Woodside annual meeting: Liz Westcott says Middle East war shows need for reliable energy alongside carbon

New Woodside boss Liz Westcott says war in the Middle East is “a dramatic reminder” governments need to prioritise reliable energy alongside cutting emissions. Ms Westcott was appointed last month to succeed Meg O’Neill as boss of the $60 billion business after Ms O’Neill took the helm of supermajor BP. The company would “continue to monitor” disruption to energy markets caused by the conflict between the US, Israel and Iran, she told the company’s annual meeting in Perth on Thursday. Iran responded by closing the Strait of Hormuz which transits about a fifth of the world’s seaborne gas trade. Energy prices have been pushed up across the globe, including in Australia. “(The war) is a dramatic reminder that reliable and affordable energy remains key to global economic growth, and the quality of life we enjoy in countries like Australia,” Ms Westcott said. “As nations around the world prioritise energy security and affordability alongside decarbonisation, Woodside is confident in ongoing demand for LNG as a reliable and flexible energy source.” Woodside has pledged about $US5 billion into greener energy technology by 2030 but remains under pressure from shareholders to speed up progress. That came to a head at an AGM two years ago when the company’s climate plan was voted down. Woodside shares lifted 2 per cent to $31.38 in morning trade. That’s up about 25 per cent since the start of February. About 34 per cent of shareholders voted against Ms Westcott’s pay deal as incoming boss, after major advisory CGI Glass Lewis recommended investors oppose the arrangement. Ms Westcott could earn as much as $14.8 million for the 2026 financial year — with incentive payouts almost six times her salary. That’s higher than her predecessor Ms O’Neill. Half will be long-term performance-tested equity rights. Market Forces senior analyst Brett Morgan labelled it a “deeply flawed executive pay structure”. “Woodside’s own modelling concludes the company could be cashflow negative as early as 2031 if global LNG demand declines in line with (the Paris Agreement),” he said. Australasian Centre for Corporate Responsibility’s Alex Hillman — who has previously written that Woodside’s total shareholder return significantly lagged the market long term — said “many investors share our concerns”. “We’ve been highlighting Woodside’s poor performance for years so it seems like an odd decision for the board to increase the CEO’s target pay,” he said. Woodside chair Richard Goyder said the pay deal was designed to lift return on capital and drive shareholder returns. Responding to the impact of the war on the oil price potentially making Ms Westcott’s targets easier, he said: “We don’t intend to change the targets . . . but we will keep an eye on this.” The annual meeting was again marred by protests including one man who rushed onto the stage and was escorted out by security. It’s understood about 30 move on notices were issued and one arrest. Greens Member of the Legislative Council Sophie McNeill was issued a move on notice and said on social media the company “must be called out at every turn”. Ms Westcott said the conduct was “very disappointing”. “This particular protestor that chose to try and storm the stage actually created a security risk . . . and it can cause concern,” she said. “It’s a serious event and (that) should not be allowed.” The industry more broadly is under pressure over how much is paid for the gas it extracts, processes and exports with a Senate inquiry this week scrutinising the issue. Woodside paid $US349m through the Petroleum Resources Rent Tax in 2025 on Australian revenue of $US7.5b — effectively a rate of about 4.7 per cent. Asked whether this was enough, Ms Westcott said total taxes paid in Australia last year were nearly $US2b. “I can certainly understand Australians’ desire to make sure they get a fair return for these finite resources. And also know Australians are hurting as prices continue to rise,” she said. “I’m glad they’re asking so many parties to participate.”