Woodside Energy Group Ltd (ASX: WDS) shares are experiencing a decline today, with the price dropping 1.5% to $28.18 in morning trade, following a flat close at $28.60 the previous day. This downturn comes as investors digest the company's second-quarter production update. Despite reporting a 2% increase in revenue to $3.03 billion for the quarter, the share price has come under pressure.
The company's quarterly production totaled 44.4 million barrels of oil equivalent (MMboe), or 488 thousand barrels of oil equivalent (Mboe) per day, reflecting a 1% decrease from the previous quarter. This decline was attributed to planned maintenance, weather-related impacts at the North West Shelf, and unplanned outages at Wheatstone and Julimar. However, these reductions were somewhat mitigated by higher seasonal demand at Bass Strait and the commencement of first oil at the Sangomar project. Despite these factors, the share price of this ASX energy stock has slipped.
Woodside reaffirmed its full-year production guidance of 185 to 195 MMboe and capital expenditure forecast of $5.0 to $5.5 billion. On the funding side, the company secured a $1 billion, 10-year loan from JBIC in May to support the Scarborough Energy Project.
CEO Meg O'Neill highlighted several key achievements and strategic moves. She noted the significant milestone of first oil from the Sangomar project offshore Senegal, and the progress of the Scarborough Energy Project in Western Australia, which is now over two-thirds complete with the first LNG cargo expected in 2026. The company is also advancing its new energy initiatives, having secured primary environmental approvals for the Hydrogen Refueller @H2Perth and continuing discussions for H2OK in the US. Furthermore, Woodside’s strong LNG demand in Asian markets is supported by a long-term sale and purchase agreement with CPC Corporation, Taiwan. The recent agreement to acquire Tellurian Inc and Driftwood LNG is expected to bolster Woodside's position as a global LNG powerhouse by adding scalable US LNG development to its portfolio.
Woodside is set to release its half-year results on August 27. Despite today’s decline, the share price is down 10% year-to-date.