Woodside's Strong Quarter
Woodside's Q2 Revenue Jumps 28% on Higher Prices as Scarborough Reaches 98% Completion
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Key Points
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Scarborough is 98% complete with all upstream infrastructure installed, and Woodside reported first gas from Scarborough achieved after the quarter, with first LNG cargo still targeted for Q4 2026.
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Operational reliability remained exceptionally high across key assets, with Sangomar uptime at 99.3% and Shenzi at 99.2%, while North West Shelf LNG and Pluto LNG reliability exceeded 97%.
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Woodside assumed operatorship of the Gippsland Basin assets in July, lifted its Browse JV stake to about 41.27% (pending approvals), and secured a new gas sales agreement to supply Alcoa’s Western Australian alumina refining operations through 2030.
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Sangomar’s production performance included near-nameplate output, with reported individual asset metrics in the quarter; notably, an average Sangomar production rate of 99 barrels per day on a 100% basis (equivalent to 86 bpd for Woodside’s share).
Woodside Energy posted Q2 2026 operating revenue of US$4.185 billion, up 28% from the previous quarter, as stronger commodity prices offset a dip in output, according to Kalkine Media. The company's average realised price hit US$85 per barrel of oil equivalent, even as production slipped 9% to 41.3 million barrels of oil equivalent due to planned maintenance and cyclone disruptions.
The flagship Scarborough gas project is now 98% complete, with first gas already achieved after the quarter closed. A first LNG cargo is still on track for Q4 2026, Scanx Trade reported.
Scarborough Crosses Finish Line Ahead of First Cargo
Scarborough's upstream infrastructure is fully installed. Woodside confirmed first gas from the field after June 30, setting up the company's most significant new supply addition in years. The first LNG cargo from the project is targeted for Q4 2026, TradingView reported. CEO Liz Westcott said the company continued to deliver "safe and strong operational performance" while "efficiently executing major growth projects."
Two other major projects are also moving forward. Trion, an offshore Mexico oil development, reached 64% completion and targets first oil in 2028. Louisiana LNG hit 28% completion and is aimed at first LNG in 2029, according to Kalkine Media.
Near-Perfect Reliability Across Key Global Assets
Woodside's operating assets ran at exceptional levels through the quarter. Sangomar, the company's Senegal oil field, hit 99.3% uptime. Shenzi in the Gulf of Mexico reached 99.2%. Both North West Shelf LNG and Pluto LNG in Western Australia exceeded 97% reliability, Scanx Trade reported.
Sangomar also produced at near-nameplate rates during the quarter. That strong reliability helped support Woodside's narrowed full-year production guidance of 174 to 185 million barrels of oil equivalent, Kalkine Media noted.
Revenue Surge Tied to LNG Price Boom and Geopolitical Tensions
The 28% revenue jump was largely driven by higher LNG prices. Geopolitical tensions in the Middle East pushed up energy demand globally, lifting Woodside's realised price to US$85 per barrel, according to Head Topics. That strong pricing more than covered the impact of the 9% production drop.
Capital spending for the quarter came in at US$784 million, reflecting continued budget discipline even as multiple large projects advanced simultaneously, Scanx Trade reported.
Portfolio Moves Expand Gas Supply Strategy in Australia
Woodside made several strategic moves during the quarter. The company assumed operatorship of the Gippsland Basin assets in July. It also lifted its stake in the Browse gas joint venture to about 41.27%, pending regulatory approvals, according to Kalkine Media.
Woodside also locked in a new gas sales deal to supply Alcoa's alumina refining operations in Western Australia through 2030. Together, these moves signal a clear push to grow domestic and export gas supply while keeping costs under control, TradingView reported.
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