Australia’s biggest oil and gas company abandons clean energy plans after cashing in on global fuel crisis

Australia’s biggest oil and gas company has lifted interim earnings after oil prices soared due to the US-Iran conflict, as it winds back investment in new energy.

Woodside’s underlying net profit after tax – which removes one-off accounting items to indicate actual performance – rose to $US1.33 billion ($A1.85 billion) in the six months to June 30, up from $US1.25 billion ($A1.75 billion) in the equivalent 2025 period.

Woodside had continued to deliver during a period of significant volatility in global energy markets, chief executive Liz Westcott said. 

“The temporary withdrawal of 20 per cent of LNG supply and 13 per cent of oil supply from global markets, as a result of the Middle East conflict, drove increased customer demand for Woodside’s products,” Ms Westcott told an analyst briefing on Tuesday.

The company achieved an average realised price of $US74 per barrel of oil equivalent through contracted positions and premiums on crude products, a 20 per cent premium compared to a year earlier.

Brent crude and Japan Korea Marker LNG spot prices had both moderated from spikes in March and April, but restricted supply and price volatility are expected to continue for some time, Ms Westcott said.

Woodside handed down a 57 US cent (79.7 cent) final dividend, coming in at the top end of its payout range.

Operating revenue was up 13 per cent on the equivalent 2025 half to $US7.45 billion ($A10.4 billion), despite total production volumes falling 13 per cent to 86.5 million barrels of oil equivalent, mainly due to cyclone impacts.

“The result was broadly in line with expectations,”  RBC Capital Markets analyst Gordon Ramsay said.

“The quality of the result is supported by strong operational reliability across key LNG assets and Sangomar, disciplined capital management, and continued progress on major growth projects,” Mr Ramsay said.

Capital discipline was a key focus of Ms Westcott’s speech, as she announced a strategic review of Woodside’s Beaumont New Ammonia project and scrapped $US5 billion ($A7 billion) of the company’s new energy investment targets.

“We have taken the disciplined decision to retire our Scope Three investment and emissions abatement targets,” Ms Westcott said.

“These targets were established in a different market context and based on a different expected pace of the energy transition, the reality is that markets for emerging lower carbon opportunities, including hydrogen, ammonia, and carbon capture and storage, have developed more slowly than anticipated.”

Woodside had achieved its 2025 Scope One and Two targets and it was on track to reach its 30 per cent reduction from baseline by 2030.

She said the (Scope Three) targets no longer aligned with evolving technology, current policy settings, and customer demand, but the company remained interested in new energy opportunities.

Woodside shares gained roughly 1.3 per cent to $33.92 in morning trade, and has advanced more than 25 per cent since the same time in 2025.

Source: AAP