Woodside Petroleum Ltd (WPL.AX) of Australia reported 2021 profits more than tripled to a seven-year high, with higher-than-expected dividends to shareholders due to rising oil and gas prices and cost savings. I urged you to reward.
Woodside stocks rose 5% to their highest level in two years after net income after tax of $ 1.62 billion, excluding one-time costs. 31, up from $ 447 million in 2020, well above the $ 1.35 billion Visible Alpha consensus.
Woodside’s full-year dividend jumped to $ 1.35 per share, surpassing market expectations.
CEO Meg O’Neill said with a clever schedule and reduced operating costs to release liquefied natural gas (LNG) cargo and bring it to the spot market when prices soar in the northern hemisphere winter. Said that the results are changing rapidly.
“I think the word that characterizes 2021 and 2022 is’volatility’,” O’Neill told Reuters.
To take advantage of soaring spot LNG prices, the company has shown that the increased portion of contracted LNG cargo will be linked to the gas index rather than oil, and gas hub exposure will jump to 25% of production in 2022. It is expected. , Increased from 16% last year.
Woodside shareholders will vote for the BHP Group (BHP.AX) merger with the oil division in May to create the top 10 independent oil and gas producers with growth projects in Australia and the Americas.
This transaction involves the issuance of Woodside shares to BHP shareholders. This raises concerns about equity overhangs as some BHP shareholders are about to end their investment in fossil fuels.
But O’Neill said he was convinced that selling by BHP shareholders was more important than buying by US investors in particular.
“Our business is all offshore traditional production. Many US players of the same size as the new Woodside are very focused on shale,” O’Neill said.
(Report by Sonali Paul, additional report by Arundhati Dutta and Riya Sharma in Bangalore, edited by Shounak Dasgupta, Aditya Soni, Simon Cameron-Moore)
https://www.oedigital.com/news/494406-woodside-profit-hits-seven-year-high Woodside profits hit a seven-year high