Insights 30th August 2022
Woodside jumps on H1 results incl. massive dividend | Woodside Energy (ASX:WDS)
Australian oil and gas giant Woodside Energy (ASX:WDS) released its half year results today, including a massive dividend more than three times that of the same time a year ago.
For the first half of FY22, Woodside reported operating revenue up 132% to US$5.81 billion, EBITDA up 165%, underlying NPAT of US$1.82 billion a premium of 414% on the first half of FY21, and an interim dividend of US$1.09 per share, up 263% from the same time last year. Woodside CEO Meg O’Neill said the results reflect strong operational performance and higher realised prices, which more than doubled year-on-year to US$96.4 per barrel of oil equivalent across the expanded portfolio.
This report is also the company’s first since completing the merger with BHP’s petroleum business and highlights increased financial and operational strength delivered by Woodside’s larger, geographically diverse portfolio of high-quality operating assets.
On the operational front, production for the half was 19% higher at 54.9 million barrels of oil equivalent, including 9.7 million barrels of oil equivalent from the former BHP Petroleum assets in June 2022.
On the business front, Woodside completed its merger with BHP’s Petroleum business, and commenced trading on the London Stock Exchange and New York Stock Exchange.
In terms of full-year guidance, Woodside provided outlook expecting total production between 145 – 153 million barrels of oil equivalent, Capex between US$4.3 billion to US$4.8 billion and exploration expenditure guidance is set between US$400 - US$500 million.
The market was expecting an update on BHP growth assets including Trion in the Gulf of Mexico which was close to ready for FID at the merger date. Woodside did provide an update that may not impress investors though, sharing that due to supply chain and market volatility the project team is re-assessing the best contracting strategies to increase predictability of cost and schedule ahead of a potential FID in 2023.
Brokers are yet to update their ratings post the release of the results however Woodside’s NPAT falls short of Citi’s expected NPAT for the energy giant of US$2.06 billion but the interim dividend well exceeds the amount Citi expected.
Investors have responded favourably to the results, with shares in Woodside trading almost 2% higher in the opening hour of trade.