Home Economy News Woodside Energy full-year profit drops 37% as weak prices offset higher sales

Woodside Energy full-year profit drops 37% as weak prices offset higher sales


Woodside always ‘running ruler’ over deals after profit beats forecast By Reuters

Breaking News



Published Feb 26, 2024 05:24PM ET
Updated Feb 26, 2024 10:10PM ET

© Reuters. FILE PHOTO: Gastech 2023 participants gather at Australia’s Woodside Energy’s booth in Singapore September 7, 2023. REUTERS/Florence Tan/File Photo

By Lewis Jackson and Sameer Manekar

(Reuters) -Australia’s top oil and gas explorer Woodside (OTC:WOPEY) Energy posted a 37% drop in annual underlying profit on Tuesday, as subdued oil and gas prices offset higher sales and production.

Less than three weeks since Woodside ended merger talks with smaller local player Santos amid major differences on price, CEO Meg O’Neill said the company continued to assess potential deal targets.

Investors have been watching closely for signs of future deal-making and O’Neill fielded repeated questions about acquisition plans from analysts on a full-year results call on Tuesday.

“We’re always looking for ways to add value to our shareholders,” she said in a later interview with Reuters. “We’re pretty regularly running the ruler over ideas but we’re very pleased with the portfolio we have today.”

“Running the ruler over ideas and bringing a deal to fruition are two quite different things,” she said.

O’Neill singled out the North American offshore sector as a particular area of interest as well as liquefied natural gas (LNG) projects.

Asked about a recent Bloomberg interview in Saudi Arabia which raised the possibility of deals in the Middle East, O’Neill said her main reason for travelling to the country was a conference.

Woodside reported underlying net profit after tax (NPAT) of $3.32 billion for 2023, down 37% from $5.23 billion in 2022. However, that beat an LSEG estimate of $3.03 billion.

Oil and natural gas prices softened in 2023, as slowing global growth and China’s slowdown weighed on demand, but Woodside’s profits beat market forecasts thanks to lower costs.

Shares of the company rose 0.9% to A$30.28 at 12:45 p.m.(0145 GMT), while the benchmark index was down 0.15%.

Last week, the company announced the sale of a 15.1% non-operating stake in its Scarborough gas project to Japan’s JERA for about $1.4 billion – its second stake sale to a Japanese LNG buyer in six months.

O’Neill said she was happy with Woodside’s current 74.9% equity stake in the project and there were no plans for further sales.

Woodside maintained its target to export a first LNG cargo in 2026 for the project off the Western Australian coast.

Woodside received $68.6 per barrel of oil equivalent (boe), compared with $98.4 per boe a year earlier, while annual sales volume rose 19% to 201.5 million barrels of oil equivalent (mmboe).

Woodside maintained its fiscal 2024 production guidance of between 185 and 195 mmboe and reaffirmed its capital expenditure forecast of between $5.0 billion and $5.5 billion.

Woodside always ‘running ruler’ over deals after profit beats forecast

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News