Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — FY2022 Earnings Presentation
44 slides from Woodside Energy's earnings presentation, Feb 27, 2023
Slide 1: Woodside Full-Year 2022 Results Announcement
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 Monday, 27 February 2023 WOODSIDE FULL-YEAR 2022 RESULTS Woodside has recorded full-year net profit after tax (NPAT) of US$6,49
Slide 2: CEO comments and financial headlines
“During the year we made significant progress on our major growth projects. Seven wells of the planned 23 have now been completed at the Sangomar Field Development Phase 1 offshore Senegal. In 2023, we expect to complete subsea installation and relocate the floating production storage and offloading
Slide 3: Full-year reporting, AGM and teleconference details
• Delivered NWS Greater Western Flank Phase 3 and Lambert Deep projects ahead of schedule and under budget • Installed subsea multi-phase pump at Shenzi ahead of schedule and under budget Full-year reporting Woodside’s Annual Report 2022 provides further detail on our operations, activities and our
Slide 4: Full-Year Results Briefing 2022
FULL-YEAR RESULTS BRIEFING 2022 27 February 2023 www.woodside.com investor@woodside.com
Slide 5: 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, • This presentation has been prepared by Woodside Energy Group Ltd (“Woodside”). By accessing/attending this expected synergies from t
Slide 6: 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 7: Woodside's strategy delivering strong results
Woodside’s strategy delivering strong results NET PROFIT AFTER TAX 6.5 1 Completed merger with BHP Petroleum $ 228% 2 Strong operating performance from expanded global portfolio billion underlying net profit after tax of $5.2 billion1 FINAL DIVIDEND, FULLY 3 Investing in oil, gas and new energy proj
Slide 8: Realising the benefits of the merger and price environment
Realising the benefits of the merger and price environment STRONG OPERATIONAL PERFORMANCE STRONG FINANCIAL OUTCOMES PRODUCTION VOLUME1 OPERATED LNG RELIABILITY OPERATING REVENUE EBITDA3 157.7 73% 98.5 1% $ 16.8 billion 142% $ 11.2 billion 172% MMboe % Significant contribution from heritage High LNG
Slide 9: Investing in Woodside's future
Investing in Woodside’s future DELIVERING VALUE DELIVERING SUSTAINABILITY OUTCOMES NET EQUITY SCOPE 1 AND 2 SYNERGIES1 PROJECT DELIVERY GREENHOUSE GAS EMISSIONS2,3 NEW ENERGY PROJECTS $400m+ annual synergies from initiatives implemented Sangomar and Scarborough targeting first oil in late 2023 11 %
Slide 10: 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 Zero high-consequence work related injuries 1 1 1 1 Tier 1 - 2018 2019 2020 2021 2022 Zero Tier 1 loss of primary containment process safety events and one Tier
Slide 11: Disrupted markets highlight importance of energy security and affordability
Disrupted markets highlight importance of energy security and affordability Global oil and gas pricing disrupted post invasion of Ukraine1 (Indexed to September 2020 at 100) 2,500 Heightened political tension, rerouting of energy 2,000 flows and an uncertain energy transition contribute to a period
Slide 12: Captured elevated oil and gas prices
Captured elevated oil and gas prices Average realised price2 101 98.4 98 $ 62% Portfolio actively positioned to realise the benefit of 71 71 per boe higher pricing through trading activities 64 $/boe 61 54 Favourable exposure to gas hub pricing, achieving 50 42 23% full-year gas hub exposure1 32 Add
Slide 13: 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 253 140 87% 120 Final dividend payment value of $2.7 billion; 105 109 US cps, total full-year dividend full-year val
Slide 14: 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 • Completed subsea equipment fabric
Slide 15: 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 16: Changing Australian regulatory environment
Changing Australian regulatory environment REGULATORY ENVIRONMENT IN COMMONWEALTH WATERS EAST COAST GAS MARKET • 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 17: Progressing a pipeline of diverse opportunities
Progressing a pipeline of diverse opportunities NEW OIL GAS ENERGY Opportunity Sanctioned Other Atlantis, Shenzi and Other new energy Mad Dog opportunities Browse, Calypso, Sunrise opportunities Trion Other Western Australia H2Tas opportunities Atlantis Phase 3 and DC802 H2Perth Other Bass Strait op
Slide 18: 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 19: 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 20: H2OK – completed FEED activities in 2022
H2OK – completed FEED activities in 2022 STRATEGIC Targeting diesel parity and Government incentives 2022 HIGHLIGHTS ALIGNMENT Investing in energy product Project is located to serve heavy-duty trucking choice for customers as they customers along key US transport corridors Completed FEED activities
Slide 21: 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% and 2 greenhouse gas emissions by 20251,2 by 20301,3 SCOPE 1 AND 2 Net equity emissions reduction targets STRATEGY AND TARGETS Net zero DESIGN OUT OPERATE OUT OFFSET aspiration by 2050 or sooner Targe
Slide 22: 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 TARGET CAPITAL PROMOTE and lower carbon services by 20301 SUPPORT VALUE ALLOCATION
Slide 23: Financial Update
FINANCIAL UPDATE Graham Tiver Chief Financial Officer and Executive Vice President
Slide 24: Well positioned for committed capital investment
Well positioned for committed capital investment FY22 FY21 Change Operating revenue $m 16,817 6,962 142% High operational reliability, higher realised prices, additional volume from BHPP assets and EBITDA1 $m 11,234 4,135 172% contribution of the Pluto-KGP Interconnector EBIT2 $m 9,186 3,493 163% Si
Slide 25: Disciplined capital management
Disciplined capital management Well positioned for major Capital management Resilient through the 1 capital investment through 2 3 supports strong price cycle 2023 and 2024 dividends and growth Operating cash flow1 Investing cash flow Dividend determined $ 8,811 million $ 2,265 million $ 4,804 milli
Slide 26: 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 27: Operational performance, merger and market conditions driving profitability
Operational performance, merger and market conditions driving profitability Operating revenue EBITDA1 Underlying NPAT2 16.8 11.2 5.2 $ billion $ billion $ billion 7.0 4.1 5.2 3.8 3.5 4.9 1.6 3.6 1.4 1.9 1.1 0.4 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Higher revenue
Slide 28: Strong cash flow supports upcoming investment
Strong cash flow supports upcoming investment Operating cash flow1 Investing cash flow2 Free cash flow1 9.3 4.2 Collateral 7.1 payments 8.8 Contribution Collateral 0.8 Operating from GIP payments cash flow 6.5 2.9 Merger Free cash 1.1 completion flow payment $ billion $ billion $ billion 2.1 3.8 1.8
Slide 29: Strong underlying cost performance despite inflationary pressures
Strong underlying cost performance despite inflationary pressures Production cost Unit production cost reconciliation Unit production 1,400 8.1 9.0 1.5 8.1 cost ($/boe) 8.0 1,200 0.6 Heritage BHPP asset 0.9 6.6 7.0 production costs ($ billion) 1,000 5.7 0.5 (0.4) 0.4 5.3 6.0 5.3 (0.1) 5.1 4.8 800 5.
Slide 30: Margins remain resilient through the price cycle
Margins remain resilient through the price cycle Gross margin1 Five-year cash margin trend (%)2 Cash margin2 GROSS MARGIN CASH MARGIN 65.2 78.1 85% 83% 80% 80% 78% $/boe $/boe 61% 85% PRODUCTION AND OTHER COSTS PRODUCTION COSTS 22% 23.7 $/boe 8.3 $/boe DEPRECIATION AND AMORTISATION OTHER CASH COSTS3
Slide 31: 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 $ billion 3.5 years portfolio weighted average term to 3.9 Cash Liquidity maturity Credit ratings of BBB+ and Baa1 reaffirmed1 2018 2019 2020 2021 2022 Balanced de
Slide 32: Record Australian tax contributions; 311% increase
Record Australian tax contributions; 311% increase Australian tax contribution3,4,5 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 $ billion Our 2023 tax contrib
Slide 33: Outlook
OUTLOOK Meg O’Neill Chief Executive Officer and Managing Director
Slide 34: Resilient hydrocarbon demand in a range of scenarios
Resilient hydrocarbon demand in a range of scenarios OIL GAS NEW ENERGY Oil demand (EJ)1 Natural gas demand (EJ)1 Low carbon hydrogen demand (EJ)1 200 200 200 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 2025 2
Slide 35: Clear priorities
Clear priorities SUSTAINABLE CORE BUSINESS MAJOR PROJECTS FUTURE Deliver core business safely, reliably and Deliver first oil from Sangomar Extend decarbonisation plans to heritage cost-efficiently with reduced emissions BHP operating assets Progress Shenzi North and Scarborough Complete merger inte
Slide 36: Annexure
Woeside AANNEXURE E: Energy
Slide 37: 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, $ billion Change in application of project RFSU and 2023 depreciation policy production f
Slide 38: 2023 full-year guidance
2023 full-year guidance Production guidance • Woodside’s production guidance is 180 – 190 MMboe LNG MMboe 83 – 85 Pipeline gas MMboe 40 – 42 • The production guidance is inclusive of major turnaround activity: Crude and condensate MMboe 50 – 55 • Pluto LNG major turnaround in Q2 2023, duration appro
Slide 39: Asset tables
Asset tables Depreciation and Operating revenue EBITDA1 EBIT3 Capital expenditure4 Production costs Asset amortisation2 $ million $ million $ million $ million $ million $ million Australia North West Shelf 3,307 2,722 683 2,039 116 159 Pluto 5,321 4,780 819 3,961 247 401 Wheatstone 1,156 1,010 (630
Slide 40: Realised price
Realised price Variance Products Units 2022 2021 % LNG produced1 $/boe 109 56 95 LNG traded2 $/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) $/bbl
Slide 41: Corporate performance
Corporate performance 2022 2021 Production volume MMboe 157.7 91.1 Operating revenue $ million 16,817 6,962 EBITDA1 $ million 11,234 4,135 EBIT2 $ 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 $ millio
Slide 42: 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 43: 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 44: 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