The Woodside Energy Group Ltd (ASX: WDS) share price is under the spotlight after the company gave its September quarterly update.
Woodside is one of the largest oil and gas businesses in the Asia Pacific region.
Woodside September quarterly update
The company reported record quarterly production of 53.1 million barrels of oil equivalent (MMboe), which was up 20% from the second quarter of 2024 due to the ramp-up of the Sangomer project, increased uptime across operated assets including 99.9% LNG reliability at Pluto and increased seasonal domestic gas.
Woodside said it achieved its nameplate capacity at Sangomar, with gross production rates of 100,000 barrels per day.
Quarterly revenue came to US$3.68 billion, up from the second quarter of 2024, largely due to Sangomar cargo sales and higher average LNG prices. The company said it capitalised on increased gas-hub prices by selling 39% of produced LNG cargoes in the quarter on prices linked to gas hub indices.
Full-year production guidance has been narrowed to a range of between 189 MMboe to 195 MMboe.
Project progress
Future completion of projects could help the Woodside share price as they add to earnings and end the construction costs.
Woodside reported the Scarborough energy project was 73% complete at the end of the quarter, with trunkline installation successfully completed in October. The project is on track for first LNG cargo to occur in 2026.
The energy business said the Trion project was 15% complete at the end of the quarter and is targeting first oil in 2028.
Woodside also said it had completed the acquisition of OCI’s Clean Ammonia project in Beaumont, Texas for US$2.35 billion, with 80% paid and the remaining to be paid at project completion. The project is targeting first ammonia production from 2025 and lower carbon ammonia from 2026.
Final thoughts on the Woodside share price
Sadly for shareholders, Woodside shares are down approximately 30% in the past year. It’s dependent on what happens with energy prices, which are volatile at best.
If energy prices do rise in the future, then this could be a good time to invest in the business. But, it’s very difficult to forecast what’s going to happen next.
For brave investors, it could be an opportunity with its all of its promising projects in the works. But, there are other ASX dividend shares I’d rather buy first.
