🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Woodside profit, dividend beat estimates, firm flags interest in Driftwood stake

Published 08/27/2024, 12:16 AM
Updated 08/27/2024, 03:30 AM
© Reuters. Gastech 2023 participants gather at the Australia's Woodside Energy's booth in Singapore September 7, 2023. REUTERS/Florence Tan/File Photo
WDS
-
NG
-

By Himanshi Akhand and Lewis Jackson

(Reuters) -Australia's Woodside (OTC:WOPEY) Energy reported on Tuesday a decline of 14% in half-year profit, hit by lower oil prices, but the result and its dividend beat market expectations, sending shares up 4%.

Chief Executive Meg O'Neill said there had been a flood of interest in the proposed sale of equity in Driftwood, a U.S. liquefied natural gas export project Woodside is set to own when it buys U.S. developer Tellurian (NYSE:TELL) for $1.2 billion, including debt.

"We're looking at companies who can support with upstream gas supply," she said, as well as those with an interest in offtake and even just the plant's infrastructure elements.

Woodside aims to have firm commitments on equity sales, if not signed deals, before it makes a final investment decision in the first quarter of 2025, O'Neill added.

Woodside also said it would take offline one of its five LNG trains at the Karratha Gas Plant between late 2024 and mid-2025 as the ageing field's production declines.

It posted underlying net profit after tax of $1.63 billion for the six-month period ended June 30, handily beating a Visible Alpha consensus estimate of $1.38 billion.

Shares in the company surged to close up 3.9%.

The profit slump was mainly due to lower oil prices and Woodside's average realised price fell to $63 per barrel of oil equivalent from $74 in the corresponding period last year.

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

Woodside also declared an interim dividend of 69 U.S. cents a share, down from 80 U.S. cents a year earlier, representing 80% of underlying net profit after tax.

The company had flagged a payout range of 50% to 80% and the market had expected a payout of 55 cents.

Latest comments

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