• Woodside beats Q4 revenue view despite a 13% drop
• Full‑year output hit a record 198.8 million boe
• Scarborough reached 94% completion
• First ammonia flowed at Beaumont in December

Jan 28 (Reuters) - Australia's Woodside Energy (WDS.AX) , opens new tab on Wednesday flagged a lower production outlook for 2026, tempering a stronger-than-expected fourth-quarter revenue that was underpinned by resilient output despite weaker oil and gas prices.

Shares in the oil and gas major rose as much as 2.2% at A$24.86 by 1122 GMT, in tandem with a 0.3% rise in the broader benchmark (.AXJO) , opens new tab.

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The country's top gas producer beat market expectations for December-quarter revenue as stronger production helped cushion the impact of softer realised prices.

Oil prices closed 2025 nearly 20% lower - their steepest annual decline since the pandemic-hit year of 2020 - following a volatile final quarter marked by supply gluts and heightened geopolitical uncertainty linked to the Russia-Ukraine war and ongoing Middle East conflicts.

Weaker seasonal demand on Australia's east coast also weighed on gas sales.

Woodside achieved an average realised price of $57 per barrel of oil equivalent (boe) for the quarter, down from $63 per boe a year earlier.

For the full year, however, output reached a record 198.8 million boe, exceeding guidance on the back of strong operating performance across key assets, including Sangomar, Shenzi and Pluto LNG.

Looking ahead, Woodside forecast 2026 production of 172–186 million boe, below the record levels achieved in 2025.

The softer outlook reflects planned maintenance and a major turnaround at Pluto LNG in the second quarter, as well as the timing of new volumes from the Scarborough project, the company said.

Scarborough, which is 94% complete, will supply gas to Pluto LNG, but production from the project is not expected to begin until the fourth quarter of 2026, creating a temporary gap in output during the year while Pluto undergoes maintenance, Woodside added.

The company also confirmed first ammonia production at its Beaumont New Ammonia project in December, with commissioning continuing into early 2026.

Smaller rival Santos (STO.AX) , opens new tab last week reported quarterly output below estimates, as weaker realised prices weighed on revenue year-on-year.

https://www.reuters.com/business/energy/australias-woodside-posts-13-fall-fourth-quarter-revenue-2026-01-27/