UPDATE: Woodside has just reported record production levels, but the company’s net profit has plummeted by nearly a quarter to $2.7 billion due to significantly lower oil and gas prices. This urgent news comes as the energy sector grapples with a global supply glut, with prices falling 20 percent in 2025, marking the worst year since 2020.
Despite achieving a staggering 198.8 million barrels of oil equivalent in production, the declining prices weighed heavily on Woodside’s financials. The underlying net profit after tax dropped to $2.6 billion, down 8 percent from 2024. Acting Chief Executive Liz Westcott emphasized the firm’s resilience, stating, “In a testament to the strength of our underlying business… we generated free cash flow of $1.9 billion.” This news highlights the challenges facing the energy sector even as production capabilities soar.
Westcott, who is stepping in for outgoing CEO Meg O’Neill, set to become BP’s first female leader on April 1, expressed optimism about the future. “Oil is a core product for Woodside underpinned by a robust demand outlook,” she explained. The International Energy Agency forecasts that the global supply issues will persist, affecting prices well into 2026.
Investors responded favorably to the earnings report, with Woodside’s shares rising by 1.4 percent to $27.48. The company declared a final dividend of 59 cents per share, an increase from 53 cents the previous year. “The strength of our base business has delivered returns for shareholders, with Woodside having returned approximately $11 billion in dividends since the merger completion in 2022,” Westcott noted.
In project developments, the Beaumont New Ammonia project in the US Gulf Coast achieved first production in December 2025, while the Trion project off Mexico is on track for first oil by 2028. Additionally, the Scarborough LNG project is expected to load its first cargo off the WA coast in 2026.
As the company navigates these turbulent waters, all eyes are on the upcoming leadership transition and how it might impact Woodside’s strategy moving forward. Analysts and investors alike are watching closely for updates on the search for O’Neill’s permanent replacement, expected to be announced in the first quarter.
Stay tuned for more updates as this story develops.
