WDS - Woodside Energy Group

[qldfrog]

Hum, we may like or not the analysis but the numbers are there:
A huge amount of the gas we miss here in Australia but sell, is actually not even used by our clients especially China but actually resold at a profit.
Could we not just simply not sell them...at a cost and save us and the planet the effort

China and Japan re-export Aussie gas as they whinge

This is the most maddening observation of energy trade worldwide. The East Coast Gas Cartel still has local prices sitting 10-20% above export netback prices to Europe and Asia: This is playing a key role in keeping electricity prices around 80% higher than they should be on a quarterly moving...

www.macrobusiness.com.au

 

[Ferret]

At the start of the year I hoped WDS had found a floor just under $30 and it would be back up from there.

With today's close on its lows at $29.10, things aren't looking too good. Hope we are not on our way back down to around $20.

@debtfree

 

[divs4ever]

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

well as i see it , the key is how much future oil and gas is going to be sold outside the US Dollar ?

since the major commodity trading exchanges utilize the US Dollar ( but some big customers are trading direct )

you start to have a disconnect between the actual buyers/sellers and the traders leaving the short-sellers with better influence

on top of that will be rising costs/royalties putting pressure on earnings

so i reckon i am in with a chance

BTW i expect some write-downs on the BHP assets and that could NPAT look underwhelming

 

[sptrawler]

Looks like Australia is choking on its clean green dream, no one wants to pay us extra for our 'Green' ideology, as with nickel reality is catching up with us yet again. Could be a good WDS buying opportunity coming up, down the track.

I certainly hope we don't go broke before we save the World.

Buyers baulk over Woodside’s green fuel

The oil and gas giant has told investors that buyers are finding it more difficult to use lower carbon alternatives like hydrogen as costs remain high.

www.afr.com

Woodside customers ‘won’t help pay’ for decarbonisation

The company’s boss Meg O’Neill says it needs to cut costs to improve the viability of some carbon emission programs, but it has no prospect of recovering the investment from gas buyers.

thewest.com.au

Woodside Energy’s customers ‘won’t be paying a premium’ for ‘cleaner’ gas​

Woodside Energy has warned its shareholders they could have to wear the bills for the company’s decarbonisation programs, with little prospect of passing on the costs to its mainly Asian gas buyers.

Detailing its climate action strategy ahead of another showdown with investors and activists at next month’s annual meeting, Woodside chief executive Meg O’Neil revealed the group is looking at costly “large-scale abatement” options for its LNG plants as part of hitting its 2050 carbon emission reduction targets.

 

[Dona Ferentes]

Net profits are down 74% for Woodside, is it time to sell?.

(I) shoulda.

now below $29

 

[Skate]

I've done some calculations and estimate that the dividends from my 4 positions (BHP, CBA, FMG and WDS) should be $51,378. I plan to reinvest these dividends into WDS, which has a strong track record of paying consistent dividends and has the potential to increase its payouts over time.

@Dona Ferentes, I'm currently running an investment experiment with 5 positions, one of which is WDS. While the price bar remains 'Aqua,' WDS is a hold for me, as I balance my desire for potential long-term growth with the need to manage my exposure to fossil fuel risks. I'll continue to monitor the stock's performance and adjust my strategy as needed to ensure my portfolio remains diversified and aligned with my investment goals.

Skate.

 

[Dona Ferentes]

I'm currently running an investment experiment with 5 positions, one of which is WDS. While the price bar remains 'Aqua,' WDS is a hold for me, as I balance my desire for potential long-term growth with the need to manage my exposure to fossil fuel risks. I'll continue to monitor the stock's performance and adjust my strategy as needed to ensure my portfolio remains diversified and aligned with my investment goals.

Skate.

skate, I've been following the Dump It Here volte face with interest.

 

[Dona Ferentes]

@Skate ... taking into account the last sentence

...adjust my strategy as needed to ensure my portfolio remains diversified and aligned with my investment goals.

... that's what's driving my thoughts. Sitting on $25k of WDS from BHP spinoff, and currently if sold there's no CGT at 29 bucks. I hold BPT at low entry point... as mentioned elsewhere, these resource extractors are price takers in a cyclical economy. If oil is high, as also LNG, then end use petrol is also, so I feel comforted holding even if I'm paying more at the pump.

Further thoughts (interrelated)... lovely dividend . A long term play. Projects are big and long lead times. A lot of activists gunning for an easy target.

Will hydrocarbon uptake continue in decades ahead? And that oil price?!

And finally, need some cash, so selling off tax effectively is the strategy.

 

[Skate]

need some cash, so selling off tax effectively is the strategy.

@Dona Ferentes, that is an excellent decision for the reasons you outlined.

Will hydrocarbon uptake continue in decades ahead?

The simple answer is yes.

WDS currently has long-term deals in place to supply gas to Japan, reflecting the ongoing demand for fossil fuels to transition to a low-carbon economy.

Skate.

 

[Dona Ferentes]

WDS currently has long-term deals in place to supply gas to Japan, reflecting the ongoing demand for fossil fuels to transition to a low-carbon economy.

I've just had a read of the latest investor presentation :

THRIVING THROUGH THE ENERGY TRANSITION
12 March 2024​

there's definitely to preempt the critics, and position the company to be among the winners.

 

[Skate]

WDS currently has long-term deals in place to supply gas to Japan, reflecting the ongoing demand for fossil fuels to transition to a low-carbon economy.

@Dona Ferentes there is also a significant signed agreement to supply LNG to Korea (Korea Gas Corporation - KOGAS), annually for 10.5 years, starting in 2026.

I should point out that this is Woodside’s first long-term supply agreement with Korea, which by the way is the "world’s third-largest LNG market". This agreement should be a testament confirming how strong the demand is for Woodside’s LNG products.

I'm just saying that Woodside’s LNG products are in strong demand to secure the energy security of many countries - for many years into the foreseeable future.

Skate.

 

[Skate]

LNG is a transitional fuel
Furthermore, Woodside knows the importance of international partnerships in the energy sector, particularly in the context of the global shift towards cleaner energy sources and the need for energy security. IMHO, the best years for WDS are ahead as Scarborough is expected to produce its first LNG cargo in 2026 with contracts already in place.

Skate.

 

[Dona Ferentes]

LNG is a transitional fuel
Furthermore, Woodside knows the importance of international partnerships in the energy sector, particularly in the context of the global shift towards cleaner energy sources and the need for energy security. IMHO, the best years for WDS are ahead as Scarborough is expected to produce its first LNG cargo in 2026 with contracts already in place.

Skate.

totally agree, that was my "macro" conclusion .

still holding

 

[Skate]

For holders of the fifth-most traded company last week (WDS)
On the 28th of Feb 2024 Woodside Energy Group (WDS) CEO, Meg O'Neill spoke with Tom Piotrowski about the company’s full-year results, its dividend policy, how the company is managing the energy transition, its strategic relationships with its Japanese partners and more.

The brief video is definitely worth viewing
You can watch the full interview on the CommSec website.

Woodside Energy Group (WDS) CEO, Meg O'Neill

Woodside Energy Group (WDS) CEO, Meg O'Neill speaks with Tom Piotrowski about the company’s full year results, its dividend policy, how the company is managing the energy transition, its strategic relationships with its Japanese partners and more.

www.commsec.com.au

Skate.

 

[UMike]

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

@debtfree - 92c dividend and almost upto where I bought it from.

Personally, Still very positive about the prospects of energy in Genral.

 

[debtfree]

No thoughts either way about WDS but just seen this article by Kerry Sun from Market Index, thought it might be of interest to some. If not, no harm done.

Oil prices are soaring – so why is Woodside struggling for upside?

Woodside is trailing behind the share price performance of peers such as Santos, Karoon Energy and Beach Energy. Here's why.

www.marketindex.com.au

 

[divs4ever]

awesome ... i also hold BPT ( 'free-carried' ) as well as WDS

 

[Skate]

No thoughts either way about WDS but just seen this article by Kerry Sun from Market Index, thought it might be of interest to some. If not, no harm done.

Oil prices are soaring – so why is Woodside struggling for upside?

Woodside is trailing behind the share price performance of peers such as Santos, Karoon Energy and Beach Energy. Here's why.

www.marketindex.com.au

@debtfree that article raises concerns about dividends

Energy Transition
Woodside is transitioning from a dividend-paying business to a growth business, focusing on decarbonisation and new energies, which involves significant investment.

Dividend Concerns
There are concerns about Woodside’s future dividends due to potential changes in "production-sharing contracts" in Senegal and a forecasted drop in dividends per share by 2026. The article suggests that while Woodside is committed to the energy transition, this path may affect short-term shareholder returns, especially dividends.

Renegotiation of Contracts
This is not good news for investors as the newly elected Senegalese President, Bassirou Diomaye Faye, plans to revisit the contracts of oil and gas projects developed by Woodside Energy Group Ltd. The aim is to boost revenue for the state. The new administration intends to increase the state’s shares and change the system of sharing production. Move for them and less for shareholders

My observations
These potential changes could have significant implications for Woodside’s operations in Senegal and its future dividends.

Skate.

 

[Sean K]

@debtfree that article raises concerns about dividends

Energy Transition
Woodside is transitioning from a dividend-paying business to a growth business, focusing on decarbonisation and new energies, which involves significant investment.

Dividend Concerns
There are concerns about Woodside’s future dividends due to potential changes in "production-sharing contracts" in Senegal and a forecasted drop in dividends per share by 2026. The article suggests that while Woodside is committed to the energy transition, this path may affect short-term shareholder returns, especially dividends.

Renegotiation of Contracts
This is not good news for investors as the newly elected Senegalese President, Bassirou Diomaye Faye, plans to revisit the contracts of oil and gas projects developed by Woodside Energy Group Ltd. The aim is to boost revenue for the state. The new administration intends to increase the state’s shares and change the system of sharing production. Move for them and less for shareholders

My observations
These potential changes could have significant implications for Woodside’s operations in Senegal and its future dividends.

Skate.

Is this enough to force you to shift to another dividend payer, or is it wait and see?

 

[Skate]

Is this enough to force you to shift to another dividend payer, or is it wait and see?

@Sean K, at this point, it’s all about patience and observation. I’m continually reassessing my investment strategy to ensure that each position aligns with my policy guidelines.

I adhere to a personal rule
‘I never react, I always respond.’ This approach allows me the necessary time to think things through."

Skate.