Woodside Energy experienced an 8% decrease in production during the first quarter of 2026, reaching 45.2 million barrels of oil equivalent (MMboe). This decline was primarily attributed to severe tropical cyclones impacting offshore and LNG operations in Western Australia, alongside planned maintenance and seasonal factors. Specifically, assets like Wheatstone LNG saw temporary reductions in output due to an unplanned outage linked to cyclone activity.
Despite the production drop, Woodside has maintained its full-year production guidance, expecting 172–186 MMboe, indicating confidence in a recovery throughout the rest of the year. The company highlighted strong operational performance, with key assets including Sangomar, Pluto LNG, and the North West Shelf operating at or near 99% reliability. Furthermore, revenue for the quarter rose by 7% to $3.26 billion compared to the previous quarter, driven by improved pricing and steady volumes, supported by stronger oil and LNG market prices.
The disruptions caused by the cyclones, particularly affecting the Karratha Gas Plant and other major Australian LNG facilities, have raised concerns among LNG importers about supply reliability. While Woodside's Karratha plant, part of the North West Shelf gas project, was impacted, the company emphasized its limited exposure to geopolitical shipping risks, with no vessels transiting the Strait of Hormuz. Analyst Josh Runciman from the Institute for Energy Economics and Financial Analysis noted that even minor hits to output could ripple through global markets, particularly given the already tight fuel supplies due to global geopolitical events.
