Key facts
- Woodside Energy reported a nearly 30% revenue jump to $6 billion due to surging LNG prices.
- Rio Tinto also reported significant revenue increases, benefiting from higher metal prices and AI-driven demand.
- The Iran conflict has disrupted global energy supplies, particularly LNG from the Middle East.
- Asian countries are seeking alternative LNG supplies from Australia.
- Higher energy prices are causing some Asian buyers to revert to coal.
Australian commodity producers Woodside Energy and Rio Tinto have reported significant revenue increases, driven by a confluence of factors including the ongoing conflict in Iran and surging demand for metals linked to artificial intelligence.
Woodside Energy, Australia's largest oil and gas producer, saw its revenue jump by nearly 30% to $6 billion in the past three months. The company is benefiting from higher liquefied natural gas (LNG) prices, which have escalated due to disruptions in the Middle East, particularly following Iran's actions impacting Qatari LNG hubs and the Strait of Hormuz. This has led Asian nations to seek alternative LNG cargoes from Australia.
Woodside CEO Liz Westcott noted that while prices are up, some price-sensitive buyers in Asia are reducing LNG consumption and returning to coal. However, the company anticipates long-term benefits as Asian buyers diversify their energy sources towards more geopolitically stable partners like Australia.
Revised Australian government forecasts now predict LNG export revenue to climb to $65 billion in the 2027 financial year, an $18 billion increase from previous projections, largely due to the conflict-driven price surge. Rio Tinto's earnings have also been boosted by higher metal prices, supported by demand from electrification trends and data center construction for AI development.