Woodside Energy Group Ltd. - the largest oil and gas producer in Australia - said on Tuesday that its profit more than quadrupled in the first half of 2022 on higher energy prices and its acquisition of BHP Billiton's oil and gas assets.
Woodside Energy said its net profit skyrocketed 417% to $1.64 billion in six months ending June 30. The average realised price more than doubled from a year earlier to $96.40 a barrel of oil equivalent. In June, the company completed the acquisition of BHP Billiton's oil and gas assets, which boosted its production by 19% to 55 million barrels of oil equivalent.
Woodside Energy has benefited from soaring gas prices as Western sanctions on Russia in the wake of the Russia-Ukraine conflict have forced Asian and European gas buyers to find alternative suppliers in an already tight market.
The acquisition of BHP Billiton's oil assets has made Woodside Australia's largest energy company and one of the world's largest liquefied natural gas (LNG) suppliers. The company is currently one of the top ten independent oil and gas producers in the world.
After merging with BHP Billiton's oil sector, Woodside now owns 100% of the $5.6 billion Scarborough gas project, the company's largest growth project. The Scarborough project is scheduled to ship its first batch of LNG cargo in 2026.
“The turmoil in global and Australian energy markets over the past six months has highlighted the importance of natural gas in the world's energy mix and has deepened our confidence in the long-term demand outlook for natural gas, which accounts for 70% of Woodside's energy assets." Said Woodside chief executive Meg O'Neill in a statement.
However, Woodside has been looking to sell a stake in the Scarborough project for some time now. O'Neill said the company was in talks with "high-quality" potential partners, but given the strength of the LNG market, it would only sell if the price was fair and the company would not sell the key asset at a low price.
Woodside said the company will pay an interim dividend of $1.09 a share, more than triple last year's level and beating analyst expectations.
Shares of the company rose as much as 3.8% on Tuesday to their highest level since July 2019 after the earnings report.
