PERTH (miningweekly.com) – Higher energy prices have seen oil and gas major Woodside Energy report a 417% surge in net profits after tax for the first half of 2022, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 132%.

Woodside on Tuesday announced that net profits after tax for the first six months of 2022 had reached $1.64-billion, up from the $317-million in the previous corresponding period, while Ebitda was up from $2.5-billion to $5.8-billion in the same period.

CEO Meg O’Neill said the results reflect strong operational performance and higher realised prices, which more than doubled year-on-year to $96.4/barrel of oil equivalent across the expanded portfolio.

“Our first results since the completion of the merger with BHP’s petroleum business highlight the increased financial and operational strength delivered by our larger, geographically diverse portfolio of high-quality operating assets.

“Production for the half-year was 19% higher at 54.9-million barrels of oil equivalent, benefiting from the contribution in the month of June of the former BHP assets and improved reliability at our liquefied natural gas (LNG) facilities.

“In particular, production from Pluto was increased by the start-up of Pyxis Hub and the commencement of gas flows through the Interconnector pipeline to Karratha gas plant (KGP). This well-timed investment allowed us to supply three LNG cargoes, one condensate cargo and pipeline gas into a strong market, generating $419-million in revenue and delivering additional value to our shareholders.”

O’Neill said that the start-up of the Pluto-KGP Interconnector also marked the beginning of the North West Shelf project’s transformation into a tolling facility, which is essential to the long-term future of Australia’s first and largest LNG plant.

“Our subsea project teams also successfully delivered the Greater Western Flank Phase 3 and Julimar-Brunello Phase 2 projects in Australia, and the Shenzi subsea multi-phase pump in the Gulf of Mexico.

“We are increasing activities at our Scarborough and Pluto Train 2 projects in Western Australia, with all major equipment items procured, fabrication of the floating production unit topsides and Pluto Train 2 construction works underway, the subsea trees for the initial development phase complete and pipeline manufacturing progressing.

“The Sangomar Field Development Phase 1 in Senegal is also progressing strongly, with drydock activities for the floating and production storage operation conversion completed during the period and the subsea installation campaign commencing in August. A second drillship commenced drilling in July, supporting the 23-well development drilling campaign.”

Woodside is targeting first oil at Sangomar in the second half of 2023.

She told shareholders that Woodside also continued to deliver a disciplined approach to capital management, generating $2.5-billion of free cash flow during the half and demonstrating its commitment to shareholder returns with the declaration of a fully franked interim dividend of $1.09 a share.

“We are the largest energy company listed in Australia and we are proud to be making a significant economic contribution through our continued investment in existing operations and growth projects and through our tax payments, including petroleum resource rent tax. We paid approximately A$700-million in Australian taxes, royalties and excise in the first half of this year.

“The upheavals in global and Australian energy markets witnessed over the course of the past six months have shone a spotlight on the importance of gas in the world’s energy mix and underscore our confidence in the longer-term demand outlook for gas, which makes up 70% of Woodside’s portfolio,” O’Neill said.

“Safe and reliable supplies of gas are not only critical to global energy security but will play a key role as our customers seek to decarbonise, alongside new energy sources such as hydrogen and ammonia that Woodside is investing in.

“Our strategy to thrive through the energy transition as a low-cost, lower-carbon energy provider continues to progress through recently announced initiatives across hydrogen refuelling, carbon capture and storage and carbon to products technologies,” she said.