Woodside launches business review as storms hit quarterly output

Woodside Energy Group Ltd opened a business review aimed at improving accountability and simplifying the company just as severe tropical cyclones interrupted output in Western Australia, a combination that turned the quarter into a test of both operations and strategy. The producer said production for the period fell 8% from the previous quarter to 45.2 million barrels of oil equivalent, while average realized pricing rose 11% to $63 per barrel of oil equivalent. Full-year guidance stayed unchanged at 172 million to 186 million barrels of oil equivalent, with capital expenditure still set at $4.0 billion to $4.5 billion.

The weather hit came late in the quarter, when Severe Tropical Cyclones Mitchell and Narelle disrupted operations in Western Australia. Even so, Woodside said major assets including Sangomar, Shenzi, the North West Shelf Project and Pluto LNG continued to run with outstanding reliability, in some cases at or above 99%. That contrast, between short-term weather disruption and strong operating performance across core assets, underlined how much of Woodside’s business now depends on execution under volatile conditions.

Chief executive Liz Westcott said the company maintained safe and reliable operations across its global portfolio while delivering major projects to budget and schedule. She pointed to continued progress at Scarborough, Louisiana LNG, Trion and Beaumont New Ammonia, the lower-carbon services project Woodside says remains part of its strategic mix. Westcott, who became acting chief executive on 18 December 2025 before being appointed chief executive in 2026, is now leading the company through a period that also includes a permanent leadership transition.

Woodside’s annual general meeting, held on Thursday at the Crown Ballroom at Crown Towers in Burswood, Western Australia, was framed around the same message of discipline and long-term growth. Chair Richard Goyder and Westcott said the company remained well positioned to meet rising global energy demand through LNG investment, support domestic gas supply in Australia and advance lower-carbon services through Beaumont New Ammonia. Woodside also said its 2025 annual report highlighted strong revenue from Sangomar during its first 18 months of operations, reinforcing the contribution of new assets to the company’s broader portfolio.

The storm damage also pushed the story beyond the balance sheet. Woodside said Tropical Cyclone Narelle made landfall near Exmouth in late March, causing extensive damage to hundreds of homes and businesses and disrupting power and water services. On 22 April, the company said it would contribute A$1 million to Exmouth recovery efforts. For Woodside, the quarter showed how climate-linked weather risk and strategic uncertainty can arrive at the same time, forcing fossil-fuel producers to defend current output while proving their long-term plan still holds.