The Woodside Energy Group Ltd (ASX: WDS) share price is down 2% in reaction to the December 2024 quarterly update.
Woodside is a major oil and gas producer in Asia Pacific and it’s also building a more significant presence in North America.
Woodside’s quarterly update
The ASX energy share revealed that in the three months to December 2024, it produced 51.4 million barrels of oil equivalent (MMboe) in the fourth quarter of 2024, which was up 7% year on year, but down 3% compared to the third quarter of 2024.
Woodside’s average realised price per barrel of oil equivalent (BOE) was US$63, down 6% year on year and down 3% quarter on quarter.
This led to the company generating US$3.47 billion in 2024 Q4, up 3% year on year and down 6% year on year.
Woodside pointed to “outstanding” production from its Sangomar project, but this was offset by lower seasonal demand at Bass Strait and an unplanned shutdown at Pluto.
Project progress
The company said its Scarborough project was 78% complete at the end of the quarter, with the final Pluto Train 2 modules at the Pluto LNG site in December. The project remains on target for the first LNG cargo in 2026.
The Trion project was 20% complete at the end of the quarter, with construction of the floating production unit commencing in November. The first oil production is targeted for 2028.
Woodside also said it’s continuing construction of the Beaumont new ammonia project with phase one of the project on track for the start-up in the second half of 2025.
These projects could be important for the Woodside share price.
Management commentary
The Woodside CEO Meg O’Neill said:
With such a strong growth journey ahead of us, we recognise the need to remain focused. In the quarter, we announced an asset swap with Chevron, which streamlines our Australia portfolio by trading our equity in Wheatstone to increase our position in North West Shelf to 50% and support short-term cash generation.
This agreement positions Woodside to continue providing energy for local and global customers from the North West Shelf, further supported by the Western Australian Government’s environmental approval for the North West Shelf Project Extension received during the quarter.
We will continue to pursue targeted and strategic opportunities to simplify our business and sharpen our focus to deliver long-term shareholder value.
Final thoughts on the Woodside share price
It’s difficult to know how Woodside will perform this year – it depends what happens with energy prices, which at this stage is difficult to know.
The ASX energy share could pay a big dividend, but the profit direction is uncertain. There are other ASX dividend shares I’d rather buy first.
