WDS +2.78%: Delivered a FY24 (December year-end) result in line with expectations, with a modest profit and dividend beat driven by lower expenses over the period.
- FY24 net-profit-after-tax (NPAT) $2.88bn vs. consensus $2.83bn
- Final Dividend per share 53 cents per share vs. 52 cents per share consensus
Gearing was higher than expected at 17.9%, though this is meant to peak in 2025-26, as WDS targets over $150m in cost reductions this calendar year, with equity sell downs to provide support. In the near-term, investors will be focused on derisking the Louisiana LNG project, via securing LNG offtake agreements.
Investors like WDS for its yield – management has their work cut out for them cutting costs to maintain earnings/dividends (payout ratio of 80%) amidst lower oil prices.
MM remains neutral WDS
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