WDS - Woodside Energy Group

[Ferret]

Woodside has decided not to pursue a merger with Santos. WDS up on the news, STO down.

I guess the value of STO was the sticking point and I'm glad WDS are being disciplined about this.
@debtfree

 

[UMike]

Just as I was evaluating taking some profit on a percentage of STO share.s

 

[qldfrog]

Just as I was evaluating taking some profit on a percentage of STO share.s

As WDS shareholder, very happy with that, why increasing Australian exposure?

 

[sptrawler]

Woodside has decided not to pursue a merger with Santos. WDS up on the news, STO down.

I guess the value of STO was the sticking point and I'm glad WDS are being disciplined about this.
@debtfree

Yes, I've never found Santos to be a well run company, and no doubt WDS would have trouble integrating it. IMO

 

[UMike]

I always thought the result was gonna be an asset swap where synergys were existent.

 

[divs4ever]

i am kinda happy to see this fall through

i think WDS will have a handful trying to digest the BHP assets properly first

plenty of businesses choke on 'transformational acquisitions

i hold WDS

 

[UMike]

i am kinda happy to see this fall through

i think WDS will have a handful trying to digest the BHP assets properly first

plenty of businesses choke on 'transformational acquisitions

i hold WDS

I totally agree.
Now if there was an individual asset that STO has that would suit WDS then yea. but a total merger seemed premature.

 

[UMike]

WDS is now at the tasty range.

FOMO now or should i stick to my low $30 buy target.

?????

 

[divs4ever]

WDS is now at the tasty range.

FOMO now or should i stick to my low $30 buy target.

?????

i am waiting ( with an order in the market ) at sub $25

but then i already hold several WDS , i can afford to be patient

good luck on whatever you choose

 

[Value Collector]

WDS is now at the tasty range.

FOMO now or should i stick to my low $30 buy target.

?????

Maybe sell a $30 put option and get paid to wait

 

[UMike]

Maybe sell a $30 put option and get paid to wait

Dunno much about that stuff.
Kept it simple and left a $30.31 order open.

 

[Value Collector]

Dunno much about that stuff.
Kept it simple and left a $30.31 order open.

Basically if you are happy to Buy WDS at say $30.00, you could sell a put for say $1 with a strike price of $30.

If on the expiry date WDS is $30 or under you have to buy the stock for $30, If the WDS share price is above $30 on expiration date you keep the $1, and can go and sell another put for another $1 if you want.

The trade of is that if the share price drops to $25 you still have to buy the stock at $30, but thats true with just having an order in the market anyway.

 

[UMike]

Just when we think WDS is on the Acquisition war path....

WOODSIDE TO SELL 15.1% SCARBOROUGH INTEREST TO JERA
Woodside has broadened its strategic relationship with JERA through a transaction that involves three core elements: equity in the Scarborough Joint Venture; LNG offtake; and collaboration on opportunities in new energy and lower carbon services.
1 Woodside has executed a binding sale and purchase agreement with JERA for the sale of a 15.1% non-operating participating interest in the Scarborough Joint Venture (JV) for an estimated total consideration of US$1,400 million.
2 This comprises the purchase price of approximately $740 million, and reimbursement to Woodside for JERA’s share of expenditure incurred from the transaction effective date of 1 January 2022. Completion of the transaction is expected in the second half of 2024.

 

[Dona Ferentes]

welcome to the real world.... if Japan doesn't have LNG, the lights go out. And they'll hedge their bets (sorry Qatar)

Japan has laid down a $US1.4 billion ($2.1 billion) vote of confidence in Australian gas by taking a big slice of Woodside Energy’s Scarborough project in Western Australia, underscoring Asia’s appetite for supply of the fossil fuel for decades to come.

The deal by JERA, Japan’s largest importer of LNG, to acquire a 15.1 per cent stake in the Scarborough development comes six months after Japan LNG agreed to buy a 10 per cent stake in a $US880 million deal.

The two deals, worth $3.5 billion in total, bring four major Japanese players – Tokyo Electric Power, Chubu Electric Power, Sojitz and Sumitomo – into Australia’s biggest resource project, a $16.5 billion development beset by legal challenges and environmental protests.

 

[Gunnerguy]

WDS dividend drops on disappointing results

 

[UMike]

WDS dividend drops on disappointing results

And haven't been punished that much.

 

[divs4ever]

cancelled my top up order yesterday

was unlikely to have been hit anyway

i expect more difficulties bedding in the BHP assets ( just the size and staffing adjustments )

 

[Skate]

WDS dividend drops on disappointing results

cancelled my top up order yesterday

Net profits are down 74% for Woodside, is it time to sell?
Oil had a hard finish to 2023. After crude oil peaked at over $94/bbl in September, it had fallen below $80/bbl by the end of 2023. This was despite efforts by OPEC to cut production. Gas also saw muted prices compared to the previous years. Unsurprisingly, these weaker commodity prices hit Woodside Energy (ASX: WDS) with the company announcing its net profits were down 74% on the previous year. It wasn’t all bad news, with the company offering a higher dividend than the market had anticipated – still below 2022 levels. It also saw record production off the back of the merger with BHP Petroleum.

"While realised prices were down year-on-year to levels closer to historic norms, annual sales volume topped 200 million barrels of oil equivalent (over 548 Mboe/d), generating revenue of almost $14 billion. Free cash flow of $560 million was a significant achievement in a period of major capital expenditure and normalised prices,” said Woodside CEO Meg O’Neill.

Despite falls in profit
Michael Slack from Martin Currie, argues that the company is still a HOLD for a range of reasons, with the dividends no small part of this. In this wire, he discusses the results and outlook for the sector.

Woodside Energy (ASX: WDS) full-year 2023 key results
Net profit after tax - $1.66bn (down 74%)
Operating revenue - $13.99bn (down 17%)
Free cash flow - $560m (down 91%)
Annual sales volume – 201.5 MMboe (up 19%)
Fully franked final dividend US$0.60 - AU$0.877 (down 58%)
Full-year fully franked dividend US$1.40 (down 45%)

Michael Slack from Martin Currie responds to five questions
1. What was the key takeaway from this result?
I think there were a couple of key takeaways. One was that they were able to maintain their 80% payout ratio on the dividend payment. They paid $1.40 franked over the course of 2023, which is better than the market expected because the 80% payout ratio was gauged off NPAT. That puts them on a 6% fully franked yield, so that’s quite attractive. The other key was all of their growth projects are on schedule. Their Sangomar project off Senegal by middle 2024, they’re expecting Scarborough first cargo by 2026 and Trion first oil by 2028. The other thing is they are on track to meet their 15% Scope 1 and 2 emission reduction target by 2025.

2. Were there any major surprises that investors should be aware of?
The dividend surprised positively, with the rest of the results pretty much as expected. WDS released production information and a number of line items at the end of January, so there wasn't too much scope for surprise in the result.

3. Would you Buy, Hold or Sell the stock on the back of this result?
Rating: HOLD - The dividend yield is supporting the share price where it is.

4. What’s your outlook on this stock and the sector over the year ahead?
I think the sector is quite positive in the sense I expect commodity prices to hold up over the year ahead. I think the outlook for Woodside in that context would be very strong cashflows, which are supportive of dividends and delivery of their projects in the years ahead.

5. Are there any risks to this company and its sector that investors should be aware of?
Most of the risk is geopolitical. For example, activity in the Middle East is having a big impact on oil markets. Activity in Europe is having a massive impact on gas markets as they wean themselves off Russian supply and have to put in re-gas capacity for LNG. A lot will depend on how the likes of OPEC and US navigate their way through the supply of oil and gas over the course of this year. If we see increased tensions in the Middle East that could help the sector.

Related video
Woodside CEO: We See a Very Bright Future for LNG (Bloomberg)
https://www.msn.com/en-au/video/mon...-future-for-lng/vi-BB1iWv8u?ocid=msedgntp&t=3

Skate.

 

[divs4ever]

no , i would still buy .. but at a lower price

i hold WDS

am thinking something around $23 ( or lower )

i have no WDS orders in the market currently

 

[Rabbithop]

no , i would still buy .. but at a lower price

i hold WDS

am thinking something around $23 ( or lower )

i have no WDS orders in the market currently

Hi divs, do u think it's gonna drop that low or just hoping.