Woodside Energy shares rise as FY profit tops estimates
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More news: Woodside Energy shares gained after the oil and gas giant more than doubled its full-year net profit on the back of higher output during the period.
Woodside shares were up 2.7% to $24.02 at 2:20pm AEDT, having fallen around 20% over the last 12 months.
What they said: Saxo Asia Pacific senior sales trader Junvum Kim said Woodside's result "marks a strong production year, despite softer prices, with its 80% dividend policy potentially challenged by upcoming investments."
"The strategic shift to the US market, through projects like Tellurian's Louisiana LNG and a Texas ammonia venture, signals a commitment to growth and cleaner energy.
"As projects progress and attract top partners, success will rely on cost management and executing ambitious plans."
Woodside more than doubles FY profit, beats estimates
The news: Oil and gas producer Woodside Energy more than doubled its full-year net profit, with improved production performance at its Sangomar oil field offsetting lower realised oil and gas prices during the period.
The numbers: The company posted a 115% rise in full-year profit to USD3.57 billion ($5.62 billion), compared to the USD3.25 billion analysts polled by Visible Alpha expected.
Annual sales of 203.5 million barrels of oil equivalent (MMboe) edged up 1% year on year, but the average realised price lowered 7% to USD63.6 a barrel. This saw operating revenue drop 6% to USD13.2 billion.
The board declared a final dividend of 53 US cents per share, taking the full-year dividend to 122 US cents, 13% lower compared to a year ago.
The context: Woodside said the result was boosted by the ramp up of its Sangomar field, which contributed 12.9 MMboe sales and generated around $950 million in revenue since its startup in June 2024.
Last week, Woodside pre-announced increased restoration costs for the year and "other expenses" between USD1.7 billion and USD1.9 billion. Both disclosures were significantly above consensus estimates, which alongside news of lower reserves, led to several downgrades from analysts.
The sources: ASX release, Saxo research
