Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — FY2023 Earnings Presentation
42 slides from Woodside Energy's earnings presentation, Feb 27, 2024
Slide 1: Woodside releases full-year 2023 results
Woodside Energy Group Ltd ACN 004 898 962 Mia Yellagonga 11 Mount Street Perth WA 6000 Australia T +61 8 9348 4000 www.woodside.com ASX: WDS NYSE: WDS LSE: WDS Announcement Tuesday, 27 February 2024 WOODSIDE RELEASES FULL-YEAR 2023 RESULTS Woodside has achieved record production of 187.2 MMboe (513
Slide 2: CEO comments on full-year 2023 results
outcome was underpinned by another outstanding year at our operated LNG assets, which achieved 98% reliability over the year. Despite the inflationary environment, unit production cost was steady at $8.3/boe. “Our debt-free merger with BHP Petroleum added cash generating assets and strengthened Wood
Slide 3: Financial headlines
Financial headlines Metric Units FY23 FY22 Change NPAT $million 1,660 6,498 (74%) Underlying NPAT5 $million 3,320 5,230 (37%) Operating revenue $million 13,994 16,817 (17%) Operating cashflow $million 6,145 8,811 (30%) Free cash flow5 $million 560 6,546 (91%) Annual sales volume MMboe 201.5 168.9 19
Slide 4: Full-year reporting
Full-year reporting Woodside’s Annual Report 2023 provides further detail on our operations, activities and our financial position for the 12-month period ended 31 December 2023. Woodside’s approach to climate is an integral part of our company strategy. Woodside’s Climate Transition Action Plan 202
Slide 5: Forward-looking statements
Forward-looking statements This announcement contains forward-looking statements with respect to Woodside’s business and operations, market conditions, results of operations and financial condition, including, for example, but not limited to, statements regarding development, completion and executio
Slide 6: Non-IFRS financial measures
and presented in accordance with IFRS can be found in Woodside’s Annual Report for the period ended 31 December 2023. Woodside’s management uses these measures to monitor Woodside’s financial performance alongside IFRS measures to improve the comparability of information between reporting periods an
Slide 7: Full-Year Results Briefing 2023
FULL-YEAR RESULTS BRIEFING 2023 27 February 2024 www.woodside.com investor@woodside.com
Slide 8: 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 • This presentation has been prepared by Woodside Energy Group Ltd (“Woodside”). words such as ‘guidance’, ‘foresee’, ‘lik
Slide 9: Disclaimer, important notes and assumptions (continued)
Disclaimer, important notes and assumptions (continued) Notes to petroleum resource estimates (continued) third parties and regulatory approvals being obtained in the timeframe contemplated or at all. Woodside expresses no • Woodside reports its petroleum resource estimates inclusive of all fuel con
Slide 10: Delivering strong returns and building future value
Delivering strong returns and building future value Record production of 187.2 MMboe2 Providing energy through a high-quality portfolio, Consistent high operated LNG reliability of 98% geographically advantaged to meet growing LNG demand1 Next wave of growth progressed; Sangomar, Scarborough, Trion
Slide 11: Safety needs improvement
Safety needs improvement 2023 performance Actions ▪ Tragic fatality of our colleague, a contractor employee, on the ▪ Investigations into work practices and effectiveness of our safety North Rankin Complex controls ▪ Two Tier 1, one Tier 2 process safety events ▪ Review integrity management and majo
Slide 12: Volatility emphasises the importance of energy security
Volatility emphasises the importance of energy security Provide energy Create value Sustainable business Oil and gas prices WDS average realised price WDS average realised price WDS average realised price 160 $60.3/boe $98.4/boe $68.6/boe 90 Energy markets disrupted by geopolitical events 120 60 Pri
Slide 13: Woodside geographically advantaged to meet LNG demand in Asia
Woodside geographically advantaged to meet LNG demand in Asia Provide energy Create value Sustainable business Global LNG contracts by destination4 Global LNG contracts by duration4 50 50 Global LNG demand forecast to grow 53% to 2033, driven by Europe, China Rest of World 4 and emerging Asia1 40 No
Slide 14: High-quality portfolio providing energy now and into the future
High-quality portfolio providing energy now and into the future Provide energy Create value Sustainable business Strong operational performance Production (MMboe) ▪ Record production of 187 MMboe (513 Mboe/day), notwithstanding planned 105% turnarounds1 ▪ 98% reliability from operated LNG; consisten
Slide 15: Sangomar: building Senegal's first offshore oil project
Sangomar: building Senegal’s first offshore oil project Provide energy Create value Sustainable business 93% complete at end of 20231 ▪ FPSO arrived in Senegal in February 2024 ▪ 17 wells drilled and completed; six wells partially completed ▪ Subsea scope for FPSO hookup complete2 ▪ All mooring chai
Slide 16: Scarborough Energy Project: targeting first LNG cargo in 2026
Scarborough Energy Project: targeting first LNG cargo in 2026 Provide energy Create value Sustainable business 55% complete at end of 20231 ▪ Offshore environment plans accepted ▪ Seismic program completed ▪ Sale of 10% participating interest in Scarborough Joint Venture to LNG Japan2 and 15.1% part
Slide 17: Strong underlying NPAT; maintaining 80% payout ratio
Strong underlying NPAT; maintaining 80% payout ratio Provide energy Create value Sustainable business Financial performance Dividend distribution ▪ $9.4 billion EBITDA, impacted by lower operating revenue, offset by ▪ Final dividend payment of $1.1 billion, fully franked, returning value to reduced
Slide 18: Resilient cash margin supporting major capital investment and returns
Resilient cash margin supporting major capital investment and returns Provide energy Create value Sustainable business Cash Balance sheet ▪ Cash margin of ~80%, maintained during turnaround activity, amid ▪ Gearing of 12.1% at the lower end of target range reduced commodity price and inflationary en
Slide 19: Capital management framework unchanged
Capital management framework unchanged Provide energy Create value Sustainable business Operating cash flow1 Investing cash flow1 Net debt1 Final dividend determined $ 6.1B $ 5.6B $ 4.7B $ 1.1B (Full-year of $2.7B) Special dividends Safe, reliable and Dividend policy Investment Strong balance low co
Slide 20: Strong balance sheet capacity for returns and investment
Strong balance sheet capacity for returns and investment Provide energy Create value Sustainable business Indicative cash generation and uses (2024 – 2028, $ billion)1 $50/bbl $70/bbl 40 40 Major project start-ups expected to generate ~$32B significant cash flow with operating cash flow increasing f
Slide 21: Value unlocked through the merger; building a truly global company
Value unlocked through the merger; building a truly global company Provide energy Create value Sustainable business Rendition of the Trion floating production unit Portfolio Capabilities ▪ Reviewed Trion concept and resource, taking FID in 2023 ▪ Expanded global marketing presence creating value enh
Slide 22: On track to meet 15% Scope 1 and 2 emissions reduction target
On track to meet 15% Scope 1 and 2 net equity emissions reduction target by 20251,2 Provide energy Create value Sustainable business 2023 highlights Net equity Scope 1 and 2 emissions (Mt CO2-e)1 ▪ Net equity Scope 1 and 2 emissions 12.5% below starting base 8 ▪ Achieved through emissions avoided or
Slide 23: New complementary Scope 3 emissions abatement target
New complementary Scope 3 emissions abatement target Provide energy Create value Sustainable business Scope 3 targets Existing New complementary 2023 progress Investment target1 Emissions abatement update target1 H2 Refueller Project rendition Investment in new Take FID on new energy Cumulative tota
Slide 24: Focused on building future value through our 2024 priorities
Focused on building future value through our 2024 priorities Providing energy ▪ Operate base business reliably and efficiently through a high-quality portfolio, ▪ Achieve first oil for Sangomar geographically advantaged to meet growing LNG demand1 ▪ Progress Scarborough and Trion Creating and ▪ Cont
Slide 25: The investment case – positioned to thrive through the energy transition
The investment case – positioned to thrive through the energy transition High-quality Disciplined capital Conducting our business portfolio management sustainably ▪ Geographically advantaged to ▪ Strong and consistent cash margin ▪ On track to deliver net equity Scope meet growing LNG demand1 1 and
Slide 26: Q&A
Q&A Meg O’Neill Chief Executive Officer and Managing Director 20
Slide 27: Annexure
ANNEXURE 21
Slide 28: 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 FOCUS diversified growth, focusing on gas, including optionality for hydrogen carbon services to reduce cu
Slide 29: Net profit after tax reconciliation; primarily driven by price
Net profit after tax reconciliation; primarily driven by price GENERAL, ADMINISTRATIVE, TAX SALES COST OF SALES FINAL DIVIDEND, FULLY FRANKED AND OTHER Volume from former BHPP assets offset Cost impact of additional Fully franked final dividend by lower realised prices and impact of BHP assets, depr
Slide 30: Expanded portfolio offsetting lower prices and planned turnarounds
Expanded portfolio offsetting lower prices and planned turnarounds Operating revenue EBITDA1 Underlying NPAT1,2 16.8 14.0 11.2 $ billion 9.4 $ billion $ billion 7.0 5.2 4.9 4.1 3.6 3.5 3.3 1.9 1.6 1.1 0.4 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Lower revenue primar
Slide 31: Investing in growth
Investing in growth Operating cash flow Investing cash flow1 Free cash flow2 8.8 2022: includes $0.8B contribution 6.5 6.1 from GIP and $1.1B merger 5.6 completion payment $ billion $ billion 4.2 $ billion 3.8 3.3 0.8 2.9 1.1 2.1 2.1 1.8 1.2 2.3 0.9 0.6 2019 2020 2021 2022 2023 2019 2020 2021 2022 2
Slide 32: Unit production cost maintained in inflationary environment
Unit production cost maintained in inflationary environment Production cost (LHS) and unit production cost (RHS) 2.0 9.0 8.3 Unit production cost 8.1 (RHS) Unit production cost Full period contribution of former BHPP assets excluding major turnarounds (RHS)1,2 7.3 changing cost mix 1.6 5.7 6.0 5.3 C
Slide 33: Strong balance sheet; executing major capital expenditure and balancing returns
Strong balance sheet; executing major capital expenditure and balancing returns Net debt1 4.7 3.9 3.8 Gearing of 12.1% within lower end of target range 2.8 $ billion (10 – 20%) 0.6 Actively managing debt portfolio 2019 2020 2021 2022 2023 Total available liquidity of $7.8 billion Debt maturity profi
Slide 34: Record A$5 billion paid in Australian taxes; 85% increase
Record A$5 billion paid in Australian taxes; 85% increase Australian tax contribution4,5 6000 5.0 5000 Largest payer of PRRT in Australia1 4000 A$ billion A$3,521m | Corporate income tax More than US$500 million of foreign tax paid in 20232 3000 2.7 Global all-in effective tax rate of 42%3 2000 A$68
Slide 35: 2024 full-year guidance
2024 full-year guidance1 Production Capital expenditure2 Gas hub exposure (Unchanged) (Unchanged) (Unchanged) ▪ Woodside’s full-year 2024 production guidance is ▪ Woodside’s full-year 2024 capital expenditure ▪ Woodside expects approximately 26-33% of its 185 – 195 MMboe (505 – 533 Mboe/day) guidanc
Slide 36: Asset tables
Asset tables Depreciation and Operating revenue EBITDA1 EBIT1,3 Capital expenditure Production costs Asset amortisation2 $ million $ million $ million $ million $ million $ million Australia North West Shelf 2,993 2,381 759 1,622 121 202 Pluto 3,817 3,287 822 2,465 232 415 Wheatstone 944 803 913 (11
Slide 37: Realised price
Realised price Products Units 2023 2022 Variance LNG produced1 $/boe 79 109 (30) LNG traded2 $/boe 76 166 (90) Pipeline gas $/boe 35 48 (13) Oil and condensate $/boe 79 96 (17) NGLs $/boe 40 44 (4) Liquids traded $/boe 79 - 79 Average realised price $/boe 69 98 (29) Average Dated Brent $/bbl 83 101
Slide 38: Financial KPIs
Financial KPIs 2023 2022 Production volume MMboe 187.2 157.7 Operating revenue $ million 13,994 16,817 EBITDA1 $ million 9,363 11,234 EBIT1 $ million 3,307 9,186 Net finance income/(cost) $ million (34) (12) Tax benefit/(expense) $ million (1,551) (2,599) Non-controlling interest $ million 62 77 NPA
Slide 39: Glossary
Glossary $, $m, $B US dollar unless otherwise stated, millions of dollars, billions of dollars Woodside sets its Scope 1 and 2 greenhouse gas emissions reduction targets on an equity basis. This A$, AUD Australian dollar ensures that the scope of its emissions reduction targets is aligned with its e
Slide 40: Glossary
Glossary Lower carbon energy provider Woodside uses this term to describe its aspiration to develop a lower carbon portfolio An unplanned or uncontrolled loss of primary containment (LOPC) of any material including non-toxic Process safety event (Tier 1 and and nonflammable materials from a process,
Slide 41: Glossary
Glossary References to sustainability (including sustainable and sustainably) are used with reference to Woodside’s Sustainability Committee and sustainability related Board policies, as well as in the context of Woodside’s aim to ensure its business is sustainable from a long-term perspective, cons
Slide 42: 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