Why is the Woodside share price sinking today?

Woodside shares are under pressure on Wednesday. But why?

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

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed yesterday trading for $25.73. In morning trade on Wednesday, shares are swapping hands of $25.23 apiece, down 1.9%.

For some context, the ASX 200 is up 0.43% at this same time.

Here's what investors are mulling over today.

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Image source: Getty Images

Woodside share price slides on quarterly results

The Woodside share price is in the red following the release of the company's fourth-quarter report covering the three months to 31 December (Q4 2024).

Core figures for the quarter included quarterly revenue of $3.47 billion. That was down 6% from Q3 2024, which Woodside said was primarily due to lower seasonal demand at Bass Strait.

That lower demand was also said to be the cause of the 3% dip in quarterly production, which came in at 51.4 million barrels of oil equivalent (MMboe). Quarterly production was also hampered by the unplanned shutdown at Woodside's Pluto project.

Adding tailwinds for the Woodside share price over the quarter, the company's Sangomar project shone brightly, producing 75 thousand barrels of oil equivalent per day (Mboe/day). That helped drive record full-year 2024 production for the company of 194 MMboe (530 Mboe/day). This came in at the top end of Woodside's 2024 full-year production guidance range.

On the major projects front, Woodside's Scarborough Energy project was 78% complete at the end of the quarter. The final Pluto Train 2 modules arrived at the Pluto LNG site in December. Scarborough remains on target for its first LNG cargo in 2026.

The earlier stage Trion project was 20% complete at the end of the quarter. Construction of the floating production unit commenced in November, with first oil targeted for 2028.

The quarter also saw Woodside complete the sale of a 15.1% non-operating participating interest in its Scarborough Joint Venture to JERA for some US$1.4 billion.

What did management say?

Commenting on the results that have yet to lift the Woodside share price today, CEO Meg O'Neill said:

Our high-quality assets continued to deliver outstanding performance in the quarter, underpinned by Sangomar producing 75 thousand barrels of oil equivalent per day at 95% reliability, driving record annual production of 194 million barrels of oil equivalent.

We also saw a strong contribution from Mad Dog in the Gulf of Mexico, with a full year of Argos production at peak rates.

Addressing Woodside's environmental goals, O'Neill said, "Conducting our business sustainably underpins our strategy to thrive through the energy transition."

She added:

Preliminary data shows a 14% reduction in our net equity Scope 1 and 2 emissions in 2024, from our stated starting base. Whilst we are on track to meet our scope 1 and 2 net reduction targets, with the strong start-up of Sangomar, our absolute emissions did increase in 2024.

Looking at what could impact the Woodside share price in the year ahead, O'Neill said, "We will continue to pursue targeted and strategic opportunities to simplify our business and sharpen our focus to deliver long-term shareholder value."

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.

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