The Woodside Energy Group Ltd (ASX: WDS) share price is under the spotlight after reporting its FY25 first quarter update.
Woodside is Australia’s biggest oil and gas business. It has projects across multiple geographic regions, including Asia Pacific and North America.
Woodside FY25 first quarter update
The business said it delivered quarterly production of 49.1 million barrels of oil equivalent (MMboe) in the three months to 31 March 2025, which was down 4% from the fourth quarter of 2024 because of weather impacts at North West Shelf and unplanned outages at Pluto.
But, this was partially offset by higher production at Shenzi and Atlantis.
Year on year, quarterly production increased 9% from the first quarter of 2024 due to the addition of Sangomar (Senegal) production.
Turning to revenue, quarterly revenue was US$3.3 billion, down 5% from the fourth quarter of 2024 because of the lower production and lower oil-linked prices. However, year on year, quarterly revenue rose 13% thanks to Sangomar starting up in July 2024 and higher gas hub-linked prices.
Project progress
Woodside said it is executing strongly on its project, with all projects on schedule and budget.
The Beaumont New Ammonia Project was 90% complete, with phase 1 of the project on track for starting up in the second half of 2025.
The Scarborough energy project was 82% complete and remains on track for its first LNG cargo in the second half of 2026.
Woodside also said that the Trion project was 26% complete, which remains on track for its first oil in 2028.
These projects could help support the Woodside share price in the coming years.
Other developments
The company said it’s aiming to further streamline its portfolio and generate near-term cash flow by divesting the Greater Angostura assets.
It also said that after the end of the quarter, it entered into an agreement for the sale of a 40% interest in Louisiana LNG Infrastructure. It also said that after the quarter, it signed an LNG sale agreement with Uniper to supply up to 2 million tonnes per annum.
Final thoughts on the Woodside share price
With the Woodside share price down approximately 30% in the last year, it’s a lot cheaper. Investor sentiment is weak, which may be the right time to invest in a commodity business like this one.
Gas/LNG should still be an important part of the global energy mix for many years to come, so I think Woodside’s earnings are longer-term than some investors may be expecting.
It could be an option for dividend income, if we put any environmental concerns aside.
