WDS +3.48%: Shares had their biggest intraday gain in three months, after the oil and gas producer upgraded its full-year production forecast while simultaneously lowering capital expenditure guidance — a clear signal of improved operating efficiency and execution across its major projects.
- Sales Revenue: US$3.36bn (–9.4% YoY)
- Production of 50.8mmboe (–4.3% YoY)
- Average realized price/boe $60, +1.7% q/q
- FY26 production guidance increased to 192–197mmboe (up from 188–195mmboe)
- FY26 capex guidance lowered to US$3.7–4.0bn (down from US$4.0–4.5bn)
A clean update from Woodside that struck the right balance – higher production, lower spend, and continued progress on long-dated growth projects. The combination of operational upgrades and cost discipline reinforces confidence through FY26, as major projects like Scarborough near completion.
While the update is positive and things look constructive in the short term, there is a concern that project capex requirements could limit distributions to shareholders. Looking further ahead, structural pressure on long-term oil prices amid global electrification trends will remain key challenges for the business, for now we are happy to remain on the sidelines.
MM remains neutral toward WDS
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