Woodside Energy shares lower as Q1 output misses estimates
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The news: Oil giant Woodside Energy was the worst performing ASX 200 stock at 1:20pm AEST, after reporting a drop in first-quarter production and revenue on Wednesday.
The numbers: Woodside shares fell 2% to $20.02, having closed 3.6% higher in the previous session, though buoyed by an advance in global crude prices.
UBS cut its earnings per share forecasts by 8% to 9% between fiscal 2025 to 2027.
The context: UBS analysts said the March quarter result was "broadly in-line", with production slightly below market expectations due to unplanned outages at its Pluto liquified natural gas processing plant, offset by sales revenue beating expectations on stronger realised oil pricing.
The analysts said they see some upside to Woodside's current share price on valuation, but remain 'neutral' given the company's heavy capital expenditure profile weighs on free cash flow.
The source: UBS research
