Woodside scraps emissions and clean energy targets after profit surge linked to Iran conflict

Australia's biggest oil and gas company has scrapped its long-term emissions and clean energy targets after reporting a sharp rise in profit linked to higher crude prices during the Iran conflict. Woodside Energy said sales profit rose 27% to $1.67bn in the six-month reporting period, according to financial results lodged on Tuesday. The company also said it expects further trading gains by redirecting barrels to markets paying premium prices.

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The Perth-headquartered group said it would drop a commitment to invest $US5bn in new energy products, including hydrogen, by 2030. It has also placed its ammonia business in the United States under strategic review. That asset had previously been described by the company as one of its highest-potential options for decarbonising power sources.

Under chief executive Liz Westcott, Woodside said it would "retire" its scope 3 investment and abatement targets, which relate to emissions produced by customers. Westcott said the targets were established in a different market context. She also said markets for lower-carbon opportunities such as hydrogen, ammonia and carbon capture and storage had developed more slowly than expected.

The decision marks a clear shift in strategy for a major Australian energy producer at a time when oil and gas companies are benefiting from disrupted global supplies. Woodside said its new energy business would now be guided by customer demand and commercial markets. The company is therefore moving further away from earlier decarbonisation commitments while continuing to prioritise fossil fuel production.

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The announcement comes as climate pressure on large producers remains high, with activists arguing that companies making windfall profits from conflict-driven price rises should also bear more responsibility for emissions. Woodside is one of a growing number of oil companies to report gains during the conflict, while the wider debate over the pace of the energy transition continues. The company's revised approach also raises questions about the future of its hydrogen and ammonia plans, both of which had been presented as part of its lower-carbon strategy.

What remains unclear is how much of Woodside's new energy portfolio will proceed under the revised framework and whether the strategic review will lead to further changes. The company has not set out a detailed timetable for any replacement targets. Investors, climate campaigners and energy markets will be watching for further guidance on how the group balances profit from oil and gas with its longer-term emissions position.

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