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Highlights

  • In FY23, Woodside's production surged by 18.7%, hitting the upper range of its guidance.
  • Woodside’s merger with BHP Petroleum strengthened its financial position, with USD 7.8 bn in total liquidity by year-end (FY23).
  • The company paid a dividend of USD 1.40 per share for FY23, marking an annualized dividend yield of approximately 10.45%.
  • The company is gearing up for increased oil production in FY24, along with advancing important projects like Senegal's maiden offshore oil project and the Scarborough Energy Project.

Woodside Energy Group Ltd (LSE: WDS) is an Australian company listed on the London Stock Exchange. It specializes in petroleum exploration and production. With more than 65 years of experience, the company has led the development of the LNG industry in Australia. The company’s portfolio of projects is underpinned by project delivery capability that is focused on low-cost, safety, and lower-carbon solutions.

The global energy company reported 18.7% higher production in FY23 versus FY22. The production volume (187.2 MMboe) was at the top end of its guidance range of 183 MMboe – 188 MMboe. Further, the company bolstered its financial position through a merger with BHP Petroleum. By the year-end the company’s total available liquidity reached USD 7.8 bn, confirming the maintenance of investment-grade credit ratings.

Dividend: The company’s total dividend for FY23 was USD 1.40 per share. Annualized dividend yield was approximately 10.45% as per the closing price of the stock on 16 April 2024.

Recent business update

On 26 March 2024, the company announced completing the sale of a 10% non-operating participating stake in the Scarborough Join Venture to LJ Scarborough Pty Ltd for USD 910 mn.

Company outlook

In FY24, the company expects the oil production to increase and be in the range from 185 MMboe to 195 MMboe. It is constructing Senegal's maiden offshore oil project, aiming to achieve initial oil production by mid-2024. It is also advancing the Scarborough Energy Project, targeting to deliver the first LNG cargo by 2026. Further, the group is building a Pacific LNG position through offtake from Mexico Pacific LNG4. It further increases the potential to deliver hydrogen through FID on the H2 Refueller Project.

Top 10 Shareholders:

The top ten shareholders of WDS have around 21.30% shareholding in the company. The Vanguard Group, Inc. holds the highest number of shares (~5.04%), followed by State Street Global Advisors Australia Ltd. (~4.01%), as represented in the chart below:

Stock performance

The stock price of WDS fell by ~5.04% in the last three months and over the last six months, it has slipped by ~18.28%. The stock’s 52-week low and 52-week high stand at GBX 1,491 & 2,028, respectively. Currently, the stock is trading below the average of its 52-week high-low.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 16 April 2024. The reference data in this report has been partly sourced from EODHD/Others.