Woodside Energy Group Ltd (ASX: WDS) shares have experienced a significant downturn, driven by weakened financial results, a revised credit outlook, and strategic investment decisions. The recent market activity reflects concerns regarding the company’s profitability and future financial flexibility.
The stock closed at A$23.06 today, culminating in a 14.24% decline over the past month. This downward pressure reflects market apprehension following recent financial disclosures and strategic announcements.
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
- eToro - Invest in ASX and international shares - Read our review
Woodside reported a 24% drop in underlying net profit after tax (NPAT) to US$1.25 billion for the first half of 2025, compared to the same period last year. This decline was primarily attributed to lower oil prices and increased depreciation costs associated with the Sangomar project in Senegal. Revenue saw a 10% increase, reaching US$6.59 billion, but the interim dividend was cut to 53 US cents per share from 69 cents the previous year.
Adding to the pressure, S&P Global Ratings downgraded Woodside’s credit outlook from “stable” to “negative” in May 2025. This decision followed Woodside’s commitment to a US$17.5 billion liquefied natural gas (LNG) project in Louisiana. While the ‘BBB+’ long-term issuer and issue credit ratings were maintained, the outlook change signaled concerns about increased market exposure and potential financial strain.
In July 2024, Woodside acquired Tellurian Inc. and its Driftwood LNG development for approximately US$900 million. The acquisition aimed to bolster Woodside’s global LNG presence, but the market response was muted, with shares experiencing a slight dip after the announcement.
Earlier in the year, Woodside reported a 13% decline in annual profit, the lowest in three years, citing weaker oil and gas prices. Despite these challenges, the company reaffirmed its production forecast for 2025, anticipating strong LNG demand.
Conversely, in June 2025, Woodside raised its 2025 production guidance to 188–195 million barrels of oil equivalent, up from 186–196 MMboe. The company also reduced its full-year unit production cost guidance, indicating improved operational efficiency.
The combination of reduced profitability, a cautious credit outlook, and strategic investments has created a complex narrative for Woodside. Markets are carefully weighing the company’s growth prospects against its financial commitments and the volatile energy market.
Don’t Buy Just Yet
You will want to see this before you make any decisions.
Before you decide which shares to add to your portfolio you might want to take a look at this special report we recently published.
Our experts picked out The 5 best ASX shares to buy in 2025.
We’re giving away this valuable research for FREE.
Click below to secure your copy
