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Woodside’s emissions on the rise with record production

Woodside (WDS:ASX)

Our view

Today’s 4Q update highlights WDS’ heavy reliance on third-party CCS at the Beaumont ammonia facility, which represents 50% of its FY25 US$5bn New Energy capex and up to 75% in phase 2.

Delays in renewable hydrogen projects, pushed back each quarter, further restrict the levers and capex available to reduce scope 3 emissions. With scope 1 and 2 absolute emissions rising in FY24, offsets are set to play an even greater role in achieving net emissions reductions. Meanwhile, oil and gas greenfield capex for FY25 is almost on par with combined New Energy to FY30, underscoring Woodside’s reliance on LNG major projects, exemplified by its Louisiana LNG acquisition.