Lower oil and gas prices account for a downturn in underlying profit reported by Woodside Energy Group Ltd (ASX:WDS) in its full-year financial report for 2024.

Woodside’s underlying profit was $2.88 billion in 2024 – a drop of 13% compared to the previous year, even though net profit after tax (NPAT) had been 115% higher at $3.57B.

Production numbers were strong, the company said, with a record 193.9M barrels of oil equivalent (MMboe) – 530 Mboe per day – produced for the full year 2024. A significant factor in this was strong early production at Sangomar near Senegal, as well as reliable performances at operated LNG assets.

Directors decided on a final dividend of 53 cents per share, ushering in a full-year dividend of 122 U.S. cents per share (fully franked), keeping to a payout ratio of 80%.

CEO Meg O’Neill said the company was on the right track to generate significant wealth.

“Our proven track record of operational excellence, disciplined investment decisions and world-class project execution is delivering near-term rewards for our shareholders while laying the foundations for a new chapter of value creation,” she said.

“In 2024, the record annual production was at the top end of the full-year guidance range, underpinned by consistently strong 98% reliability at our operated LNG facilities.

“Unit production cost of $8.1/boe was down 2% from 2023, underlining operational discipline and the resilience of the base business in a period of inflationary pressures.

“Woodside’s operating cash flow was strong at $5.8 billion and the cash margin was 82%, up from 80% in 2023.”

Woodside has been trading at $23.38.

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