Woodside share price tumbles on 12% quarterly revenue decline

ASX 200 investors are bidding down the Woodside share price today.

| More on:
sad looking petroleum worker standing next to oil drill

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Woodside Energy Group Ltd (ASX: WDS) share price is sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $29.45. In early trade on Friday, shares are swapping hands for $28.58, down 3.0%.

For some context, the ASX 200 is down 1.1% at this same time.

This comes on the heels of the release of Woodside's quarterly production update for the three months ending 31 March (Q1 2024).

Here are the highlights.

Woodside share price falls as production declines

The Woodside share price is in the red today after the ASX 200 oil and gas company reported producing 44.9 million barrels of oil equivalent (MMboe) over the three months.

That's down 7% from last quarter amid lower production at the company's Bass Strait, Pyrenees and Pluto projects. Increased production at its Mad Dog Phase 2 project helped offset some of the slowdown.

Quarterly revenue of $2.97 billion was down 12% from Q4 2023, impacted by lower realised prices and lower volumes. Woodside reported an average realised price of $63 per barrel of oil equivalent (boe), down 5% from the final quarter of 2023.

On its major project front, drilling of production wells kicked off at the Scarborough Energy Project, and the first Pluto Train 2 modules were delivered. The project was 62% complete at the end of the quarter. Management is targeting the first LNG cargo in 2026.

Across the world, the Sangomar Project floating production storage and offloading (FPSO) vessel arrived offshore Senegal with commissioning activities underway. The project was 96% complete at the end of the quarter. Woodside is targeting first oil in mid-2024.

The quarter also saw Woodside publish its Climate Transition Action Plan and 2023 Progress Report (CTAP).

Full-year guidance remained unchanged.

What did management say?

Commenting on the quarterly results failing to lift the Woodside share price today, CEO Meg O'Neill said:

Significant progress was made in the period on our three major growth projects. Commissioning activities are now underway at the Sangomar project in Senegal, on track for first oil in the middle of this year. Nineteen of the 23 production wells at Sangomar have now been completed.

In Western Australia, a milestone was marked with the arrival on site of the first modules for Pluto Train 2 and 13 modules were in place at the end of the quarter. Offshore, two flowlines were installed at the Scarborough field and drilling of the initial wells commenced…

During the period we completed the sale of a 10% non-operated interest in the Scarborough project to LNG Japan and entered into an agreement with JERA for the sale of a further 15.1% of the Scarborough joint venture.

Woodside share price snapshot

The Woodside share price is down 9% so far in 2024.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

Man holding Australian dollar notes, symbolising dividends.
Share Gainers

How a $9k investment in this ASX All Ords stock ballooned to $35,234 in just 3 years!

Shares in the ASX All Ords stock have rocketed even as it’s paid out market-beating dividends.

Read more »

A man sees some good news on his phone and gives a little cheer.
Energy Shares

Guess which ASX uranium stock is charging higher today

This stock is avoiding the market weakness on Friday. But why?

Read more »

A woman wearing a hard hat holds two sparking wires together as energy surges between them. representing the rising Li-S Energy share price today
Energy Shares

How much could a $10,000 investment in Woodside shares be worth in 12 months?

Here's what sort of returns one leading broker is expecting from the energy giant.

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

Buying ASX 200 energy shares? Here's the latest IEA oil forecast

What can ASX 200 energy shares like Woodside expect in the year ahead?

Read more »

uranium mining, uranium plant, uranium worker
Energy Shares

Will ASX uranium shares run higher on this 'historic' supply ban?

The United States President has signed fresh uranium policy into law.

Read more »

A little girl stands on a chair and reaches really, really high with her hand, in front of a yellow background.
Share Market News

Is the Woodside share price at a stretched valuation right now?

Some are still optimistic on the energy giant, despite softer oil prices.

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

ASX 200 energy shares slip as cracks appear in OPEC unity

Woodside and Santos shares are both underperforming the ASX 200 on Monday. But why?

Read more »

Happy man standing in front of an oil rig.
Energy Shares

Guess which ASX energy shares are buys and could deliver huge 12-month returns

Morgans sees scope for these energy producers to rise materially from current levels.

Read more »