Navigating Market Shifts: Woodside Energy's Resilient Performance in 2025
Profitability Challenges Amidst Market Headwinds
In 2025, Woodside Energy experienced a notable decrease in its net profit after tax (NPAT), which fell by 24% to $2.71 billion, a reduction from $3.57 billion in the previous year. This decline was predominantly influenced by the softening of global commodity prices. The company's underlying NPAT also saw an 8% reduction, settling at $2.64 billion, down from $2.88 billion in 2024. These figures highlight the significant impact of external market forces on the company's financial returns despite strong operational performance.
Record Production and Operational Excellence
Despite the dip in profits, Woodside Energy achieved an impressive milestone by producing 198.8 million barrels of oil equivalent (mboe) in 2025, equating to 545,000 barrels of oil equivalent per day (boepd). This output not only exceeded the company's own forecasts but also surpassed the production levels of 2024. A key contributor to this success was the Sangomar asset in Senegal, which consistently operated at its full capacity of 100,000 barrels per day with nearly 99% reliability for most of the year. This exceptional operational efficiency was a critical factor in mitigating the financial impacts of lower prices.
Stable EBITDA and Enhanced Cash Flow
The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) remained remarkably stable, registering $9.277 billion, almost identical to the $9.276 billion recorded in 2024. This stability led to an improved margin of 71%, up from 70% in the previous year. The Sangomar asset played a crucial role in this, contributing $1.7 billion to EBITDA in 2025. Furthermore, operating cash flow saw a substantial increase of 23%, reaching $7.19 billion, driven by robust operational performance, Sangomar's contributions, and reduced tax outlays. Free cash flow also turned positive, moving from a negative $293 million in 2024 to a positive $1.88 billion in 2025, bolstered by divestments and strategic transactions.
Strategic Capital Allocation and Future Outlook
Woodside Energy's acting CEO, Liz Westcott, emphasized that the company's strong results underscore its disciplined strategy and commitment to safe and sustainable operations. The company has returned approximately $11 billion in dividends to shareholders since its merger in 2022, while also reinvesting in its core business and refining its portfolio. Looking ahead to 2026, Woodside projects a full-year production guidance of 172–186 mboe, accounting for a major turnaround at the Pluto liquefied natural gas (LNG) Train 1. Significant progress is also being made on key projects like the Scarborough Energy Project, the Louisiana LNG project, and Trion, all of which are advancing towards their targeted completion dates, demonstrating Woodside's forward-looking investment strategy.