Among the list of top dividend paying stocks, WDS could emerge to be an ideal pick. Given its growth potential and one of the high dividend stocks, investors can have their purpose of growth and passive income fully resolved.
Woodside Energy Group Limited (ASX: WDS)
Woodside Energy Group Limited (ASX: WDS) has delivered an exceptional financial and operational performance for the full year 2024, marked by record production levels, strategic acquisitions, and robust financial results. The company reported a total production of 193.9 million barrels of oil equivalent (MMboe), an increase driven by the successful ramp-up of the Sangomar oil project and outstanding reliability at its operated LNG assets. This strong production performance was complemented by a net profit after tax (NPAT) of $3.57 billion, a 115% increase year-on-year, despite a slight decline in underlying NPAT to $2.88 billion due to lower realized oil and gas prices.
Woodside is among best long term dividend stocks having maintained its commitment to shareholder returns, declaring a fully franked final dividend of US 53 cents per share, bringing the total full-year dividend to US 122 cents per share. This equates to a payout ratio of 80%, demonstrating the company’s ability to generate strong cash flows. Operating cash flow remained solid at $5.8 billion, with a cash margin of 82%, reflecting disciplined cost control and efficiency improvements across the portfolio. The unit production cost was reduced by 2% to $8.1 per barrel of oil equivalent (boe), reinforcing Woodside’s ability to operate efficiently in a volatile market environment.
The Sangomar oil project in Senegal played a pivotal role in Woodside’s 2024 success, ramping up to full capacity within nine weeks of its June 2024 startup. The project delivered 12.9 million boe in sales, generating approximately $950 million in revenue. This rapid ramp-up and high reliability of 94% in the fourth quarter highlighted Sangomar’s value contribution to Woodside’s portfolio. Additionally, the company’s Scarborough Energy Project is now 80% complete and remains on track for first LNG production in 2026. The project has attracted strong investor interest, with LNG Japan and JERA acquiring non-operating stakes for a combined $2.3 billion, underlining the long-term demand for premium LNG supply.
Strategic portfolio adjustments were a key theme in 2024, with Woodside entering into an asset swap agreement with Chevron to streamline its Australian interests and enhance commercial prospects. The company also made two significant acquisitions: Louisiana LNG, a fully permitted US Gulf Coast LNG project with a long-term production capacity of 27.6 Mtpa, and the Beaumont New Ammonia project. The latter aligns with Woodside’s decarbonization strategy, with the potential to abate up to 1.6 million tonnes of CO2-equivalent emissions per annum when its associated carbon capture and storage (CCS) facility is operational. Beaumont is 83% complete, with first ammonia production targeted for the second half of 2025.
Woodside continued to strengthen its commitment to sustainability, achieving a 14% reduction in net equity Scope 1 and 2 greenhouse gas emissions, keeping it on track to meet its 2025 and 2030 climate targets. The company’s participation in long-term LNG supply agreements with key Asian customers further reinforced its role in balancing energy security with decarbonization efforts. Three agreements were signed for LNG sales to Japan, Korea, and Taiwan, demonstrating sustained demand for natural gas in the region.
Woodside enters 2025 with a strong balance sheet, a resilient asset base, and a clear path toward value-accretive growth. The company remains well-positioned to capitalize on its world-class LNG and oil assets, with major projects like Scarborough and Trion expected to drive long-term shareholder value. With disciplined capital management, continued cost efficiency, and strategic investments in lower-carbon energy solutions, Woodside is poised to maintain its leadership in the global energy sector.
(Source: Company’s Report)
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