REPORTING SEASON: Woodside Petroleum Ltd (WPL)
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Figure 1: Woodside Petroleum Ltd 12 month chart
Woodside (WPL) half yearly results solid, cashed up – now what’s next?
· Energy producer and provider, Woodside Petroleum (WPL) reported a solid first half result today. WPL’s underlying Net Profit after Tax (NPAT) increased by 33% (Y/Y) helped by record first half production and productivity improvements. WPL’s reported NPAT included the US$31Million sale of its USA assets. After asset sales and changes to Woodside’s investment pipeline lifted the group’s free cash flow by 158% to $1,825Million, gearing fell 3.9% from 13.0%, in line with expectations, and net debt decreased by 72% to $623Million.
· Woodside is looking at increasing its overseas exposure by looking with new J/V’s in the US and Liquefied Natural Gas (LNG) projects in Canada to help lift the company’s pipeline and overall reserves after the decision to delay its Browse and Sunrise LNG projects in Australia. WPL said the Browse project remains on track for targeted Final Investment Decision (FID) in 2H15 with first LNG expected five- six years after FID.
· Today WPL reaffirmed its production target of 89-94Million metric barrels of oil equivalent (MMboe) in FY14, and cut its exploration and CAPEX guidance slightly to US$1.1Billion from US$1.2Billion.
· An Interim dividend of US$1.11 was in line with the company’s stated 80% payout ratio and will be paid out on 29 August 2014.