Woodside Energy (ASX:WDS) revenues hit hard by lower global commodity prices

• Woodside Energy (WDS) Q2 revenues were down nearly 30 per cent compared to Q1 2023
• The drastic shift in inflows underscores the larger macro story of energy’s slow return to a pre-COVID dynamic
• Woodside is suffering the same issue that saw Exxon recently warn shareholders to brace for a US$2 billion earnings hit
• Meanwhile, WDS’ controversial Scarborough project offshore WA is 38 per cent complete
• Woodside shares are up 1.24 per cent, trading at $35.99 at 11:38 am AEST

ASX200 giant Woodside Energy (WDS) has posted its June quarterly (Q2) for the year, reporting a 29 per cent decline in revenue as energy commodities – oil and gas – slowly return to pre-COVID prices.

That being said, Woodside still delivered more than $3 billion in revenue for Q2. That $3 billion, however, reflects a decline of 29 per cent Quarter-on-Quarter (QoQ).

The company sold slightly less than it did in Q1 with Q2 sales down 4 per cent.

Woodside announced it achieved a portfolio average realised price per barrel of oil equivalent (boe) in Q2 of $63.

Full-year production guidance from the company remains unchanged at between 180-190 million barrels of oil equivalent.

The development echoes that of Exxon Mobil which recently warned investors it expects to see an earnings hit of $2.9 billion (US$2 billion) due to the same factors affecting Woodside: a global decline in energy prices off the back of the COVID era.

Woodside continues to produce from its newly brought online Argos platform in the US Gulf of Mexico, and it continues to build the controversial Scarborough development offshore Western Australia which is now 38 per cent complete as at the end of June.

Its Sangomar project in West Africa, meanwhile, looks more expensive than it did at first: the company expects costs to be up to 13 per cent higher at an upper estimate of $7.6 billion (US$5.2 billion), up from $6.8 billion (US$4.6 billion).

Woodside shares were up 1.24 per cent, trading at $35.99 at 11:38 am AEST.