Dale Koenders

Dale Koenders followed up on Beaumont's earnings, questioning if strong domestic pricing could lead to earnings contribution sooner than the previously stated clean ammonia stage.

Answer

CFO Graham Tiver stated that earnings contribution depends on the start-up and ramp-up phases. He expressed optimism for a favorable cash cost position given the healthy market, but acknowledged significant work remains before taking operatorship and achieving full ramp-up.

Dale Koenders asked about the contracting status for the Beaumont New Ammonia Project, specifically regarding gas supply and ammonia offtake, price exposure, and the expected trajectory of earnings growth over the next 12 to 18 months. He followed up by asking if the current strong domestic pricing for ammonia could lead to earlier earnings contributions than previously expected, given the project was initially projected to be earnings accretive at the clean ammonia stage.

Answer

Meg O'Neill (CEO and Managing Director, Woodside Energy Group) confirmed that Beaumont achieved first ammonia in December 2025 and is ramping up, with OCI operating until performance conditions are met in H1 2026. Lower carbon ammonia production is targeted for H2 2026, relying on third-party nitrogen, hydrogen, and ExxonMobil's CCS facility. She noted strong customer interest for both conventional and lower carbon ammonia, with contracts being layered. Graham Tiver (CFO, Woodside Energy Group) highlighted that domestic US ammonia prices are currently over $600/ton, indicating a healthy market. While acknowledging the potential for earlier earnings contribution due to strong pricing, he cautioned that actual earnings depend on the startup, ramp-up, and Woodside taking over operatorship, with the first year involving significant work.

Dale Koenders of Barrenjoey pointed out a $600 million difference between the year-to-date CapEx reported in the Q2 update and the figure on the cash flow statement, asking for a reconciliation. He also asked about the outlook for cash tax payments relative to tax expense.

Answer

Executive VP & CFO Graham Tiver clarified that the primary difference between the two CapEx figures is the inclusion of capitalized borrowing costs in the cash flow statement view. On taxes, he noted that many factors influence cash tax payments, making it difficult to give precise forward guidance, but the company aims to provide as much guidance as possible.