The Woodside Energy Group Ltd (ASX: WDS) share price is down 2% after the ASX energy share reported its March quarterly numbers.
Woodside is one of the largest oil and gas companies in the Asia Pacific region.
March 2024 quarter
For the three months to March 2024, it achieved quarterly production of 44.9 million barrels of oil equivalent (MMboe), which was down 7% from the fourth quarter of 2023 due to lower production at Bass Strait, Pyrenees and Pluto partially offset by increased production at Mag Dog phase 2.
Its average realised price for the quarter was $63 per barrel of oil equivalent (BOE), which was a reduction of 5% quarter on quarter, or a 25% fall year on year.
Project progress
Woodside is working on a number of projects, and the ASX energy share provided some updates. These projects will play a large part in the success of the Woodside share price in the future.
The Scarborough energy project commenced drilling of production wells and the first Pluto train 2 modules were delivered to the site. The project was 62% complete at the end of the quarter and it’s targeting the first LNG cargo in 2026.
The floating production storage and offloading for the Sangomar project arrived offshore Senegal. Commissioning activities have started. Sangomar was 96% complete at the end of the quarter and it’s targeting first oil in mid-2024.
Woodside’s Trion project continued to progress engineering, procurement and contracting activities including the award of the subsea marine installation contract.
There has been continued offtake discussions for the (hydrogen) H2OK project and progressed commercial agreements for the Woodside solar project.
Management comments
The Woodside CEO Meg O’Neill said:
During the period we completed the sale of a 10% non-operated interest in the Scarborough project to LNG Japan and entered into an agreement with JERA for the sale of a further 15.1% of the Scarborough joint venture.
We are very pleased to have participants of the calibre of LNG Japan and JERA in Scarborough. Their support for the project demonstrates the quality of the asset and the importance of gas to Japan’s energy mix.
We continue to deliver on our strategy to thrive through the energy transition and we published our Climate Transition Action Plan and 2023 Progress Report in February. As Australia’s largest energy company, feedback arising from our engagement with investors and stakeholders reflects the challenges and complexities of navigating the energy transition.
Final thoughts on the Woodside share price
The ASX energy share is back to a share price we’ve not seen since the first half of 2022.
I wouldn’t call Woodside a cheap buy yet, but I think it’s looking more interesting on a cyclical viewpoint considering there’s a fair chance energy prices could rise amid the volatility in the Middle East.
The environmental side of things may not appeal to some investors, and I’d suggest there are a fair few other ASX dividend shares that could be better ideas for long-term growth.
