Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — FY2022 Earnings Presentation
41 slides from Woodside Energy's earnings presentation, Feb 27, 2023
Slide 1: Full-Year Results Briefing 2022
FULL-YEAR RESULTS BRIEFING 2022 27 February 2023 www.woodside.com investor@woodside.com
Slide 2: Disclaimer, important notes and assumptions
Disclaimer, important notes and assumptions Information expectations regarding long-term demand for Woodside’s products, timing of completion of Woodside’s projects, expected synergies from the BHP Petroleum merger, expectations regarding future capital expenditures, the payment of • This presentati
Slide 3: Disclaimer, important notes and assumptions (continued)
Disclaimer, important notes and assumptions (continued) Notes to petroleum resource estimates (continued) • This presentation does not include any express or implied prices at which Woodside will buy or sell financial products. 4. Woodside reports its petroleum resource estimates inclusive of all fu
Slide 4: Woodside's strategy delivering strong results
Woodside’s strategy delivering strong results NET PROFIT AFTER TAX 1 Completed merger with BHP Petroleum $ 6.5 228% billion 2 Strong operating performance from expanded global portfolio 1 underlying net profit after tax of $5.2 billion FINAL DIVIDEND, FULLY 3 Investing in oil, gas and new energy pro
Slide 5: Realising the benefits of the merger and price environment
Realising the benefits of the merger and price environment STRONG OPERATIONAL PERFORMANCE STRONG FINANCIAL OUTCOMES 3 1 OPERATED LNG RELIABILITY OPERATING REVENUE EBITDA PRODUCTION VOLUME $ $ 16.8 11.2 157.7 98.5 142% 172% 73% 1% billion billion MMboe % High LNG reliability from Pluto LNG Increased
Slide 6: Investing in Woodside's future
Investing in Woodside’s future DELIVERING VALUE DELIVERING SUSTAINABILITY OUTCOMES NET EQUITY SCOPE 1 AND 2 1 2,3 NEW ENERGY PROJECTS SYNERGIES PROJECT DELIVERY GREENHOUSE GAS EMISSIONS $400m+ annual Sangomar and $ 11 100 synergies Scarborough targeting first oil in late 2023 from initiatives implem
Slide 7: Personal safety performance requires improvement
Personal safety performance requires improvement Tier 1 or Tier 2 loss of primary containment process safety events 4 3 3 2 2 2 1 1 Tier 2 1 1 1 1 Zero high-consequence work related injuries Tier 1 - 2018 2019 2020 2021 2022 Zero Tier 1 loss of primary containment process safety events and one Tier
Slide 8: Disrupted markets highlight importance of energy security and affordability
Disrupted markets highlight importance of energy security and affordability 1 Global oil and gas pricing disrupted post invasion of Ukraine (Indexed to September 2020 at 100) 2,500 2,000 Heightened political tension, rerouting of energy flows and an uncertain energy transition contribute to a period
Slide 9: Captured elevated oil and gas prices
Captured elevated oil and gas prices 2 Average realised price 101 98 $ 62% 98.4 Portfolio actively positioned to realise the benefit of 71 71 per boe 64 higher pricing through trading activities 61 54 42 Favourable exposure to gas hub pricing, achieving 50 1 23% full-year gas hub exposure 32 Additio
Slide 10: Returning value to shareholders
Returning value to shareholders Interim and final dividend (US cps) 160 Record fully franked final dividend of 144 US cents 144 per share (cps); total full-year dividend of 253 US cps 140 87% 253 120 109 US cps, total full-year dividend Final dividend payment value of $2.7 billion; 105 full-year val
Slide 11: Sangomar – 77% complete, targeting first oil late 2023
Sangomar – 77% complete, targeting first oil late 2023 2022 HIGHLIGHTS • Completed the construction phase for the FPSO facility • Successfully relocated FPSO facility to Singapore to complete topsides integration and pre-commissioning • Completed seven of 23 wells FPSO in Singapore • Completed subse
Slide 12: Scarborough – 25% complete, targeting first LNG cargo in 2026
Scarborough – 25% complete, targeting first LNG cargo in 2026 2022 HIGHLIGHTS • Completed sell down of Pluto Train 2 • Commenced module fabrication and construction of Pluto Train 2 • Commenced site works at Pluto LNG • Commenced pipeline manufacturing and fabrication of the subsea flowlines Install
Slide 13: Changing Australian regulatory environment
Changing Australian regulatory environment REGULATORY ENVIRONMENT IN EAST COAST GAS MARKET COMMONWEALTH WATERS • The consultation required for offshore environment plans has • Woodside supports the objective of affordable and changed reliable energy supply • Expanded requirement to consult over a va
Slide 14: Progressing a pipeline of diverse opportunities
Progressing a pipeline of diverse opportunities NEW OIL GAS ENERGY Opportunity Other Atlantis, Shenzi and Other new energy Sanctioned Browse, Calypso, Sunrise Mad Dog opportunities opportunities Trion H2Tas Other Western Australia opportunities Atlantis Phase 3 and DC802 H2Perth Other Bass Strait op
Slide 15: 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 16: Trion – targeting final investment decision readiness in 2023
Trion – targeting final investment decision readiness in 2023 Generates near-term cashflow STRATEGIC Competitive development cost with quick payback 2022 HIGHLIGHTS ALIGNMENT Value accretive investment Material oil resource with current floating production unit (FPU) concept targeting 100,000 barrel
Slide 17: H2OK – completed FEED activities in 2022
H2OK – completed FEED activities in 2022 STRATEGIC 2022 HIGHLIGHTS Targeting diesel parity and Government incentives ALIGNMENT Investing in energy product Project is located to serve heavy-duty trucking choice for customers as they Completed FEED activities customers along key US transport corridors
Slide 18: Delivering towards our Scope 1 and 2 targets
Delivering towards our Scope 1 and 2 targets STRATEGY TARGETS Reduce our net equity Scope 1 15% 30% 1,2 1,3 by 2025 by 2030 and 2 greenhouse gas emissions SCOPE 1 AND 2 Net equity emissions reduction targets STRATEGY AND TARGETS Net zero DESIGN OUT OPERATE OUT OFFSET aspiration by 2050 or sooner Tar
Slide 19: Investing in new energy and lower carbon services
Investing in new energy and lower carbon services STRATEGY TARGET Invest in the products and services our customers need as SCOPE 3 they reduce their emissions $5 billion STRATEGY AND investment in new energy products 1 and lower carbon services by 2030 TARGET CAPITAL PROMOTE SUPPORT VALUE ALLOCATIO
Slide 20: Financial Update
FINANCIAL UPDATE Graham Tiver Chief Financial Officer and Executive Vice President
Slide 21: Well positioned for committed capital investment
Well positioned for committed capital investment FY22 FY21 Change $m Operating revenue 16,817 6,962 142% High operational reliability, higher realised prices, 1 additional volume from BHPP assets and $m EBITDA 11,234 4,135 172% contribution of the Pluto-KGP Interconnector 2 $m EBIT 9,186 3,493 163%
Slide 22: 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 1 Investing cash flow Operating cash flow Dividend determined $ $ $ 8,811 million 4,804 million 2,265 mill
Slide 23: Full-year 2022 profit supported by increased production and higher prices
Full-year 2022 profit supported by increased production and higher prices Contribution of new assets and higher realised prices across all markers 2022 NPAT adjustments Category $ million 5,007 (2,695) Losses on hedging Merger transaction costs 419 activities and repurchase Orphan Basin exit costs 1
Slide 24: Operational performance, merger and market conditions driving profitability
Operational performance, merger and market conditions driving profitability 1 2 Operating revenue EBITDA Underlying NPAT 16.8 11.2 5.2 7.0 4.1 3.8 5.2 3.5 4.9 1.6 1.4 3.6 1.1 1.9 0.4 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Higher revenue driven by strong operationa
Slide 25: Strong cash flow supports upcoming investment
Strong cash flow supports upcoming investment 1 1 2 Operating cash flow Investing cash flow Free cash flow 9.3 4.2 7.1 Collateral payments Collateral Contribution 8.8 0.8 from GIP payments Operating 6.5 cash flow Free cash 2.9 Merger flow completion 1.1 payment 2.1 1.8 3.8 3.3 3.3 Investing cash 1.2
Slide 26: Strong underlying cost performance despite inflationary pressures
Strong underlying cost performance despite inflationary pressures Production cost Unit production cost reconciliation Unit production 1,400 9.0 8.1 8.1 1.5 cost ($/boe) 8.0 1,200 Heritage BHPP asset 0.9 6.6 0.6 7.0 production costs ($ billion) 0.5 (0.4) 0.4 1,000 5.7 (0.1) 5.3 5.3 6.0 5.1 4.8 800 5.
Slide 27: Margins remain resilient through the price cycle
Margins remain resilient through the price cycle 2 2 1 Gross margin Five-year cash margin trend (%) Cash margin GROSS MARGIN 85% CASH MARGIN 83% 80% 80% 78% 65.2$/boe 78.1$/boe 61% 85% PRODUCTION AND OTHER COSTS PRODUCTION COSTS 22% 23.7$/boe 8.3$/boe 3 OTHER CASH COSTS DEPRECIATION AND AMORTISATION
Slide 28: Prepared for committed capital expenditure
Prepared for committed capital expenditure Continuing strong liquidity 10.2 Low cost of drawn debt (3.9%) 7.0 6.7 6.1 Undrawn facilities Cash 3.9 3.5 years portfolio weighted average term to Liquidity maturity 2018 2019 2020 2021 2022 1 Credit ratings of BBB+ and Baa1 reaffirmed 3 Balanced debt matu
Slide 29: Record Australian tax contributions
Record Australian tax contributions; 311% increase 3,4,5 Australian tax contribution 2.7 A$7m | Fringe benefits tax A$60m | Payroll tax A$392m | Federal excise A$2.7 billion paid in Australian tax and royalties in A$534m | Federal royalties 2022, a 311% increase on 2021 A$720m | Petroleum resource r
Slide 30: Outlook
OUTLOOK Meg O’Neill Chief Executive Officer and Managing Director
Slide 31: Resilient hydrocarbon demand in a range of scenarios
Resilient hydrocarbon demand in a range of scenarios OIL GAS NEW ENERGY 1 1 1 Oil demand (EJ) Low carbon hydrogen demand (EJ) Natural gas demand (EJ) 200 200 200 STEPS STEPS APS APS 100 100 100 NZE NZE NZE APS STEPS 0 0 0 2020 2025 2030 2035 2040 2045 2050 2020 2025 2030 2035 2040 2045 2050 2020 202
Slide 32: Clear priorities
Clear priorities SUSTAINABLE MAJOR PROJECTS CORE BUSINESS FUTURE Deliver first oil from Sangomar Extend decarbonisation plans to heritage Deliver core business safely, reliably and BHP operating assets cost-efficiently with reduced emissions Progress Shenzi North and Scarborough Prepare for FID read
Slide 33: Annexure
ANNEXURE Woodside Energy ss a8 Ey. a ay 8 i & mg E =
Slide 34: Depreciation reconciliation
Depreciation reconciliation Impacts to depreciation expense from 2021 to 2023 0.8 4.4 0.1 0.6 First full year of 1.2 2.9 Impact of Wheatstone depreciation post merger, impairment reversal 2022 reserves updates, project RFSU and 2023 Change in application of production forecasts depreciation policy (
Slide 35: 2023 full-year guidance
2023 full-year guidance Production guidance • Woodside’s production guidance is 180 – 190 MMboe LNG MMboe 83 – 85 MMboe 40 – 42 Pipeline gas • The production guidance is inclusive of major turnaround activity: 50 – 55 Crude and condensate MMboe Natural gas liquids MMboe 7 – 8 • Pluto LNG major turna
Slide 36: Asset tables
Asset tables Depreciation and 1 3 4 Operating revenue EBITDA EBIT Capital expenditure Production costs 2 Asset amortisation $ million $ million $ million $ million $ million $ million Australia 3,307 2,722 683 2,039 116 159 North West Shelf 5,321 4,780 819 3,961 247 401 Pluto 1,156 1,010 (630) 1,640
Slide 37: Realised price
Realised price Variance Products Units 2022 2021 % 1 LNG produced $/boe 109 56 95 2 LNG traded $/boe 166 67 148 Pipeline gas $/boe 48 17 182 Oil and condensate $/boe 96 76 26 NGLs $/boe 44 82 (46) Average realised price $/boe 98 61 61 Average Dated Brent $/bbl 101 71 42 JCC (lagged three months) $/b
Slide 38: Corporate performance
Corporate performance 2022 2021 Production volume MMboe 157.7 91.1 Operating revenue $ million 16,817 6,962 1 EBITDA $ million 11,234 4,135 2 EBIT $ million 9,186 3,493 Net finance costs $ million 12 203 Tax expense/(benefit) $ million 2,599 1,254 Non-controlling interest $ million 77 53 NPAT $ mill
Slide 39: Glossary
Glossary FEED Front-end engineering design $, $m, $B US dollar unless otherwise stated, millions of dollars, billions of dollars FID Final investment decision A$, AUD Australian dollar FPSO Floating production storage and offloading ASX Australian Securities Exchange FPU Floating production unit Woo
Slide 40: Glossary
Glossary MMbbl Million barrels Direct GHG emissions. These occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions MMBtu Million British thermal units from chemical production in owned
Slide 41: Head Office contact details
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