Woodside Energy Group Ltd · ASX:WDS
Woodside Energy — H1 2023 Earnings Presentation
44 slides from Woodside Energy's earnings presentation, Aug 22, 2023
Slide 1: Announcement: Half-Year 2023 Results Teleconference and Presentation
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, 22 August 2023 HALF-YEAR 2023 RESULTS TELECONFERENCE AND PRESENTATION A teleconference providing an overview of the ha
Slide 2: Half-Year Results Briefing 2023
HALF-YEAR RESULTS BRIEFING 2023 22 August 2023 www.woodside.com investor@woodside.com
Slide 3: 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 4: 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 • Woodside reports its petroleum resource estimates inclusive of all fuel con
Slide 5: Delivering core business, growth projects and returns
Delivering core business, growth projects and returns Reliable operating performance from global portfolio and 1 major turnarounds successfully completed NET PROFIT AFTER TAX 2 Continued execution of Sangomar and Scarborough and final investment decision taken on Trion $ 1.7 billion 6% earnings per
Slide 6: Strong operational performance and financial outcomes
Strong operational performance and financial outcomes OPERATIONAL PERFORMANCE FINANCIAL OUTCOMES TOTAL RECORDABLE INJURY RATE PRODUCTION VOLUME OPERATING REVENUE EBITDA2 1.72 per million work hours 91.3 66% 7.4 27% $ 4.9 23% MMboe billion billion Tragic fatality on North Rankin, strong Contribution
Slide 7: Investing in Woodside's future
Investing in Woodside’s future DELIVERING VALUE DELIVERING SUSTAINABILITY OUTCOMES NET EQUITY SCOPE 1 AND 2 SCARBOROUGH SELL-DOWN PROJECT DELIVERY GREENHOUSE GAS EMISSIONS2 ASSET DECARBONISATION PLANS Agreed sale of 10% Sangomar and On track for 2025 Developed for all interest in Scarborough net equ
Slide 8: Challenging safety performance
Challenging safety performance TRI and TRIR 35 1.74 1.80 1.72 2.00 30 25 1.50 Employee TRI Fatality during inspection work on a caisson at the 20 0.90 0.88 24 1.00 Contractor TRI 19 North Rankin Complex 15 10 15 0.50 11 TRIR per 8 5 8 million work 6 3 3 2 0.00 hours Shared learnings from fatality wi
Slide 9: Operational performance
Operational performance North West Shelf Project Pluto LNG Other Australia Gulf of Mexico/ Trinidad & Tobago ▪ LNG reliability of 97.6% ▪ LNG reliability of 99.9% ▪ Completed planned five-yearly ▪ First production achieved at achieved in the five months Ngujima-Yin FPSO the Argos platform for Mad ▪
Slide 10: 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 annualised dividend yield of 6.9%1 105 33 80 80% payout ratio and interim dividend payment value of $1.5 billion 76 55 Balanced cash flow an
Slide 11: Prices normalising following 2022 volatility
Prices normalising following 2022 volatility Oil and gas prices 160 90 120 Price environment reflective of economic headwinds and 60 US$/bbl high gas storage levels in Europe US$/MMBtu 80 2023 has highlighted a continued focus on energy security 30 with a number of long-term LNG contracts being sign
Slide 12: Robust prices relative to five year average
Robust prices relative to five year average Average realised price2 108 96 Portfolio actively positioned to realise benefits of 80 trading activities 66 65 74 $/boe 31% year-to-date gas hub exposure1 51 40 45 Revised full-year 2023 gas hub exposure guidance 36 between 27 – 33%1 H1 2019 H1 2020 H1 20
Slide 13: Robust LNG outlook; Scarborough expected online at opportune time
Robust LNG outlook; Scarborough expected online at opportune time Global LNG supply and demand gap3 800 Fine balance between expected supply and demand in near-term Demand Scarborough 600 first cargo Natural gas expected to play sustained role through the energy transition1 mtpa 400 Natural gas can
Slide 14: 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 15: Scarborough – 38% complete, targeting first LNG 2026
Scarborough – 38% complete, targeting first LNG 2026 H1 2023 HIGHLIGHTS ▪ Completed construction accommodation village ▪ Completed pipeline manufacturing ▪ Agreed sell-down of 10% Scarborough interest (upstream) to LNG Japan1 ▪ Scarborough Trunkline Installation (State Waters) Environment Plan accep
Slide 16: Trion – FID taken, targeting first oil 2028
Trion – FID taken, targeting first oil 2028 H1 2023 HIGHLIGHTS ▪ Final investment decision taken by Woodside ▪ Field development plan (FDP) approved by Joint Venture1 ▪ FPU engineering, procurement and construction contract executed with Hyundai Heavy Industries ▪ Drilling rig, FPU and floating, sto
Slide 17: Momentum building in the global hydrogen market
Momentum building in the global hydrogen market Low carbon hydrogen demand outlook (mtpa)1 250 20 200 10 Other Rise in national strategies, technology roadmaps and Methanol fiscal incentives 150 0 Other Industry 2023 2024 2025 2026 2027 2028 2029 2030 Shipping 100 Steel The US Inflation Reduction Ac
Slide 18: Portfolio of new energy opportunities
Portfolio of new energy opportunities Woodside Solar Heliogen Proposed solar facility expected to initially Initial 5 MW concentrated solar energy supply approximately 50 MW of solar energy system to prove concept of energy to Pluto LNG. Key electrical tie-in points delivery with nearly 24/7 availab
Slide 19: H2OK progressing towards FID readiness H2 2023
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 ▪ Construction bids received in July, and under review1 H2 2023 FOCUS AREAS ▪ Execute agreements for power and water sup
Slide 20: Building CCS options
Building CCS options Carbon capture and storage (CCS) portfolio options Catalysts for de-risking Browse CCS Bonaparte CCS Carbon capture technology CCS included as base case for Collaboration with industry to develop business Browse development concept case for large-scale carbon capture utilisation
Slide 21: Progressing asset decarbonisation
Progressing asset decarbonisation Avoiding and reducing emissions are Woodside’s priority Delivering emissions reductions pathways Potential impact of asset decarbonisation planning1 ▪ Woodside has a lower gross Scope 1 and 2 emissions +300kt +340kt intensity than the global average of a comparable
Slide 22: Financial Update
FINANCIAL UPDATE Graham Tiver Chief Financial Officer and Executive Vice President 21
Slide 23: Strong earnings and balance sheet from expanded global portfolio
Strong earnings and balance sheet from expanded global portfolio HY23 HY22 Change Operating revenue $m 7,400 5,810 27% EBITDA1 $m 4,888 3,971 23% Additional volume from former BHPP assets and Pluto- KGP Interconnector, impacted by lower prices and EBIT1 $m 2,791 2,982 6% planned turnaround activitie
Slide 24: 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 flow1,2 $ 2.9B Investing cash flow1 $ 2.6B Net debt1 $ 3.2B Dividend determined $1.5B Speci
Slide 25: Expanded portfolio offsetting lower prices and planned turnarounds
Expanded portfolio offsetting lower prices and planned turnarounds Operating revenue EBITDA1 Underlying NPAT1,2 7.4 1.9 1.8 4.9 5.8 4.0 $ billion $ billion $ billion 2.5 2.3 1.9 1.5 1.5 0.4 1.0 0.4 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
Slide 26: Investing in growth
Investing in growth Operating cash flow Investing cash flow1 Free cash flow2 2.9 2.6 1.1 2.5 $ billion $ billion $ billion 1.5 1.3 1.5 0.3 1.1 1.0 1.0 0.8 0.9 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 Benef
Slide 27: Cost performance impacted by planned turnarounds
Cost performance impacted by planned turnarounds Production cost2 84 Major turnarounds 413 Production cost (BHPP) Heritage Woodside costs remain in line with H1 2022 $ million 86 65 Full period contribution of former BHPP assets 218 224 225 311 310 Production cost (WDS) changing cost mix H1 2019 H1
Slide 28: Maintained 80% cash margin in lower price environment
Maintained 80% cash margin in lower price environment Cash margin1 CASH MARGIN1 Inclusion of additional five months BHPP revenue 57.4 Additional Interconnector cargoes Revenue impacted by planned Pluto and Ngujima-Yin $/boe turnarounds 73% 80% 82% 80% PRODUCTION COSTS 85% (Based on sales boe excludi
Slide 29: Positioned to deliver strong shareholder returns and business priorities
Positioned to deliver strong shareholder returns and business priorities Net debt and gearing1 4.5 30% 3.9 3.8 4.0 25% 3.5 3.2 3.0 2.8 20% Gearing and net debt increased in line with planned 2.5 Target 10-20% $ billion 15% gearing through capital expenditure1 2.0 the cycle 1.5 10% 1.0 0.6 5% Net deb
Slide 30: 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 Total forecast $6.0 – 6.5 billion dollars of capital 6.1 Undrawn facilities $ billion expenditure in 2023 remains unchanged Cash Liquidity S
Slide 31: 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 Australian tax contribution (paid in the period)4 3.7 2.7 >A$1 billion in PRRT paid in the past 12 months1 A$2,850m | Corporate income tax A$ billion >US$300 million of foreign tax paid in H1 20232 Global all-in effective tax rate
Slide 32: Outlook
OUTLOOK Meg O’Neill Chief Executive Officer and Managing Director 31
Slide 33: The investment case – a global energy supplier
The investment case – a global energy supplier HIGH QUALITY DISCIPLINED CAPITAL POSITIONED FOR THE PORTFOLIO MANAGEMENT ENERGY TRANSITION Scale, diversification and resilience Framework established to optimise value Agile, flexible and adaptable as the to deliver enduring value and shareholder retur
Slide 34: 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 35: 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 Execute core business safely, reliably and work on Sangomar FPSO Prepare for FID readiness at H2OK and cost-efficiently with reduced emissions Wood
Slide 36: Annexure
ANNEXURE 35
Slide 37: 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 assets offset by lower realised inflationary pressures One-off transactions and tax impacts dividend of 80
Slide 38: 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 Investment expenditure guidance (unchanged)1 • Woodsi
Slide 39: Asset tables
Asset tables Depreciation and Operating revenue EBITDA1 EBIT1 Capital expenditure3 Production costs Asset amortisation2 $ million $ million $ million $ million $ million $ million Australia North West Shelf 1,917 1,549 406 1,143 52 99 Pluto 1,834 1,608 412 1,196 122 231 Wheatstone 511 451 221 230 25
Slide 40: Realised price
Realised price Products Units H1 2023 H1 20224 Variance5 LNG produced1 $/boe 88 89 (1) LNG traded2 $/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 mont
Slide 41: Corporate performance
Corporate performance H1 2023 H1 2022 Production volume MMboe 91.3 54.9 Operating revenue $ million 7,400 5,810 EBITDA1 $ million 4,888 3,971 EBIT1 $ 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 1,740
Slide 42: 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 43: 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 44: 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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