Woodside Energy profit beats expectations as CEO search nears completion

Woodside Energy has delivered a better-than-expected annual profit as its search for a new chief executive to succeed Meg O’Neill nears completion.

Australia’s biggest oil and gas group on Tuesday reported a 24 per cent fall in full-year earnings to $US2.72 billion, with the more closely watched underlying profit off 8 per cent at $US2.65b.

However, both results bettered market expectations, as did Woodside’s final dividend of US59¢ a share.

“Woodside continues to deliver above guidance, providing further comfort a more conservative approach has taken hold,” MST Financial senior energy analyst Saul Kavonic said.

“The last several months suggest Woodside may even have started learning what the market likes to see — well-managed expectations and largely boring results,” Mr Kavonic said.

Tuesday’s results were delivered by Woodside’s Australian operations boss, Liz Westcott, who has run the group as interim chief executive since Ms O’Neill quit in mid-December to take the helm of global energy giant BP in London.

Ms Westcott is one of several internal candidates for the Ms O’Neill’s job, with Woodside aiming to name a permanent replacement by the end of March.

The Woodside annual report, which was released along with the financial results, show Ms O’Neill passed up a potential $19.4m in restricted shares and performance rights that lapsed or were forfeited when she quit the group.

It also shows that Woodside has gifted $750,000 in retention share rights to each of chief financial officer Graham Tiver, international boss Daniel Kalms and chief commercial officer Mark Abbotsford as encouragement for them to remain with the company while it transitions to the new CEO.

The lower profit was influenced by lower realised prices for Woodside’s oil and gas in 2025, though that impact was reduced by its record production of 198.8 million barrels of oil equivalent.

Woodside’s revenue dipped 1 per cent to $US12.98b.

Ms Westcott described the annual results as “outstanding”, saying they reflected Woodside’s disciplined execution of its strategy.

She said the profit and free cashflow of $1.9b were testament to “the performance of the base business during a period of increased capital expenditure and softening prices”.

“We are re-investing in the business and actively refining the portfolio, while maintaining a strong balance sheet and gearing within the targeted range.”

The new chief executive will take over as Woodside prepares to bring on the $16b Scarborough LNG project off WA at the end of 2026, and progresses development of the Trion oil field off Mexico and the Louisiana LNG project in the US. It is also ramping up its first ammonia project in the US.

Woodside has already sold down part of Louisiana LNG to reduce development costs, but it is pursuing the sale of up to another 20 per cent with other interested potential partners.

“We’re really pleased with the interest,” Ms Westcott told thewest.com.au.

“But we’re patient, we’re being disciplined and we’re looking for value.

“We’re looking for partners who want to be there for the long term, these are multi-decade investments; we are looking for people who have got strategic benefit to Woodside and complementary skills.”