WDS -1.04%: A mixed set of first-half numbers for the oil & gas company today, a new look Woodside after they completed the acquisition of BHP’s Petroleum business ~12 months ago. EBITDA of ~$5b in the period was in line with consensus as higher production costs were offset by lower royalties, while a small beat at the profit line was mostly on a better marginal tax rate which is considered low quality.
Looking forward, Woodside maintained capex and production guidance while they are also expecting better LNG prices with more exposure to the spot market. Investors were cautious on the back of the numbers as the company puts money to work at Scarborough and Trion with the two projects moving through regulatory approvals soon after the company faced delays and higher costs when bringing Sangomar online. Risks of industrial action also remain with workers looking at a strike at their North West Shelf assets.
MM is now neutral WDS
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