Woodside Energy Group: JQ26 result: Guiding to higher costs

研报英文原文证据摘录

Woodside Energy Group: JQ26 result: Guiding to higher costs

Woodside Energy Group UBS Research

Woodside JQ26 takeaways

2Q26 production beat consensus estimates by 2.4%, while sales volumes (and

revenues) beat by 13% supported by stronger realised oil pricing

Narrowed FY26 production guidance with Sangomar producing another qtr at

nameplate capacity (99kbbl/d) despite WDS having guided the asset to have

commenced decline

Beaumont New Ammonia production constrained to 69% of nameplate

capacity due to feed-stock availability (nitrogen & hydrogen). WDS is accountable

for securing feedstock as the adjacent Linde plant has not yet been commissioned

(likely delayed to 1H27). Higher feedstock costs is a key driver of higher than

expected line item guidance for 'feed gas, services & processing costs'. UBS incl.

these costs within its overall production cost estimates.

Major project delivery continues to be de-risked with Pluto T2/Scarborough

moving to 98% complete (excl. Pluto T1 modifications), Trion progresses to 64%

complete & LALNG progresses to 28% complete. We maintain a watch on the

impact of disruptions to transit through the Strait of Hormuz impacting the

timeline for LALNG given steel from Bechtel's fabrication facility in the UAE faces

shipping delays.

The Calypso deep-water gas discovery in Trinidad & Tobago (T&T) was assessed for

relative value in WDS' portfolio, translating to WDS contributing to $160-$200m

(pre & post-tax) impairments recognised by WDS over 1H. We consider this a

candidate for asset recycling given WDS divested the operating assets in Trinidad &

Tobago in mid 2025 but retained its exposure to the Calypso growth asset in T&T

(WDS 70%, BP 30%).

LNG marketing & trading realised a 6% trading margin over 2Q (Marketing