Woodside Power’s annual revenue hits 3-year low on weak oil and fuel costs

By Sameer Manekar

(Reuters) – Australian oil and fuel main Woodside Power reported its smallest annual underlying revenue in three years on Tuesday, damage by decrease realised costs, however maintained its 2025 output forecast on expectations of sturdy demand for liquefied pure fuel.

Power markets had been disrupted by vital geopolitical occasions throughout the 12 months, with slowing international progress and delicate demand from high shopper China additional exerting a downward stress on commodity costs.

Woodside’s common realised worth for its merchandise was $63.60 per barrel of oil equal, down 7% from final 12 months.

That damage the corporate’s full-year underlying internet revenue after tax, which fell to $2.88 billion from final 12 months’s $3.32 billion. It was Woodside’s smallest annual revenue since 2021, although it beat the Seen Alpha consensus estimate of $2.83 billion.

On a statutory foundation, full-year internet revenue after tax greater than doubled from final 12 months to $3.57 billion.

The corporate declared a ultimate dividend of 53 cents per share, barely forward of the consensus of 51 U.S. cents apiece, however beneath final 12 months’s 60 cents per share.

“The ultimate dividend was additionally forward of consensus, which the market ought to like in the present day,” analysts at Citi stated in a word.

Shares of Australia’s high oil and fuel producer had been buying and selling marginally larger at A$23.48 as of 2321 GMT, in contrast with a 0.7% drop within the ASX200 benchmark index.

Woodside maintained its fiscal 2025 manufacturing forecast of between 186 and 196 million barrels of oil equal.

“With ongoing strong LNG demand forecast for the Asia Pacific area, and near-term structural shortfalls in fuel provide forecast for each the east coast and Western Australian markets, Woodside will proceed to be a dependable provider of vitality,” Chief Govt Officer Meg O’Neill stated.

The corporate additionally reaffirmed its capital expenditure forecast of between $4.5 billion and $5.0 billion, excluding its plans for the Louisiana LNG undertaking which it acquired in October 2024.

Reuters earlier this month reported Woodside held talks with a number of potential consumers of stakes in its Louisiana LNG undertaking, together with Tokyo Gasoline, Japan’s JERA and Saudi Aramco-backed MidOcean Power.

“We’re progressing in the direction of readiness for a ultimate funding determination from the primary quarter of 2025 (on Louisiana LNG),” O’Neill stated on Tuesday.

(Reporting by Sameer Manekar in Bengaluru; Modifying by Shounak Dasgupta and Stephen Coates)