Woodside Drops $5 Billion Clean Energy Plan as Profit Rises 7%

Woodside Energy has abandoned a longer-term emissions target and plans to spend $5 billion on clean energy projects by 2030, shifting its investment strategy toward its core oil and gas operations after posting stronger first-half earnings.

The Australian energy producer said Tuesday it will conduct a strategic review of its Beaumont New Ammonia project in Texas. CEO Liz Westcott also outlined plans to reduce costs by $350 million from 2028 as Woodside tightens its investment priorities.

Woodside remains on track to achieve its 2030 target for reducing direct emissions. However, the company will scale back its Scope 3 emissions target, which covers emissions generated when customers use its products.

Westcott said the previous targets were established under different market conditions, adding that Woodside has struggled to find commercially viable clean energy investments. The company scrapped its H2OK green hydrogen project in Oklahoma in 2025 after failing to secure sufficient customer demand.

Woodside reported underlying net profit after tax of $1.33 billion for the six months ended June 30, up 7% and slightly above the Visible Alpha consensus forecast of $1.32 billion.

Its average realized price increased to $74 per barrel of oil equivalent from $61.70 a year earlier. Woodside expects further trading gains after redirecting cargoes toward higher-priced markets during the Middle East crisis.

The company raised its interim dividend to 57 cents per share from 53 cents last year. It also maintained its 2026 production guidance of 174 million to 185 million barrels of oil equivalent and reaffirmed capital expenditure expectations of $4 billion to $4.5 billion.

Woodside acquired the Beaumont ammonia project for $2.35 billion after facing shareholder pressure over its climate strategy. The company is now joining other major energy producers in reducing renewable investment as energy security and traditional oil and gas operations regain prominence.

Woodside shares fell about 1% to A$33.45 by 0308 GMT, underperforming the S&P/ASX 200, which gained 3.57%.