Woodside Energy Group Ltd: history, ownership, mission, how it works & makes money

A Brief History of Woodside Energy Group Ltd

Woodside Energy Group Ltd, an Australian oil and gas company, was established in 1954. Initially focused on oil exploration, Woodside made significant advances in the 1970s with the discovery of the North West Shelf project, which remains one of Australia’s largest and most significant oil and gas projects.

In 1984, the company became publicly listed on the Australian Securities Exchange (ASX) and has since expanded its operations internationally. By the end of 2022, Woodside reported total revenues of $5.87 billion, driven by strong oil and gas prices.

In 2018, Woodside completed the acquisition of the Australian assets of the oil and gas company, Integrated Gas, which significantly increased its production capacity. The company’s total production in 2022 was reported at 90.4 million barrels of oil equivalent (MMboe).

Woodside has made substantial investments in renewable energy and carbon capture technologies. Their portfolio includes projects such as the Scarborough gas project, which is expected to have a production capacity of approximately 2.5 million tonnes per annum (Mtpa) of LNG, with first gas targeted for late 2026.

In 2022, Woodside became a major player in the LNG market following its merger with BHP's petroleum business. This merger allowed Woodside to diversify its portfolio and increase its production capabilities. The combined company aims to leverage synergies and improve efficiency.

As of October 2023, Woodside's share price stood around $36.80, reflecting a significant increase from its 2022 levels. The company's strong financial position is evidenced by a net profit after tax of $3.29 billion for the year ending December 2022.

Woodside is committed to sustainability, targeting a reduction in greenhouse gas emissions intensity by 30% by 2030. The company continues to explore investment opportunities in renewable energy, aligning itself with global decarbonization efforts.

A Who Owns Woodside Energy Group Ltd

Woodside Energy Group Ltd is a leading Australian oil and gas company with a complex ownership structure. As of the latest reports, the company has a diverse shareholder base, including institutional and retail investors.

According to the most recent data from Woodside's 2023 Annual Report, the top shareholders are as follows:

As of September 2023, Woodside Energy's total issued shares stand at approximately 1.3 billion shares. This reflects a market capitalization of about AUD 32 billion.

The ownership distribution indicates a significant presence of institutional investors, which collectively account for more than 26% of the total shares. This level of institutional ownership suggests a stable shareholder base likely to influence company policies and governance.

Additionally, Woodside Energy's largest individual shareholder, Robert J. Baird, holds a stake of approximately 1.1%. This ownership underscores the trend of concentrated ownership among a small number of large investors, which is common in the energy sector.

Factors influencing ownership include the company's performance in the liquefied natural gas (LNG) markets, particularly given Woodside's major projects such as the Scarborough and Pluto LNG developments. The company reported a net profit after tax of AUD 2.5 billion for the fiscal year 2023, a considerable increase from AUD 1.9 billion in 2022. This growth has likely attracted the attention of various institutional investors seeking exposure to energy commodities.

Furthermore, Woodside is actively involved in environmental, social, and governance (ESG) initiatives, which are increasingly important to institutional investors. As part of its sustainability strategy, Woodside has committed to achieving net-zero emissions by 2050, which aligns with global investment trends toward sustainable and responsible investing.

Woodside Energy Group Ltd Mission Statement

Woodside Energy Group Ltd is committed to providing energy solutions that are safe, reliable, and environmentally responsible. Their mission is focused on creating long-term value for shareholders while producing energy that meets global demand.

The company aims to achieve sustainable growth through a balanced approach to energy production and responsible resource management. Woodside's vision incorporates safety, performance, and innovation in order to uphold its commitment to stakeholders.

As of 2023, Woodside has reported a significant transition in its operational strategy, emphasizing a shift towards renewable energy while maintaining its position in the oil and gas sector. This strategic pivot reflects the global movement towards cleaner energy sources, which is critical for the company's future growth.

Key financial metrics relevant to Woodside’s mission include:

In terms of project milestones, Woodside is also focused on major initiatives such as:

• Completion of the Scarborough gas project aiming for first production in 2026.
• Expansion of the Pluto LNG project, enhancing its overall capacity.
• Investment in renewable energy sources, including solar and hydrogen projects, to diversify its energy portfolio.

As of October 2023, Woodside’s emissions reduction strategy targets a 30% reduction in scope 1 and 2 emissions by 2030, with an overall goal of achieving net-zero emissions by 2050. This commitment underscores the importance of sustainability in their mission.

Woodside's approach to stakeholder engagement involves transparency and accountability, ensuring that community needs and environmental standards are prioritized. This is reflected in their annual sustainability report, where they outline progress against set targets, such as reducing carbon intensity by 10% by 2025.

The alignment of Woodside’s mission statement with their operational activities illustrates a comprehensive dedication to energy solutions that are not only economically viable but also socially and environmentally responsible. This holistic approach positions Woodside favorably for future growth and resilience in a transitioning energy market.

How Woodside Energy Group Ltd Works

Woodside Energy Group Ltd, an Australian oil and gas company, operates within the energy sector, focusing on the exploration, production, and natural gas supply. As of the end of Q3 2023, Woodside reported a production capacity of approximately 100 million barrels of oil equivalent (MMboe) for the year. The company is recognized for its significant role in the liquefied natural gas (LNG) market, particularly in the Asia-Pacific region.

In 2022, Woodside achieved a revenue of approximately AUD 8.09 billion, a substantial increase attributed to higher global gas prices and increased production volumes. In the first half of 2023, the company reported revenues of AUD 4.78 billion, with a net profit after tax of AUD 1.41 billion.

Woodside's operational strategy focuses on three primary areas: exploration, development, and production. The company is involved in several key projects, such as:

• BHP Merger: The 2022 merger with BHP's petroleum assets significantly expanded Woodside's portfolio, adding an estimated 20% increase in production capacity.
• Scarborough Project: Expected to start production in 2026, with anticipated production of around 3.5 million tonnes of LNG per year.
• Pluto LNG: Currently producing about 4.9 million tonnes per annum (mtpa) with expansion plans underway.

Financially, Woodside has maintained a strong balance sheet with a net debt of AUD 2.8 billion as of mid-2023, representing a gearing ratio of approximately 24%. The company has committed to a capital expenditure plan of AUD 1.5 billion for the ongoing development of its projects in 2023.

Woodside’s operational flexibility is enhanced by its diversified portfolio, which includes both traditional oil and natural gas assets. The company invests heavily in technology to improve efficiency and reduce emissions, aligning with global energy transition trends. As of 2023, Woodside has set ambitious targets to reduce its Scope 1 and 2 emissions by 30% by 2030.

With a strong focus on shareholder returns, Woodside declared an interim dividend of AUD 1.60 per share in August 2023, representing a yield of around 6.5%. The company aims for a sustainable payout ratio of 50-80% of net profit, underlining its commitment to providing value to its investors.

How Woodside Energy Group Ltd Makes Money

Woodside Energy Group Ltd is an Australian oil and gas company primarily engaged in the exploration, development, production, and marketing of hydrocarbons. The company generates revenue through various segments, including liquefied natural gas (LNG), oil, and other products.

In 2022, Woodside reported a revenue of A$ 9.56 billion, driven primarily by its LNG operations, which contributed approximately 70% of total revenue. The company's portfolio includes significant interests in large-scale LNG projects, notably the Pluto LNG and North West Shelf projects.

Revenue Segmentation

The following table outlines the revenue contributions from each segment for the year 2022:

Notably, Woodside's dominance in the LNG market has positioned it as one of the world's leading suppliers. In 2022, the company sold approximately 10.5 million tonnes of LNG, emphasizing its critical role in meeting global energy demands.

Cost Structure

Woodside's total expenses for 2022 were reported at A$ 5.72 billion, which includes costs of production, exploration expenses, and administrative costs. The breakdown can be summarized as follows:

• Production Costs: A$ 3.82 billion
• Exploration Expenses: A$ 1.05 billion
• Administrative Costs: A$ 0.85 billion

Woodside's focus on operational efficiency has enabled the company to maintain a competitive cost structure. The average production cost per barrel of oil equivalent (boe) for the year was approximately A$ 14.50.

Market Demand and Pricing

The pricing of LNG has shown substantial fluctuations, influenced by global supply and demand dynamics. In 2022, the average LNG price reached approximately A$ 19.50 per GJ, reflecting a significant increase compared to prior years due to the post-pandemic recovery and geopolitical tensions affecting energy supply chains.

Investment and Growth

Woodside continues to invest in growth opportunities. In 2022, capital expenditure was recorded at A$ 2.1 billion, primarily directed towards the Scarborough and Sangomar projects. The company aims to increase its production capacity to support future revenue growth.

Additionally, Woodside's strategic partnership and joint ventures, especially with international players, have enhanced its market position and allowed for shared technological advancements.

Future Outlook

Looking ahead, Woodside’s management anticipates revenue growth driven by strong global gas demand and ongoing development projects. The company is targeting an operational production range of 100-110 million boe by 2025.

In summary, Woodside Energy Group Ltd's revenue model leverages its extensive LNG capabilities, efficient cost management, and strategic growth initiatives, setting the stage for continued profitability in a dynamic energy market.