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Woodside Scraps Clean Energy Targets Amidst Profit Surge

Created at 25 Aug · 3:36 AM2 sources↑ Market-relevant2 events
IN SHORT

Woodside Energy has abandoned its longer-term emissions target and $5 billion in planned clean energy spending by 2030 to focus on its core oil and gas business. The Australian company reported a 7% rise in first-half profit to $1.33 billion.

Key Numbers

$1.33 billionfirst-half underlying net profit after tax
7%rise in first-half profit
$5 billionplanned clean energy spending by 2030
2030emissions reduction target year
57 centsinterim dividend per share
$74average realised price per barrel of oil equivalent
1%Woodside Energy share price drop
A$33.45Woodside Energy share price

Who's Involved

Woodside Energy
Australian oil and gas company that scrapped clean energy targets
Liz Westcott
CEO of Woodside Energy
Meg O'Neill
Woodside's former CEO who implemented clean energy plans

↳ Why This Matters

Woodside's decision reflects a broader trend in the energy sector where companies are prioritizing immediate profits from fossil fuels over long-term clean energy investments, potentially impacting global decarbonization efforts.

Key facts

  • Woodside Energy abandoned its longer-term emissions target and $5 billion in planned clean energy spending by 2030.
  • The company reported a 7% rise in first-half profit to $1.33 billion.
  • CEO Liz Westcott cited a lack of customer support and economic viability for clean energy investments.
  • Woodside will maintain its 2030 emissions reduction target but cut its Scope 3 target.
  • The company declared an interim dividend of 57 cents per share.

Woodside Energy has abandoned its longer-term emissions target and $5 billion in planned clean energy spending by 2030, shifting focus to its core oil and gas business. The Australian company reported a 7% rise in first-half profit to $1.33 billion, exceeding estimates. CEO Liz Westcott cited a lack of customer support and economic viability for clean energy investments, including a green hydrogen project in Oklahoma. While the company will maintain its 2030 emissions reduction target, its Scope 3 target, covering emissions from product use, will be cut. Woodside's average realised oil price increased to $74 per barrel, contributing to the profit surge. The company declared an interim dividend of 57 cents per share, up from 53 cents last year. The decision follows a trend of major oil companies cutting renewable spending amid higher fossil fuel profits driven by geopolitical events.

Frequently asked questions

Woodside Energy is doubling down on fossil fuels and shifting away from clean energy and decarbonisation targets, with its new energy business to be guided by customer demand and commercial markets.

The company recorded a 7% increase in sales profit due to higher crude oil prices, with an average realised price of $74 per barrel of oil equivalent.

Woodside had previously committed to investing $5 billion in new energy products by 2030 and had Scope 3 investment and abatement targets.

What Happens Next

01Woodside will undertake a strategic review of its Beaumont New Ammonia clean energy asset.
02Woodside's new energy business will be guided by customer demand and commercial market viability.
CME Headlines
  • WTI Crude Oil futures slip to 85 as Middle East tensions persist.
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  • WTI Crude Oil futures slip to 85 as Middle East tensions persist.
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  • Feeder Cattle futures led livestock sell-off on import news.
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How It Developed

Woodside Energy scrapped its long-term emissions and clean energy targets.
Woodside reported a 7% rise in first-half profit.
The company will undertake a strategic review of its Beaumont New Ammonia clean energy asset.
CEO Liz Westcott stated the company tried and failed to make clean energy investments economic.
Woodside reported underlying net profit after tax increased 7% to $1.33 billion.
Woodside declared an interim dividend of 57 cents per share.
Shares of Woodside Energy were down 1% to A$33.45 per share.

Sources

T1
Woodside scraps clean energy target, posts 7% first-half profit riseReuters
T1
Woodside scraps long-term emissions and clean energy targets despite windfall oil profits caused by Iran warThe Guardian

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