Woodside’s BHP merger drives further war profiteering

The Australasian Centre for Corporate Responsibility​ (ACCR)  is commenting on the second quarter results of Woodside Energy Group. For Q2 the company reported revenue of US$3.4 billion, a 44% increase compared with Q1 2022 and a 159% increase compared with Q2 2021. This is attributable to a doubling of realised energy prices over the last 12 months and an increase in production following the BHP merger, which was finalised 1 June 2022.

Commenting on the results, Alex Hillman, Lead Carbon Analyst at the Australasian Centre for Corporate Responsibility (ACCR) said:

“Woodside’s 160% increase in revenue over the last year was driven by the company’s enhanced commitment to fossil fuels through the BHP Petroleum merger, along with a doubling of realised energy prices thanks to war profiteering.

“Any tone of self-congratulation must be tempered by the reality that these results are the product of severe misfortune for many.

“This is not a testament to any particular talent of Woodside’s board or management.

“Rather, this is a missed opportunity for Woodside to accelerate its new energy plans.

“The current high prices are increasing the urgency for LNG importers to explore long term alternatives to gas. And yet Woodside is just doing what it does and shifting focus to projects like Browse.

“Demonstrating that any commitment to the Paris Agreement isn’t worth the paper it’s written on, the company is even using the current energy crisis as a reason to justify the extension of the North West Shelf for 48 years to 2070.

“It is absurd.

“Questions need to be asked about the capacity of a company like Woodside to transition.

“It is possible for investors to benefit from today's results whilst also pushing back against growth projects like Browse and Trion. These are not mutually exclusive concepts.

“With its new assets in the Bass Strait, Woodside is also now party to the chaos of the east coast energy market, where local manufacturers and householders are hugely exposed due to insufficient gas supply.

“As a direct beneficiary, we cannot see Woodside advocating for a gas reservation policy on the east coast anytime soon.”