Woodside Energy (ASX: WDS) has abandoned its target to invest US$5 billion in new energy products and lower-carbon services by 2030, marking a significant strategic shift as the oil and gas producer places greater emphasis on returns from its core business.

The Perth-based company also said it will review its Beaumont New Ammonia project in Texas as newly appointed chief executive Liz Westcott moves to simplify the business and sharpen capital allocation.

The strategic reset came alongside a stronger first half, with Woodside reporting underlying net profit after tax of US$1.33 billion for the six months to June 30, up 7% from US$1.25 billion a year earlier. Statutory net profit rose 27% to US$1.67 billion, while revenue increased 13% to US$7.45 billion.

Woodside had previously targeted US$5 billion of investment in new energy products and lower-carbon services by 2030. It will now undertake a strategic review of Beaumont New Ammonia, which it acquired in 2024.

The Texas project has a planned ammonia production capacity of 1.1 million tonnes per annum. Woodside has previously targeted lower-carbon ammonia production from the second half of 2026, subject to the availability of carbon-abated hydrogen and the operation of ExxonMobil’s carbon capture and storage facilities.

The review is part of a broader effort by Westcott to focus the portfolio on projects capable of generating stronger returns. Woodside also plans to reduce its cost base by US$350 million a year from 2028 through structural changes to the business.

Woodside’s first-half result was supported by higher realised prices, with the company recording an average realised price of US$74 per barrel of oil equivalent, compared with US$61.70 a year earlier.

Woodside said it expects further trading benefits after redirecting cargoes towards markets offering stronger prices during the Middle East conflict.

The company maintained its 2026 production guidance at 174 million to 185 million barrels of oil equivalent and kept its capital expenditure forecast at US$4 billion to US$4.5 billion.

Despite the strategic pullback from new energy, Woodside continues to invest in its major oil and gas developments. That makes the review of Beaumont New Ammonia and the abandonment of the US$5 billion target notable as the company prioritises near-term returns and a simpler portfolio while still funding projects intended to support future LNG and oil output. The company said Scarborough remains on schedule to deliver its first LNG cargo in the December quarter, while Trion in Mexico is targeting first oil in 2028. Louisiana LNG remains targeted for first production in 2029.