WDS - Woodside Energy Group

[dyna]

You have to wonder what WPL's CEO has been blabbering on about, recently.
Do the company's top 20 shareholders really believe her spiel?
They'll be paying wages alright. But creating much wealth for shareholders?

 

[divs4ever]

You have to wonder what WPL's CEO has been blabbering on about, recently.
Do the company's top 20 shareholders really believe her spiel?
They'll be paying wages alright. But creating much wealth for shareholders?

as a NON-top 20 shareholding ( but one likely to be given many more shares by BHP , soon )

NO ( i don't believe a word )

considering they will have to handle the synergy of a ( fractured ) group at least as big as the current WPL and operating in extra locations ( than WPL is used to without the persuasive powers of BHP )

i would half expect the current management to be replaced by BHP 'orphans ' within 3 years ( but that is just a wild , uninformed guess )

 

[Belli]

Fair point and I am looking at adding VAS, into the core holding of ETF's and LIC's, I don't see any hurry to add VAS atm..
This is more a buy to sell one, as I don't see the next 10 years being reflective of the last 10 and is also why I earlier mentioned AGL which I've also never owned before.
Everyone to their own. ?

Absolutely. Each should invest according to their risk profile.

Mind you with my investment profil (indifference and OK to accept the market average) I don't get any of the excitement which apparently goes with individual share selection. ETFs don't have emotion and the mangers of LICs do it full-time on my behalf. All I have to know is through constantly buying, the distribution I received for VAS for the September quarter alone was up 9.5% compared with the entire 2020-2021 financial year.

 

[sptrawler]

Absolutely. Each should invest according to their risk profile.

Mind you with my investment profil (indifference and OK to accept the market average) I don't get any of the excitement which apparently goes with individual share selection. ETFs don't have emotion and the mangers of LICs do it full-time on my behalf. All I have to know is through constantly buying, the distribution I received for VAS for the September quarter alone was up 9.5% compared with the entire 2020-2021 financial year.

So very true and I am of the same ilk.
I have a core of shares, ETF's, LIC's for dividend, a backstop of term deposit to see me over the once in a lifetime event that seems to happen every 7 years and then the play money which I try and pick more winners than losers with. ?

 

[Dona Ferentes]

In a statement issued today (16.12.21) ACCC, the competition regulator, said it has closely examined the domestic gas supply market in WA (which is where any competition concerns might emerge). The Commission’s review focused on the supply of domestic natural gas in Western Australia “given this is where Woodside and BHP Petroleum overlap in Australia.”

“Woodside’s and BHP Petroleum’s customers for LNG, LPG, condensate and oil are either offshore or in areas where Woodside and BHP Petroleum do not overlap,” The commission said.

ACCC chair Rod Sims said in the statement:

“We examined the proposed acquisition closely as it would combine two of the four largest domestic natural gas suppliers in Western Australia. “We found that post acquisition, Woodside would continue to face competition from a range of suppliers of domestic gas, including major producers Chevron and Santos, and from several other smaller suppliers including Shell and ExxonMobil. Woodside’s share of domestic gas after the acquisition will be approximately 20 per cent."

“In Western Australia, gas exporters are required to reserve the equivalent of 15 per cent of their export production for the domestic market, ensuring that domestic gas will continue to be available from Woodside and BHP Petroleum’s export assets, and from a range of other competitors."

The ACCC also considered that Woodside would be unlikely to have an incentive to reduce supply of natural gas from BHP Petroleum’s majority-owned, domestic-only site at Macedon, given gas from Macedon can only be supplied to the Western Australian domestic market. In addition, the number of competing suppliers in that market are also likely to constrain Woodside from decreasing gas supply.

and that's about all they do!!

 

[sptrawler]

I would guess eventually, there will be a shipping terminal installed somewhere on the East coast, for gas supplies from W.A

 

[mullokintyre]

WPL may have to change its name to Woodside Hydrogen Limited sometime in the future.
From Todays OZ

Oil and gas giant Woodside will spend the next six months working with two major potential Asian customers on the feasibility of its proposed liquid hydrogen exports out of Western Australia.
On Tuesday, Woodside signed a memorandum of understanding with entities connected to Singapore utilities and infrastructure giant Keppel Corporation and Japan’s Osaka Gas to assess the establishment of a long-term stable supply chain that links its proposed 1500 tonnes of hydrogen per day export hub in Perth to gas suppliers in both markets.

It is understood Keppel approached Woodside, initially through Austrade, and then brought Osaka in as well.
Woodside said it would work specifically with Keppel Data Centres Holding, Singapore’s monopoly piped town gas supplier City Gas (also owned by Keppel), Osaka Gas Singapore and City-OG Gas Energy Services, a joint venture of Keppel and Osaka Gas.

Woodside unveiled plans for its H2Perth hub on government-leased land in Kwinana, WA, in October.

Initial phase cost estimates are for a $1bn hub with a target of 300 tonnes per day of hydrogen production (20 per cent of potential target capacity), which can be converted into 600,000 tonnes per annum of ammonia or 110,000 tonnes per annum of liquid hydrogen.

Mick

 

[Dona Ferentes]

WPL may have to change its name to Woodside Hydrogen Limited sometime in the future...

I guess that is the logical outcome when it seems we have to decarbonise hydrocarbons

 

[Skate]

WPL may have to change its name to Woodside Hydrogen Limited sometime in the future.
From Todays OZ

Mick

@mullokintyre thanks for the excerpt behind the paywall. At times I'll get all excited to follow a link & then be confronted with a paywall & feel disappointed. I hope those who read your posts take notice of this fact.

Skate.

 

[sptrawler]

WPL may have to change its name to Woodside Hydrogen Limited sometime in the future.

IMO Woodside is in the box seat of all the energy suppliers ATM, copious amounts of LNG to replace coal fired at call generation and overseas contracts to buyers who will want to transition from LNG to H2.
Talk about being in the right space, at the right time IMO.

I do hold.

 

[Dona Ferentes]

Woodside Petroleum will enjoy about a $US1 billion ($1.4 billion) boost to pre-tax profit thanks to the reversal of write-downs at two gas ventures in Western Australia, while sales have rocketed higher on surging international gas prices.

The news of the reversal of impairments at the Pluto-Scarborough venture and at the North West Shelf gas project came as Woodside posted a better-than-expected 86 per cent jump in sales in the December quarter to $US2.85 billion.

Woodside said the record December quarter sales came on the back of a 53 per cent jump in average realised prices to $US90 a barrel of oil equivalent (boe), including an average LNG price of $US93/boe.

 

[sptrawler]

With the tensions in Europe over Russia, Woodside may have another customer with the EU.

Australian LNG readied to aid Europe over Ukraine crisis

The United States is reaching out to major gas suppliers including Australia.

www.afr.com

 

[divs4ever]

WOODSIDE TO WITHDRAW FROM MYANMAR
Woodside has decided to withdraw from its interests in Myanmar. Woodside has operated in Myanmar since 2013, conducting multiple exploration and drilling campaigns. It holds a 40% participating interest in the A-6 Joint Venture as joint operator and participating interests in exploration permits AD-1 and AD-8.
Woodside had previously announced that it was placing all Myanmar business decisions under review following the State of Emergency declared in February 2021 and the deteriorating human rights situation in the country. In 2021 Woodside completed the relinquishment of exploration permits covering offshore Blocks AD-2, AD-5 and A-4 and is in the process of withdrawing from Blocks AD-6, AD-7 and A-7. Woodside will now commence arrangements to formally exit Blocks AD-1 and AD-8, the A-6 Joint Venture and the A-6 production sharing contract (PSC) held with the Myanma Oil and Gas Enterprise (MOGE).

The non-cash expense associated with the decision to withdraw from Blocks A-6 and AD-1 is expected to impact 2021 net profit after tax (NPAT) by approximately US$138 million. This is in addition to the US$71 million exploration and evaluation expense for Block AD-7 disclosed in Woodside’s Fourth Quarter Report on 20 January 2022. These costs will be excluded from underlying NPAT for the purposes of calculating the dividend. Woodside CEO Meg O’Neill said while Woodside had hoped to develop the A-6 gas resources with its joint venture participants and deliver much-needed energy to the Myanmar people, there was no longer a viable option for Woodside to continue its activities. “Woodside has been a responsible foreign investor in Myanmar since 2013 with our conduct guided by the UN Guiding Principles on Business and Human Rights and other relevant international standards. “Given the ongoing situation in Myanmar we can no longer contemplate Woodside’s participation in the development of the A-6 gas resources, nor other future activities in-country,” she said.

DYOR

i hold WPL ( and am liable to get MORE in the BHP demerger )

 

[Garpal Gumnut]

BP are selling $20bn. of investment in Russian Oil.

Money flows.

gg

 

[Dona Ferentes]

the spot LNG price should be robust

Germany signalled a U-turn in key energy policies, floating the possibility of extending the life-spans of coal and even nuclear plants to cut dependency on Russian gas, part of a broad political rethink following Moscow’s invasion of Ukraine. Europe’s top economy has been under pressure from other Western nations to become less dependent on Russian gas, but its plans to phase out coal-fired power plants by 2030 and to shut its nuclear power plants by end-2022 have left it with few options.

In a landmark speech on Sunday, Reuters reports that Chancellor Olaf Scholz spelled out a more radical path to ensure Germany will be able to meet rising energy supply and diversify away from Russian gas, which accounts for half of Germany’s energy needs.

 

[Sean K]

Is it too late?

 

[Garpal Gumnut]

Is it too late?

View attachment 138681

It is said that delay can still be profitable.

gg

 

[sptrawler]

Is it too late.
That is always the nagging question, I was lucky getting in before current price surge.

 

[rederob]

The weekly chart below shows WPL has decisively broken out of a 4 year downtrend.
If or when the USA decides to sanction Russia's oil and/or gas, WPL will increase in price further again.
With Ukranians putting up a defence that was not expected, the quick victory Russia expected looks like drawing out for a considerable time.
And the longer the better for our Oil and gas producers.

You might note that WPL is not even half its previous record price despite there being very little comparative difference in the oil price back in 2008. So if the past is any indication of where WPL is headed, the we are in for some decent price action in coming weeks.

 

[Craton]

@rederob
Not that's it's relevent ATM but from memory, apart from the GFC fallout from the WPL peak in 2008, wasn't there a substantial sell down/out by a major WPL shareholder (Shell???) in play as well?
Perhaps that sell down came later but the WPL SP has languished for sometime since which, I've attributed in some part to the "climate change" mentally that is so prevalent.

So, are the days of having WPL as a sheet anchor in one's portfolio gone forever?
No, I don't think so, not with the BHP/WPL deal still to be finalised.

Coming back to the point in hand, this "special operation" or whatever Putin/Russia calls it (abhorrent as it is and I don't want to come across as callous in saying this) has certainly created some opportunities for the astute investor.