Woodside scraps long-term emissions and clean energy targets despite windfall oil profits caused by Iran war

Australia’s biggest oil and gas company recorded a 27% increase in sales profit to $1.67bn in the six-month reporting period

Woodside Energy has scrapped its long-term emissions and clean energy targets, even after enjoying a period of windfall oil profits caused by the Iran conflict.

Australia’s biggest oil and gas company recorded a 27% increase in sales profit to $1.67bn ($A2.33bn) in the six-month reporting period, according to financials lodged on Tuesday, after the price of crude surged amid disruptions to global supplies.

It expects more trading gains by redirecting barrels to markets paying premium prices for barrels of oil.

At the same time, the Perth-headquartered company said it would drop its commitment to invest $US5bn ($A7bn) in new energy products, such as hydrogen, by 2030.

It has placed its new ammonia business in the US under strategic review; an asset previously described as one of Woodside’s highest potential options for decarbonising power sources.

Under the new chief executive, Liz Westcott, Woodside is doubling down on fossil fuels while shifting the company further away from clean energy and decarbonisation targets.

Westcott told analysts on Tuesday 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 said that its new energy business would be guided by “customer demand and commercial markets”.

Woodside is one of a growing list of large oil companies amassing profits because of the Iran conflict at the same time as emissions-fuelled climate change affects communities around the world.

A recent run of deadly heatwaves in the northern hemisphere, made more likely and more severe by burning fossil fuels, has reignited calls for those same fossil fuel companies to shoulder the growing environmental costs of rising temperatures.

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.