Table of Contents
- Cyclones reduce volumes, but do not halt operations
- Better prices offset some of the drop in production
- Scarborough LNG nears its first shipment
- Trion makes progress in Mexico and adds future production
- Beaumont begins operations, although low-carbon ammonia production is delayed
- Woodside maintains its annual guide for 2026
Woodside Energy closed the first quarter of 2026 with lower hydrocarbon production, impacted by severe weather conditions in Western Australia. However, the Australian company maintained high operational reliability across its key assets and sustained progress on its major LNG projects.
The producer reported production of 45.2 million barrels of oil equivalent during the quarter, an 8% decrease compared to the previous period. The decline was primarily attributed to the impact of tropical cyclones on offshore operations and liquefied natural gas plants in Western Australia.
Cyclones reduce volumes, but do not halt operations
During the quarter, weather events impacted assets relevant to Woodside’s production. These included Wheatstone LNG, where cyclonic activity caused an unplanned outage and a temporary reduction in production.
Despite this scenario, the company highlighted that Sangomar, Pluto LNG, and North West Shelf operated with near 99% reliability. This performance helped mitigate the impact of the disruptions and reflected robust operational continuity at critical facilities for the oil and gas business.
In addition, scheduled maintenance and seasonal factors also influenced the quarterly result. The combination of these elements explains the lower volumes without altering the company’s annual forecast.
Better prices offset some of the drop in production
Although Woodside’s production declined, higher selling prices helped balance the financial result. The company reported an average price of $63 per barrel of oil equivalent, an 11% increase over the previous quarter.
With that support, revenues reached $3.26 billion, a 7% increase compared to the previous period. The improvement was due to a more favorable pricing policy and stable sales volumes in the oil and LNG markets.
Woodside also noted that LNG demand remains strong, especially for one-off shipments. The company further indicated that its exposure to geopolitical risks in maritime transport is limited, as its vessels do not transit the Strait of Hormuz .
Scarborough LNG nears its first shipment
The Scarborough LNG project remains a central component of Woodside’s growth strategy. The initiative has reached 96% completion and is still on track to deliver its first cargo in the fourth quarter of 2026.
This development is relevant to the company’s expansion in liquefied natural gas , a market that continues to gain importance due to global energy demand and security of supply needs. For Woodside, Scarborough represents additional capacity in a key long-term segment.
Meanwhile, Louisiana LNG has reached 24% completion and expects its first LNG plant to be operational by 2029. The project strengthens the company’s presence in the United States and expands its growth portfolio outside of Australia.
Trion makes progress in Mexico and adds future production
The Trion oil project , located in Mexico, has reached 56% completion. Woodside maintains its goal of starting production in 2028, which would add new volumes to its deepwater portfolio.
With Trion, the company complements its LNG focus with oil assets capable of generating cash flow in the coming years. This combination supports a capital-intensive growth strategy that is diversified by region and resource type.
Beaumont begins operations, although low-carbon ammonia production is delayed
The quarter also included progress in energy diversification. The Beaumont ammonia plant in the United States delivered its first shipment in February, and Woodside assumed full operational control in March.
However, the company acknowledged delays in its goal of producing low-carbon ammonia. Supply constraints from third parties pushed that target to 2027.
Woodside maintains its annual guide for 2026
Despite the quarterly decline, Woodside maintained its annual production forecast of between 172 and 186 million barrels of oil equivalent. The decision points to a recovery during the remainder of the year, supported by operational normalization and the continuity of its core assets.
The appointment of Liz Westcott as chief executive officer also marked the quarter. The new CEO focused on cost discipline, operational efficiency, and streamlining decision-making as the company executes large-scale projects in LNG, oil , and new energy lines.
Going forward, the performance of Scarborough LNG, Louisiana LNG, and Trion will be key to measuring Woodside’s ability to convert its growth pipeline into additional production, even in an environment where extreme weather remains a significant operating factor.
Source: Woodside
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