In a corporate strategy reset, Woodside Energy is pulling back from clean energy spending and putting more capital behind oil and LNG. The Australian producer retired its scope three emissions target, dropped a plan to spend $5 billion on clean energy projects by 2030, and placed its Beaumont New Ammonia project in Texas under review.
Chief Executive Liz Westcott said weaker customer appetite and delays in policy support had changed the investment case. Woodside now wants every project to compete for capital on the same basis and expects the reset to help deliver $350 million in annual cost savings from 2028.
First half net income increased 27 percent to $1.7 billion as stronger oil and LNG prices offset lower output. Production fell 13 percent to 86.5 million barrels of oil equivalent because of natural decline, a cyclone, maintenance at Pluto LNG and other facilities, and portfolio changes.
Woodside kept its scope one and two emissions reduction target and said LNG remains central to long term demand. The company declared an interim dividend of 57 cents per share, while its Sydney shares rose as much as 2.9 percent before reversing gains. The capital shift makes LNG growth and shareholder returns the priority, but it is likely to deepen pressure from investors concerned about the company’s climate plans.