Photo: kees torn / CC BY-SA 2.0
Woodside Energy set a new shareholder payout policy of 20%-40% of adjusted operating cash flow and outlined a target of $400 million in annual structural cost reductions from 2028.
The framework prioritizes 20% of adjusted operating cash flow as a base dividend, with up to another 20% available for additional dividends or share buybacks, the company said in its Capital Markets Day announcement.
For shareholders, the policy links distributions to a cash-flow measure rather than promising a fixed dollar payout. The extra portion is available for distributions, not guaranteed.
Growth projects compete with extra payouts
Woodside said its new capital framework requires growth investment to compete for capital against additional shareholder distributions. The company is targeting portfolio return on average capital employed of 12%-15% by the mid-2030s.
CEO and Managing Director Liz Westcott said Woodside’s focus includes operational efficiency, project execution and managing the portfolio to concentrate spending where it earns the highest returns.
The cost-reduction figure is a target beginning in 2028, not savings already delivered. The return target and project schedules are also forward-looking and subject to execution and market risks.
LNG projects underpin the plan
Woodside said Scarborough was 99% complete and remained on track for its first liquefied natural gas cargo in 2026. It targets first oil from Trion in 2028 and the first LNG cargo from Louisiana LNG in 2029.
The company expects those projects and its existing business to support sales-volume growth of more than 30% to about 280 million barrels of oil equivalent in 2032. It also forecasts more than $40 billion of adjusted operating cash flow over 2027-2032.
Those figures reflect Woodside’s assumptions, not contracted returns to investors. The company cautioned that its forward-looking statements are not guarantees and actual performance may differ materially.
The details were released in a company announcement distributed through Business Wire ahead of its Sydney Capital Markets Day.
JBizNews Desk | Sydney
© JBizNews.com. All rights reserved. Unauthorized reproduction or redistribution is strictly prohibited.
.jpg){kind=link}