Despite reaping windfall profits from rising oil prices due to the Iran conflict, Woodside Energy has scrapped its long-term emissions and clean energy targets. This was reported by infohub.kz.
Australia's largest oil and gas company reported a 27% increase in sales profit to $1.67bn (A$2.33bn) for the six-month reporting period, following a surge in crude prices amid disruptions to global supplies. The company expects further trading gains by redirecting barrels to markets paying premium prices.
At the same time, the Perth-headquartered company said it would drop its commitment to invest US$5bn (A$7bn) in new energy products, such as hydrogen, by 2030. Its ammonia business in the US has been placed under strategic review; this asset was previously described as one of Woodside's highest potential options for decarbonizing power sources.
Under new CEO Liz Westcott, Woodside is doubling down on fossil fuels, moving further away from clean energy and decarbonization targets. Westcott told analysts on Tuesday that the company would "retire" its so-called scope 3 investment and abatement targets, which refer to emissions produced by its customers, because the targets "were established in a different market context".
"The reality is that markets for emerging lower carbon opportunities, including hydrogen, ammonia, and carbon capture and storage, have developed more slowly than anticipated," Westcott said. The company stated that its new energy business would be guided by "customer demand and commercial markets".
Woodside is among a growing list of major oil companies amassing profits from the Iran conflict, while emissions-driven climate change affects communities worldwide. Recent deadly heatwaves in the northern hemisphere, made more likely and severe by burning fossil fuels, have intensified calls for these companies to compensate for the environmental damage they cause.
Brett Morgan, investor campaigns manager at climate activists Market Forces, said big polluters must be held accountable for environmental damage. "Woodside has ditched its already feeble scope 3 emissions reduction and new energy investment targets, despite years of investor pressure demanding stronger climate action," Morgan said. He added that major investors, including Australian super funds, must demand an end to the company's plan to expand fossil fuel operations.
Woodside declared an interim dividend of US57c per share, up from US53c last year.