Woodside Energy reduces stake in Texas Ammonia Project
- Woodside Energy announced plans to reduce its investment in the Beaumont New Ammonia project after lower-than-expected third-party feedstock availability and a safety incident constrained production.
- The company reported third-quarter revenue of $4.28 billion, which beat consensus expectations of $4.11 billion.
- Management stated that the capital reallocation aims to focus on core portfolio assets like the Browse liquefied natural gas project.
Woodside Energy (ASX:WDS) announced plans to begin a formal process to reduce its investment in the Beaumont New Ammonia Project in Texas after disappointing production volumes.
The project was originally acquired for $2.35 billion in 2024 as part of a green energy push under former leadership.
"We are focused on developing other parts of our portfolio," said Woodside CEO Liz Westcott.
Production at the Texas facility was constrained to 69% of capacity due to third-party feedstock availability and a 30-day shutdown following a safety incident.
The company lowered the top end of its annual production guidance to 174–181 million barrels of oil equivalent, down from its earlier forecast of 174–185 million barrels of oil equivalent.
Following the announcement, the Woodside Energy share price was down at $32.78.
Woodside Energy recently reported that third-quarter revenue rose to $4.28 billion from $3.36 billion in the year-earlier quarter.
The average realised price for the company's products increased by 40% year-on-year to $84 per barrel of oil equivalent during the same period.
