Woodside Energy cuts 2026 production forecast; Q3 revenue rises

Woodside Energy has reduced its production projections for 2026, citing lower expected volumes from its Texas Beaumont New Ammonia plant and other factors. For the three months ending September 30, the company reported revenue of $4.28 billion, up from $3.36 billion a year earlier. Now anticipating annual production of 174 to 181 million barrels of oil equivalent, Woodside noted the limited operation of the Beaumont New Ammonia facility, a shorter timeline for the Scarborough LNG project's first LNG, and reduced output from the Okha floating production, storage and offloading vessel as contributing factors.

The Beaumont New Ammonia unit operated at only 69% of its capacity during the quarter due to supply chain issues and a brief shutdown following a safety incident. The firm plans to initiate a review process to adjust its investment in the project. Despite a 9% year-over-year decline in production volumes to 46.2 million barrels of oil equivalent, Woodside saw a 40% increase in the average realized price for its products to $84 per barrel of oil equivalent, driven by robust global oil and gas prices. The company's capital expenditure outlook for 2026 remains between $4 billion and $4.5 billion.