MELBOURNE (Reuters) -Woodside Energy Group Ltd more than tripled its interim dividend payout on Tuesday after the Australian gas producer posted a five-fold increase in first-half profit on booming oil and gas prices and its takeover of BHP Group (NYSE:BHP)’s petroleum arm.
Woodside (OTC:WOPEY) has benefited from soaring liquefied natural gas (LNG) prices as sanctions on Russia after its invasion of Ukraine have forced gas buyers from Asia and Europe to seek alternative suppliers in what was already a tight market.
Now among the world’s top 10 independent oil and gas producers, Woodside announced an interim dividend of $1.09 per share, handing shareholders $2.1 billion, more than triple last year’s payout and topping analysts’ forecasts.
Woodside’s shares jumped as much as 3.8% after the result, outpacing gains in the broader market.
“Our first results since the completion of the merger with BHP’s petroleum business highlight the increased financial and operational strength delivered by our larger, geographically diverse portfolio of high-quality operating assets,” Chief Executive Officer Meg O’Neill said.
Woodside posted an underlying net profit after tax of $1.82 billion for the six months to June 30, up from $354 million a year earlier. The result beat analysts’ estimates of around $1.49 billion, according to Visible Alpha.
Following the merger with BHP’s petroleum arm, Woodside now owns 100% of the $5.6 billion Scarborough gas project, its biggest growth project, where it has been looking to sell a stake on and off for more than 18 months.
O’Neill said the company was in talks with “high quality” prospective partners, but in light of the strength of the LNG market it would only sell if it gets fair value for what is “an extraordinarily important asset for the future of Woodside”, due to start producing in 2026.
“But again, we’re not going to fire sale this critical asset,” O’Neill told analysts on a conference call.
She did not comment on whether the company was still looking to sell as much as a 50% stake in Scarborough.
Woodside has begun a strategic review of all the assets in the enlarged business to map out its next growth project, which could include new energy, and Browse and Greater Sunrise gas off northwest Australia, she said.
Source: Economy - investing.com
