- 500 jobs to go globally
- New capital framework and shareholder distribution policy unveiled
- Targeting portfolio return on average capital employed of 12-15% by mid-2030s
- Says entering next phase from a position of strength,
Woodside (ASX: WDS) has revealed it plans to cut more than 500 jobs globally, representing at least 10% of its workforce.
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The staff reductions were unveiled today with the company stating it is sharpening operational and project execution and maximising value from its global LNG-led portfolio.
Supported by a new capital framework and shareholder distribution policy, the company is targeting portfolio return on average capital employed of 12-15% by the mid-2030s.
At its Capital Markets Day in Sydney, Woodside CEO and MD, Liz Westcott said the company is entering its next phase from a position of strength, giving Woodside greater capacity to invest in value-accretive growth opportunities and return capital to shareholders.
“Long-term demand for reliable energy remains compelling. Woodside’s multi-basin LNG position and deepwater oil capability, combined with sharper execution and capital discipline, position us to meet that demand and deliver value for shareholders.
“Woodside has world-class assets, deep operating and project capabilities and enduring customer relationships. We have returned nearly US$13 billion to shareholders since 2022 while building a portfolio positioned to generate strong cash flows into the next decade.
“Scarborough is 99% complete and on track for first LNG cargo this year, Trion is targeted for first oil in 2028 and Louisiana LNG is targeted for first LNG in 2029. Together with our base business, these projects are expected to support sales volume growth of more than 30% to approximately 280 million barrels of oil equivalent in 2032, and generate more than US$40 billion of adjusted operating cash flow from 2027 to 2032.
“Our priority now is to extract more value from our portfolio. We are targeting US$400 million of annual structural cost reductions from 2028, improving operational efficiency and productivity, and actively managing the portfolio to concentrate capital where it earns the highest returns.
“We announced a new distribution policy of 20 – 40% of adjusted operating cash flows. We will prioritise 20% of adjusted operating cash flow as a base dividend, with up to another 20% available for additional dividends and/or buybacks. We also announced our new capital framework under which growth must compete for capital against these additional distributions.
“We are targeting portfolio return on average capital employed of 12–15% by the mid-2030s. Delivery of our committed projects, the structural cost program, active portfolio management and increased value capture through marketing and trading will support this improvement.2
“We have set a new 2035 net equity Scope 1 and 2 greenhouse gas (GHG) emissions intensity target of 30% below Woodside’s 2025 gross equity Scope 1 and 2 GHG emissions intensity baseline.3 The new target reflects our focus on improving operational efficiency where safe, technically and commercially appropriate.”
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