Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — H1 2023 Earnings Presentation
43 slides from Woodside Energy's earnings presentation, Aug 22, 2023
Slide 1: Half-Year Results Briefing 2023
HALF-YEAR RESULTS BRIEFING 2023 22 August 2023 www.woodside.com investor@woodside.com
Slide 2: Disclaimer, important notes and assumptions
Disclaimer, important notes and assumptions Information historical or present facts, are forward-looking statements and generally may be identified by the use of forward-looking words such as ‘guidance’, ‘foresee’, ‘likely’, ‘potential’, ‘anticipate’, ‘believe’, ‘aim’, ‘estimate’, ‘expect’, ‘intend’
Slide 3: Disclaimer, important notes and assumptions (continued)
Disclaimer, important notes and assumptions (continued) Notes to petroleum resource estimates (continued) These growth opportunities are subject to relevant joint venture participant approvals, commercial arrangements with third parties and regulatory approvals being obtained in the timeframe contem
Slide 4: Delivering core business, growth projects and returns
Delivering core business, growth projects and returns Reliable operating performance from global portfolio and 1 NET PROFIT AFTER TAX major turnarounds successfully completed $ 1.7 6% Continued execution of Sangomar and Scarborough 2 billion and final investment decision taken on Trion earnings per
Slide 5: Strong operational performance and financial outcomes
Strong operational performance and financial outcomes OPERATIONAL PERFORMANCE FINANCIAL OUTCOMES 2 TOTAL RECORDABLE INJURY RATE OPERATING REVENUE EBITDA PRODUCTION VOLUME $ 91.3 7.4 4.9 1.72 66% 27% 23% per million work hours MMboe billion billion Tragic fatality on North Rankin, strong Contribution
Slide 6: Investing in Woodside's future
Investing in Woodside’s future DELIVERING VALUE DELIVERING SUSTAINABILITY OUTCOMES NET EQUITY SCOPE 1 AND 2 2 ASSET DECARBONISATION PLANS SCARBOROUGH SELL-DOWN PROJECT DELIVERY GREENHOUSE GAS EMISSIONS Developed for all Sangomar and On track for 2025 Agreed sale of 10% Woodside and Scarborough net e
Slide 7: Challenging safety performance
Challenging safety performance TRI and TRIR 1.80 35 2.00 1.74 1.72 30 Employee TRI 1.50 25 20 Fatality during inspection work on a caisson at the 0.90 0.88 24 1.00 19 Contractor TRI 15 North Rankin Complex 10 15 0.50 11 TRIR per 8 5 million work 8 6 3 3 hours 2 0 0.00 Shared learnings from fatality
Slide 8: Operational performance
Operational performance North West Shelf Project Pluto LNG Other Australia Gulf of Mexico/ Trinidad & Tobago § LNG reliability of 99.9% § Completed planned five-yearly § First production achieved at § LNG reliability of 97.6% achieved in the five months Ngujima-Yin FPSO the Argos platform for Mad 1
Slide 9: Returning value to shareholders through a period of high investment
Returning value to shareholders through a period of high investment Interim and final dividend (US cps) 144 Fully franked interim dividend of 80 US cps and 109 1 105 annualised dividend yield of 6.9% 33 80 80% payout ratio and interim dividend payment value of $1.5 billion 76 55 Balanced cash flow a
Slide 10: Prices normalising following 2022 volatility
Prices normalising following 2022 volatility Oil and gas prices 160 90 120 60 Price environment reflective of economic headwinds and high gas storage levels in Europe 80 2023 has highlighted a continued focus on energy security 30 40 with a number of long-term LNG contracts being signed in the marke
Slide 11: Robust prices relative to five year average
Robust prices relative to five year average 2 Average realised price 108 96 80 Portfolio actively positioned to realise benefits of trading activities 66 65 74 1 31% year-to-date gas hub exposure 51 40 45 Revised full-year 2023 gas hub exposure guidance 36 1 between 27 – 33% H1 2019 H1 2020 H1 2021
Slide 12: Robust LNG outlook; Scarborough expected online at opportune time
Robust LNG outlook; Scarborough expected online at opportune time 3 Global LNG supply and demand gap 800 Fine balance between expected supply and demand in Demand near-term Scarborough first cargo 600 Natural gas expected to play sustained role through the 1 energy transition 400 Under construction
Slide 13: Sangomar – 88% complete, targeting first oil mid-2024
Sangomar – 88% complete, targeting first oil mid-2024 H1 2023 HIGHLIGHTS § Completed installation and testing of rigid flowlines § Completed 12 of 23 wells, with 11 wells partially complete § Progressed the subsea installation campaign, now 76% complete FPSO Léopold Sédar Senghor Subsea package H2 2
Slide 14: Scarborough – 38% complete, targeting first LNG 2026
Scarborough – 38% complete, targeting first LNG 2026 H1 2023 HIGHLIGHTS § Completed construction accommodation village § Completed pipeline manufacturing 1 § Agreed sell-down of 10% Scarborough interest (upstream) to LNG Japan § Scarborough Trunkline Installation (State Waters) Environment Plan acce
Slide 15: Trion – FID taken, targeting first oil 2028
Trion – FID taken, targeting first oil 2028 H1 2023 HIGHLIGHTS § Final investment decision taken by Woodside 1 § Field development plan (FDP) approved by Joint Venture § FPU engineering, procurement and construction contract executed with Hyundai Heavy Industries 2 § Drilling rig, FPU and floating,
Slide 16: Momentum building in the global hydrogen market
Momentum building in the global hydrogen market 1 Low carbon hydrogen demand outlook (mtpa) 20 250 10 200 Other Rise in national strategies, technology roadmaps and Methanol 0 150 fiscal incentives Other Industry Shipping 100 Steel The US Inflation Reduction Act has been a global Road Transport 50 c
Slide 17: Portfolio of new energy opportunities
Portfolio of new energy opportunities Woodside Solar Heliogen Proposed solar facility expected to initially supply approximately 50 MW of solar energy Initial 5 MW concentrated solar energy to Pluto LNG. Key electrical tie-in points system to prove concept of energy installed during the 2023 Pluto t
Slide 18: H2OK progressing towards FID readiness
H2OK progressing towards FID readiness H2 2023 H1 2023 HIGHLIGHTS § Purchased 94 acres of land in the Westport Industrial Park in Ardmore, Oklahoma, for the proposed H2OK facility 1 § Construction bids received in July, and under review H2 2023 FOCUS AREAS § Execute agreements for power and water su
Slide 19: Building CCS options
Building CCS options Carbon capture and storage (CCS) portfolio options Catalysts for de-risking Carbon capture technology Browse CCS Bonaparte CCS CCS included as base case for Collaboration with industry to develop business Government support; Browse development concept case for large-scale carbon
Slide 20: Progressing asset decarbonisation
Progressing asset decarbonisation Avoiding and reducing emissions are Woodside’s priority Delivering emissions reductions pathways 1 Potential impact of asset decarbonisation planning § Woodside has a lower gross Scope 1 and 2 emissions 2 intensity than the global average of a comparable portfolio +
Slide 21: Financial Update
FINANCIAL UPDATE Graham Tiver Chief Financial Officer and Executive Vice President 21
Slide 22: Strong earnings and balance sheet from expanded global portfolio
Strong earnings and balance sheet from expanded global portfolio HY23 HY22 Change $m Operating revenue 7,400 5,810 27% 1 $m EBITDA 4,888 3,971 23% Additional volume from former BHPP assets and Pluto- 1 $m EBIT 2,791 2,982 6% KGP Interconnector, impacted by lower prices and planned turnaround activit
Slide 23: Disciplined capital management
Disciplined capital management Well positioned for major Capital management Resilient through the 1 2 3 capital investment through supports strong price cycle 2023 and 2024 dividends and growth Dividend Operating Investing 1 $ $ $ $ Net debt 1,2 3.2B 2.9B 1 1.5B 2.6B determined cash flow cash flow S
Slide 24: Expanded portfolio offsetting lower prices and planned turnarounds
Expanded portfolio offsetting lower prices and planned turnarounds 1 1,2 Operating revenue EBITDA Underlying NPAT 7.4 1.9 1.8 4.9 5.8 4.0 2.5 2.3 1.9 1.5 1.5 0.4 0.4 1.0 0.3 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 Higher
Slide 25: Investing in growth
Investing in growth 1 2 Operating cash flow Investing cash flow Free cash flow 2.9 2.6 1.1 2.5 1.5 1.5 1.3 0.3 1.1 1.0 1.0 0.9 0.8 0.6 0.3 0.3 0.3 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 Benefit of GIP's additional contr
Slide 26: Cost performance impacted by planned turnarounds
Cost performance impacted by planned turnarounds 2 Production cost Major turnarounds 84 413 Production cost (BHPP) Heritage Woodside costs remain in line with H1 2022 86 65 Production cost (WDS) 311 310 Full period contribution of former BHPP assets 224 225 218 changing cost mix H1 2019 H1 2020 H1 2
Slide 27: Maintained 80% cash margin in lower price environment
Maintained 80% cash margin in lower price environment 1 Cash margin Inclusion of additional five months BHPP revenue 1 CASH MARGIN Additional Interconnector cargoes Revenue impacted by planned Pluto and Ngujima-Yin 57.4$/boe turnarounds 73% PRODUCTION COSTS 80% 80% 82% 85% (Based on sales boe exclud
Slide 28: Positioned to deliver strong shareholder returns and business priorities
Positioned to deliver strong shareholder returns and business priorities 1 Net debt and gearing 4.5 30% 3.9 3.8 4.0 25% 3.2 3.5 2.8 3.0 20% Target 10-20% Gearing and net debt increased in line with planned 2.5 gearing through 15% 1 2.0 capital expenditure the cycle 1.5 10% 1.0 0.6 Net debt 5% 0.5 Ge
Slide 29: Maintaining strong liquidity through the cycle
Maintaining strong liquidity through the cycle Continuing strong liquidity 10.2 Robust liquidity management to support near term growth and returns 7.5 7.0 6.7 6.1 Total forecast $6.0 – 6.5 billion dollars of capital Undrawn facilities expenditure in 2023 remains unchanged Cash Liquidity Scarborough
Slide 30: Record A$3.7 billion paid in Australian tax and royalties in H1 2023
Record A$3.7 billion paid in Australian tax and royalties in H1 2023 4 Australian tax contribution (paid in the period) 3.7 2.7 1 >A$1 billion in PRRT paid in the past 12 months A$2,850m | Corporate income tax 2 >US$300 million of foreign tax paid in H1 2023 3 Global all-in effective tax rate of 42%
Slide 31: Outlook
OUTLOOK Meg O’Neill Chief Executive Officer and Managing Director 31
Slide 32: The investment case – a global energy supplier
The investment case – a global energy supplier DISCIPLINED CAPITAL HIGH QUALITY POSITIONED FOR THE PORTFOLIO MANAGEMENT ENERGY TRANSITION Framework established to optimise value Agile, flexible and adaptable as the Scale, diversification and resilience and shareholder returns world’s energy mix evol
Slide 33: Disciplined capital allocation
Disciplined capital allocation OIL GAS NEW ENERGY OFFSHORE PIPELINE LNG DIVERSIFIED Generate high returns to fund New energy products and lower Leveraging infrastructure to monetise undeveloped diversified growth, focusing on carbon services to reduce customers’ FOCUS gas, including optionality for
Slide 34: Clear priorities to optimise value and drive shareholder returns
Clear priorities to optimise value and drive shareholder returns CORE BUSINESS MAJOR PROJECTS SUSTAINABLE FUTURE Complete pre-commissioning and remedial work on Sangomar FPSO Execute core business safely, reliably and Prepare for FID readiness at H2OK and Woodside Solar cost-efficiently with reduced
Slide 35: Annexure
ANNEXURE » Sl
Slide 36: Net profit after tax reconciliation
Net profit after tax reconciliation INTERIM DIVIDEND, FULLY SALES COST OF SALES GENERAL, ADMINISTRATIVE, TAX AND OTHER FRANKED Volume from former BHPP Managing underlying Fully franked interim One-off transactions and tax impacts assets offset by lower realised inflationary pressures dividend of 80
Slide 37: 2023 full-year guidance
2023 full-year guidance Production guidance (unchanged) • Woodside’s production guidance is 180 – 190 MMboe • Production guidance is inclusive of the planned North West Shelf LNG Train 1 major turnaround in Q3 2023, duration approximately 4 weeks 1 Investment expenditure guidance (unchanged) • Woods
Slide 38: Asset tables
Asset tables Depreciation and 1 1 3 Operating revenue EBITDA EBIT Capital expenditure Production costs 2 Asset amortisation $ million $ million $ million $ million $ million $ million Australia 1,917 1,549 406 1,143 52 99 North West Shelf 1,834 1,608 412 1,196 122 231 Pluto 511 451 221 230 25 33 Whe
Slide 39: Realised price
Realised price 4 5 Products Units H1 2023 H1 2022 Variance 1 LNG produced $/boe 88 89 (1) 2 LNG traded $/boe 90 140 (50) Pipeline gas $/boe 38 52 (14) Oil and condensate $/boe 75 114 (39) NGLs $/boe 47 48 (1) Average realised price $/boe 74 96 (22) Average Dated Brent $/bbl 80 108 JCC (lagged three
Slide 40: Corporate performance
Corporate performance H1 2023 H1 2022 Production volume MMboe 91.3 54.9 Operating revenue $ million 7,400 5,810 1 EBITDA $ million 4,888 3,971 1 EBIT $ million 2,791 2,982 Net finance costs $ million 37 55 Tax expense $ million 1,062 1,248 Non-controlling interest $ million 26 39 NPAT $ million 1,74
Slide 41: Glossary
Glossary Woodside sets its Scope 1 and 2 greenhouse gas emissions reduction targets on an equity basis. This $, $m, $B US dollar unless otherwise stated, millions of dollars, billions of dollars ensures that the scope of its emissions reduction targets is aligned with its economic interest in its Eq
Slide 42: Glossary
Glossary Woodside uses this term to describe technologies, such as CCUS or offsets, that may be capable of PRRT Petroleum resource rent tax Lower carbon services reducing the net greenhouse gas emissions of our customers RFSU Ready for start-up MGP Methane Guiding Principles Direct GHG emissions. Th
Slide 43: Head Office: Woodside Energy Group Ltd
Head Office: Woodside Energy Group Ltd Mia Yellagonga 11 Mount Street Perth WA 6000 Postal Address: GPO Box D188 Perth WA 6840 Australia T: +61 8 9348 4000 F: +61 8 9214 2777 E: companyinfo@woodside.com Woodside Energy Group Ltd ABN 55 004 898 962 woodside.com
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