BAKU, Azerbaijan, November 5. Woodside Energy
is targeting a portfolio return on average capital employed (ROACE)
of 12-15% by the mid-2030s, according to the company's Capital
Markets Day 2026 presentation.
According to the company, the base business together with the
delivery of Scarborough, Trion, and Louisiana LNG provides a ROACE
of about 10 percent at a Brent price of $70 per barrel. Structural
cost cuts are expected to add about 0.5 percentage points, and
marketing and trading about 1 percentage point. The new capital and
distribution framework is expected to add another 1-3 percentage
points.
"We are targeting portfolio return on average capital employed
of 12-15% by the mid-2030s. Delivery of our committed projects, the
structural cost program, active portfolio management and increased
value capture through marketing and trading will support this
improvement," CEO Liz Westcott said.
Woodside Energy, headquartered in Perth, is Australia's largest
independent oil and gas company and is listed on the Australian
Securities Exchange and the New York Stock Exchange. Return on
average capital employed (ROACE) is calculated as profit before tax
and net finance costs divided by average capital employed. Woodside
said the target is based on a long-term Brent price of $70 per
barrel, JKM of $10 per MMBtu and TTF of $9 per MMBtu in 2026 real
terms. Woodside's three major projects under construction are
Scarborough in Western Australia (final investment decision in
2021), Trion in Mexico (FID in 2023) and Louisiana LNG in the US
(FID in 2025). Woodside held its Capital Markets Day 2026 in Sydney
on November 5 and will hold a second event in New York on November
12. At last year's Capital Markets Day, in November 2025, the
company set out its growth plans to 2032.
