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Woodside Energy Group Ltd (AU:WDS)
ASX:WDS
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Woodside Energy Group (WDS) AI Stock Analysis

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AU:WDS

Woodside Energy Group

(Sydney:WDS)

Rating:76Outperform
Price Target:
AU$30.00
▲(16.41% Upside)
Woodside Energy Group's overall stock score reflects strong financial performance, attractive valuation, and positive technical indicators. The earnings call provided additional confidence with record production and strategic project advancements. However, liquidity challenges and regulatory delays pose risks that need monitoring.
Positive Factors
Financial Performance
Woodside reported a strong FY24 result with underlying EBITDA of $9.28bn, in-line with consensus.
Growth Potential
A pipeline of organic growth projects is expected to drive 5% CAGR in production from 2024-2027.
Market Conditions
High European gas prices are attracting liquified natural gas away from Asia, potentially tightening the Asian market and supporting higher spot prices, which is beneficial for Woodside's LNG sales.
Negative Factors
Earnings Forecast
Depreciation and amortization rate for 2024 is higher than estimates, which has led to a reduction in the 2024 earnings per share and dividends per share forecasts by 6%.
Regulatory Approval
Federal approval remains pending for the North West Shelf Project life extension to 2070, which impacts the commercial viability of the Browse project.

Woodside Energy Group (WDS) vs. iShares MSCI Australia ETF (EWA)

Woodside Energy Group Business Overview & Revenue Model

Company DescriptionWoodside Energy Group Ltd engages in the exploration, evaluation, development, production, marketing, and sale of hydrocarbons in Oceania, Asia, Canada, Africa, and internationally. The company produces liquefied natural gas, pipeline natural gas, condensate, liquefied petroleum gas, and crude oil. It holds interests in the Greater Browse, Greater Sunrise, Greater Pluto, Greater Exmouth, North West Shelf, Wheatstone, Julimar-Brunello, Canada, Senegal, Greater Scarborough, and Myanmar projects. The company was formerly known as Woodside Petroleum Ltd and changed its name to Woodside Energy Group Ltd in May 2022. Woodside Energy Group Ltd was founded in 1954 and is headquartered in Perth, Australia.
How the Company Makes MoneyWoodside Energy Group makes money through the extraction and sale of oil and natural gas products. Key revenue streams include the production and export of liquefied natural gas (LNG), crude oil, and natural gas liquids (NGLs). The company benefits significantly from long-term contracts with major energy consumers in Asia and other regions, ensuring a stable revenue flow. Additionally, Woodside engages in strategic partnerships and joint ventures to expand its resource base and enhance operational efficiencies. This includes collaborations with other energy companies and investments in new technologies and projects that aim to diversify its energy portfolio, such as renewable energy initiatives and carbon capture and storage solutions.

Woodside Energy Group Earnings Call Summary

Earnings Call Date:Aug 18, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Positive
The earnings call highlights Woodside's strong financial performance, operational excellence, and safety achievements. However, challenges remain, particularly in decommissioning and regulatory delays impacting projects.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Reported a net profit after tax of more than $1.3 billion. EBITDA margin of 70% despite lower realized prices and inflationary pressures.
Record Production Levels
Achieved half year production of 548,000 barrels of oil equivalent per day and total production of 99.2 million barrels of oil equivalent.
Sangomar Performance
Sangomar generated revenue of almost $1 billion and maintained gross production at nameplate capacity with almost 99% reliability.
Operational Excellence
Reduced unit production costs by a further 7% and achieved high reliability of operated assets.
Gearing and Liquidity
Gearing remains within the target range of 10% to 20%, with strong liquidity at $8.4 billion.
Safety Achievements
No high consequence injuries recorded; 100,000 hours worked without lost time injuries across major projects.
Negative Updates
Decommissioning Challenges
Unexpected challenges with equipment removal at legacy fields Griffin, Minerva, and Stybarrow have resulted in increased costs.
Regulatory Delays
Pending final federal approval for the Northwest Shelf extension, which has been under rigorous assessment for over 6 years.
Beaumont Ammonia Project Delay
First ammonia production delayed to late 2025 due to construction delays, although no cost impact to Woodside.
Company Guidance
During the Woodside Energy Group Limited's half-year results conference call for 2025, significant metrics and strategic advancements were highlighted. For the first half, Woodside achieved a production of 548,000 barrels of oil equivalent per day, totaling 99.2 million barrels, with Sangomar contributing significantly to this output. The company reduced unit production costs by 7% and reported a net profit after tax exceeding $1.3 billion. A fully franked interim dividend of $0.53 per share was declared, reflecting a payout at the upper range. Major projects like Scarborough and Trion showed progress, with Scarborough being 86% complete and targeting LNG cargo by 2026. Additionally, the Louisiana LNG project, a key growth driver, is progressing towards first LNG in 2029, with Train 1 construction 22% complete. The company maintained strong liquidity with $8.4 billion and gearing within their target range, supported by innovative financing strategies, including a sell-down to Stonepeak. Woodside also made strides in sustainability, achieving no high consequence injuries and advancing their decarbonization plans.

Woodside Energy Group Financial Statement Overview

Summary
Woodside Energy Group demonstrates strong profitability margins amidst fluctuating revenue. The balance sheet reflects financial stability with a strong equity position and moderate leverage. However, cash flow analysis points to potential liquidity challenges, despite efficient income-to-cash conversion.
Income Statement
70
Positive
Woodside Energy Group's income statement reveals a volatile revenue trend with a recent decline from $13.99 billion in 2023 to $13.18 billion in 2024. Gross profit margin decreased to 43.1% in 2024, and net income is relatively strong at $3.57 billion. The EBIT margin is not available for 2024, but the EBITDA margin remains robust at 71.8%. Despite revenue fluctuations, profitability margins indicate operational efficiency.
Balance Sheet
75
Positive
The balance sheet shows a solid equity base with a stockholders' equity of $35.4 billion in 2024, giving an equity ratio of 57.8%. The debt-to-equity ratio is moderate at 0.33, suggesting manageable leverage levels. Return on equity is 10.1%, indicating decent returns on shareholder investments. Overall, the company's financial position appears stable with balanced leverage.
Cash Flow
65
Positive
Cash flow analysis highlights a decline in operating cash flow to $5.85 billion in 2024. Free cash flow increased slightly to $0.945 billion, though it remains low relative to net income, indicating potential cash constraints. The operating cash flow to net income ratio of 1.64 suggests efficient conversion of income to cash, but free cash flow growth remains a concern.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.18B13.99B16.82B6.96B3.60B
Gross Profit5.68B6.47B10.28B3.12B615.00M
EBITDA9.47B8.70B10.41B4.12B-3.32B
Net Income3.57B1.66B6.50B1.98B-4.03B
Balance Sheet
Total Assets61.26B55.36B59.32B26.47B24.62B
Cash, Cash Equivalents and Short-Term Investments4.11B1.95B6.88B3.35B3.78B
Total Debt11.62B6.50B6.45B6.61B7.40B
Total Liabilities25.11B20.19B22.19B12.24B11.75B
Stockholders Equity35.40B34.40B36.34B13.44B12.07B
Cash Flow
Free Cash Flow945.00M854.00M5.67B1.17B-96.00M
Operating Cash Flow5.85B6.14B8.81B3.79B1.85B
Investing Cash Flow-5.75B-5.58B-2.27B-2.94B-2.11B
Financing Cash Flow2.10B-5.00B-3.36B-1.42B-203.00M

Woodside Energy Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price25.77
Price Trends
50DMA
24.98
Positive
100DMA
23.23
Positive
200DMA
22.90
Positive
Market Momentum
MACD
0.22
Positive
RSI
49.52
Neutral
STOCH
17.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WDS, the sentiment is Neutral. The current price of 25.77 is below the 20-day moving average (MA) of 25.97, above the 50-day MA of 24.98, and above the 200-day MA of 22.90, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 17.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:WDS.

Woodside Energy Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
AU$48.88B10.818.51%6.44%17.13%61.35%
66
Neutral
$15.26B7.303.22%5.27%4.16%-60.82%
$1.79B27.16-1.02%6.55%
$781.65M6.2613.85%3.94%
$16.61B17.356.59%4.86%
45
Neutral
AU$362.77M57.35-4.01%801.92%-985.71%
35
Underperform
AU$377.80M-10.88%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:WDS
Woodside Energy Group
25.68
3.42
15.36%
BEPTF
Beach Energy
0.81
0.13
19.12%
KRNGF
Karoon Energy Ltd
1.04
0.11
11.83%
STOSF
Santos Limited
5.50
1.23
28.81%
AU:STX
Strike Energy Limited
0.11
-0.07
-38.89%
AU:TBN
Tamboran Resources Limited
0.16
0.02
14.29%

Woodside Energy Group Corporate Events

Woodside Energy Expands Australian Operations with Bass Strait Operatorship
Jul 29, 2025

Woodside Energy Group has agreed to take over operatorship of the Bass Strait assets from ExxonMobil Australia, enhancing its operational footprint in Australia. This strategic move is expected to generate over US$60 million in synergies and allows Woodside to pursue further production and reliability improvements, as well as future development opportunities, thereby reinforcing its position as a leading energy provider in the Australian market.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Group Boosts Production and Advances Key Projects in Q2 2025
Jul 23, 2025

Woodside Energy Group reported a productive second quarter with a 2% increase in production, reaching 50.1 million barrels of oil equivalent. The company has made significant strides in its projects, notably achieving an 86% completion rate for the Scarborough Energy Project and a 35% completion for the Trion Project. The final investment decision for the Louisiana LNG Project marks a strategic move to enhance Woodside’s global LNG positioning. Financially, Woodside has strengthened its liquidity through strategic divestments and bond issuances, further supporting its growth and shareholder returns. The company continues to focus on sustainability, aiming to reduce greenhouse gas emissions and manage decommissioning activities effectively.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Issues Unquoted Securities for Employee Incentives
Jul 11, 2025

Woodside Energy Group Ltd announced the issuance of 66,752 unquoted securities under an employee incentive scheme, which are not intended to be quoted on the ASX. This move is part of the company’s strategy to incentivize its employees, potentially impacting its operational dynamics and aligning employee interests with corporate goals.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$27.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Completes Strategic Sell-Down of Louisiana LNG Stake to Stonepeak
Jun 24, 2025

Woodside Energy Group has completed the sell-down of a 40% interest in Louisiana LNG Infrastructure LLC to Stonepeak, a global investment firm. This transaction, which involves Stonepeak contributing $5.7 billion towards the project’s capital expenditure, is expected to enhance the economics of the Louisiana LNG project and strengthen Woodside’s capacity for shareholder returns. The partnership with Stonepeak marks a significant milestone for Woodside, as it prepares for the first cargo from the Scarborough Energy Project in 2026. The deal underscores the strategic importance of Louisiana LNG in the growing global demand for cleaner energy solutions.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$23.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Secures Approval for North West Shelf Project Extension
May 28, 2025

Woodside Energy Group has welcomed the Federal Government’s proposed environmental approval for the North West Shelf Project Extension, a move that ensures the continuation of this critical infrastructure. The project, which has contributed over A$40 billion in royalties and taxes since 1984, supports thousands of jobs and has been pivotal in supplying energy to Western Australia and international customers. The proposed conditions include cultural heritage management and air quality measures, with Woodside committed to reducing emissions and engaging with Traditional Owners to protect cultural landscapes.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Issues Unquoted Securities to Boost Employee Incentives
May 21, 2025

Woodside Energy Group Ltd announced the issuance of unquoted securities under an employee incentive scheme, which are not intended to be listed on the ASX. This move indicates the company’s ongoing efforts to incentivize its workforce, potentially enhancing employee engagement and aligning their interests with the company’s long-term goals.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Announces Director’s Interest Change
May 21, 2025

Woodside Energy Group has announced a change in the director’s interest, specifically regarding Marguerite (Meg) Eileen O’Neill. The notice details the acquisition of 177,117 Restricted Shares and 106,271 Rights under the Executive Incentive Scheme, while 21,087 ordinary shares were disposed of. This change reflects adjustments in the director’s holdings, which could have implications for the company’s governance and shareholder interests.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Secures $3.5 Billion in US Bond Offering
May 14, 2025

Woodside Energy Group Ltd has successfully priced a US$3.5 billion bond offering in the US market through its subsidiary, Woodside Finance Limited. The bonds, which are guaranteed by the parent company, will be used for general corporate purposes, potentially enhancing the company’s financial flexibility and operational capabilities.

The most recent analyst rating on (AU:WDS) stock is a Hold with a A$28.00 price target. To see the full list of analyst forecasts on Woodside Energy Group stock, see the AU:WDS Stock Forecast page.

Woodside Energy Group Secures Shareholder Approval for Key Resolutions at 2025 AGM
May 8, 2025

Woodside Energy Group Ltd announced the results of its 2025 Annual General Meeting, where all proposed resolutions were successfully passed. Key decisions included the re-election of directors Ann Pickard and Ben Wyatt, the election of Tony O’Neill as a director, approval of the remuneration report, and the grant of executive incentive scheme awards to the CEO and Managing Director. The overwhelming support for these resolutions reflects strong shareholder confidence in the company’s leadership and strategic direction.

Woodside Energy Group Releases Forward-Looking Business Announcement
May 8, 2025

Woodside Energy Group has released an announcement approved by its Disclosure Committee, which includes forward-looking statements regarding its business operations and market conditions. These statements reflect the company’s aspirations and are subject to various risks and uncertainties, emphasizing the need for stakeholders to consider these factors when evaluating the company’s future performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025