodside shares represented by depositary interests account for approximately 1% of Woodside’s issued share capital. Trading volumes of Woodside shares on the LSE are low and delisting from the LSE will reduce Woodside’s administration costs,’ the company explained.
The last day of trading of Woodside shares on the LSE will be November 19.
Woodside Energy shares closed 0.6% higher at A$24.93 each in Sydney on Wednesday, while in London shares were up 2.2% at 1,272.93 pence on Wednesday morning.
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