REPORTING SEASON: Woodside (WPL)

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Figure 1: Woodside 12 month chart

 

Woodside Petroleum (WPL) – A tough start as expected as WPL cuts dividend by 40%

– Woodside Petroleum had reported a slightly better than expected result for the first half of 2015. The company already flagged the impact of the lower oil price to the market. WPL said “we remain on track to achieve our vision to become a global leader in upstream oil and gas and deliver superior shareholder returns.”

– WPL restated that it has produced 42.0 Mmboe in 1H15 down 9.7% year on year. It also reaffirmed its FY15 output target of 86-94mmboe. Woodside’s operational revenue fell 28% better than the market has expected. Even with the planned turnaround at Pluto, unplanned outages, and the impact of cyclone activity over the period, WPL’s net profit fell 38.6% over the year. However this was a better result than others in the sector.

– Woodside continues to make roads with its productivity program and is now targeting $800million in ongoing benefits by 2016. WPL’s acquisition of interests in the Australian Wheatstone LNG and Balnaves oil projects will add significant near-term and immediate production to its portfolio. Woodside’s North West Shelf Project (NWS) gas division is performing well and WPL successfully renewed sales contracts over the half.

– WPL’s total debt now stands at $3.971billion and the company said it has sufficient liquidity to fully fund current committed activities. WPL will pay US $0.66 dividend on the 23rd of September 2015. WPL’s dividend payout ratio remains at 80% of underlying earnings.

 

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Juliana Roadley, Market Analyst,