Energy giant Woodside triples dividend as gas prices soar

AUSTRALIAN oil and gas giant Woodside Energy has tripled its payout to shareholders after profits rose sixfold on the back of soaring gas prices.

Meg O’neill, the chief executive, said the company was in “uncharted waters” as gas markets are rocked by Russia’s invasion of Ukraine.

Woodside Energy is one of the world’s largest producers of liquefied natural gas which is exported around the world and is in high demand as countries scramble to replace Russian supplies.

The Australia-listed company has also just bought mining giant BHP’S oil and gas business, turning Woodside into one of the world’s biggest oil and gas producers. Gas makes up 70pc of its portfolio.

Profits climbed from $342m (£293m) during the first half of 2021 to $1.7bn during the first half of 2022.

The company is paying out an interim dividend of $1.09 per share, or $2.1bn, more than triple last year’s interim dividend of 30 cents per share.

Jamie Hannah, deputy head of investments at fund manager Vaneck, said the dividend was “definitely bigger than expected”.

“Most investors will be satisfied that they’ve delivered on their dividend promise,” he said. Shares jumped 3.8pc as the dividend was declared.

Oil and gas producers around the world are making huge profits on the back of the surge in prices triggered by cuts to Russian supplies.

Uk-listed Shell and BP have posted second quarterly profits of £9.7bn and £7bn respectively.

While investors are being rewarded, the surge in energy bills for households and businesses has led to windfall taxes in the UK and elsewhere on oil and gas producers, and calls for further intervention.

Ms O’neill said Woodside was “making a significant economic contribution” through investments and tax payments.

She said the company had paid roughly A$700m (£413m) in Australian taxes and royalties so far this year.