Woodside share price turns red following production update

What's going on with this energy giant's shares on Tuesday?

| More on:
A man rests his chin in his hands, pondering what is the answer?

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Woodside Energy Group Ltd (ASX: WDS) share price was on course to record a small gain until the release of an announcement late in the afternoon.

The energy producer's shares are now down 1.5% to $36.14.

What's going on with the Woodside share price?

This afternoon, Woodside released a small update on a few items to expect in its upcoming full year results release.

Following a review of the year-end carrying values of its assets, the company expects to recognise a non-cash, post-tax asset value impairment reversal of approximately $630 million (pre-tax value of approximately $900 million) for the Wheatstone asset. This is primarily due to a revision in short and long term LNG price assumptions.

The company also expects to recognise a Pluto petroleum resource rent tax (PRRT) deferred tax asset (DTA) of approximately $1,360 million. This is primarily due to higher 2022 income, improved future price assumptions, and additional volumes processed through the Pluto-KGP Interconnector.

The release also notes that these will be excluded from underlying net profit after tax (NPAT) for the purposes of calculating the 2022 full year dividend. This is consistent with prior practice.

Production disruption

The real drag on the Woodside share price this afternoon is likely to be an update on its planned maintenance.

Management explained that the Pluto LNG operation will have four weeks of maintenance in the second quarter. The North West Shelf LNG train 1 will have four weeks of maintenance in the third quarter and the Ngujima-Yin FPSO dry dock will have four month of maintenance during the first half.

However, Woodside's full year production guidance remains unchanged at 180MMboe to 190MMboe despite this. Though, investors appear to believe the lower end of the range is more likely now judging by the share price reaction.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

Cropped shot of a mature businessman brainstorming and setting financial goals with notes on a glass wall.
Energy Shares

Is it time to sell this ASX 200 uranium share amid 'ongoing challenges'?

The ASX 200 uranium producer’s latest production update is a red flag for this fundie.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Energy Shares

Guess which ASX uranium stock just scored a buy rating from a leading broker

Bell Potter has good things to say about this uranium developer and its high-grade project.

Read more »

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

Are Woodside shares the number one pick in the energy sector?

One leading broker thinks that the energy giant is the best option for investors right now.

Read more »

A young woman carefully adds a rock to the top of a pile of balanced river rocks.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

Energy and utilities stocks led the way last week with 4%-plus gains.

Read more »

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant
Dividend Investing

Should I buy Santos shares for dividend income?

Santos shares have been steadily upping their dividends since 2020.

Read more »

Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.
Energy Shares

Are Santos shares a screaming buy?

Goldman Sachs thinks now could be a good time to buy this energy stock.

Read more »

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
Energy Shares

What is getting investors excited about this ASX 200 uranium stock today?

There's a good reason why this share is charging higher on Wednesday.

Read more »

Businessman studying a high technology holographic stock market chart.
Energy Shares

Is this stock the 'best placed' of the ASX uranium shares?

This fund manager thinks so.

Read more »