S&P Global Ratings revised Woodside Energy’s credit outlook from “stable” to “negative” after the Australian energy company greenlit a massive $17.5 billion LNG project in Louisiana without fully offloading its offtake risk.
🔹 What Happened:
- Project: $17.5B LNG investment in Louisiana
- Outlook: Cut to “negative” due to increased financial exposure
- Rating: Affirmed at ‘BBB+’
🔹 Key Risks: S&P said Woodside is now more exposed to market risk because it retains a 60% economic interest, even after selling a 40% stake to U.S. investor Stonepeak.
CEO Meg O’Neill said further sell-downs are being considered, but the timing remains unclear.
🔹 Financial Pressure: S&P forecasts Woodside’s funds from operations to debt ratio will hover around 50%, noting:
“The company has very limited capacity to absorb weaker oil prices or project cost overruns.”