Woodside Energy Group Ltd (ASX: WDS) shares are on the move on Wednesday morning.
At the time of writing, the energy giant's shares are up 1.5% to $25.22.
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Woodside shares rise on second quarter update
The catalyst for today's move has been the release of the company's second quarter update before the market open.
According to the release, Woodside reported quarterly production of 50.1 MMboe. This is up 2% from the first quarter of FY 2025.
Management highlights that this was underpinned by an exceptional performance from Sangomar, with 101 million barrels produced, contributing $510 million revenue for the quarter.
It also revealed that it achieved a strong realised quarterly price of US$62 per barrel for produced LNG, benefiting from diversified pricing and optimisation. Woodside sold 23.1% of produced LNG at prices linked to gas hub indices in the quarter. This represents 9.1% of total equity production.
In light of this, total revenue for the quarter came in at US$3,275 million. This is down slightly on the US$3,315 million recorded in the first quarter. However, it is a sizeable 8% jump on the prior corresponding period.
Capital expenditure was down 58% quarter on quarter to US$752 million.
Management commentary
Woodside's CEO, Meg O'Neill, was pleased with the quarter. She said:
We delivered strong production of 50 million barrels of oil equivalent for the quarter from our diverse portfolio of high-quality assets. At the same time, ongoing focus on cost control has enabled us to lower our unit production cost guidance for 2025.
As we marked the anniversary in June of first oil from Sangomar, the project's exceptional performance continued to make a strong contribution to quarterly results, with gross production reaching 101 thousand barrels per day at close to 100% reliability
O'Neill also spoke about the Louisiana LNG Project, which is now under development. She adds:
Our announcement in April of a final investment decision to develop the Louisiana LNG Project positions Woodside as a global LNG powerhouse, complementing our established Australian LNG business and enabling us to meet growing global demand from a broader range of customers.
Outlook
Woodside has updated its production and cost guidance for the full year.
It now expects production in the range of 188MMboe to 195MMboe. This compares to 186MMboe to 196MMboe previously.
As for costs, it is now forecasting unit production costs of US$8 to U$8.50 per barrel. This is down from its previous guidance range of US$8.50 to US$9.20 per barrel. Management advised that this reflects its strong production and cost performance during the first half.
