The Woodside Energy Group Ltd (ASX: WDS) share price went up around 8% last month, while the S&P/ASX 200 Index (ASX: XJO) went up 10%.
We can see the share price changes on the chart below.
Woodside's financial year follows the calendar year, rather than finishing on 30 June 2023, but we can still analyse why the Woodside share price finished where it did over the prior 12 months.
The ASX energy share has seen a lot of energy volatility over the past year.
Investors often focus on the most recent updates to form an opinion, so let's have a look at what has happened recently.
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Sales and earnings recap
Partially thanks to the merger with the petroleum division of BHP Group Ltd (ASX: BHP), Woodside was able to report that net profit after tax (NPAT) for the 2022 year increased by 228% to US$6.5 billion, while operating cash flow grew by 132% to US$8.8 billion. Profit is a key factor for the Woodside share price.
In that annual result, it reported a realised price of $98.4 per barrel of oil equivalent compared to a production cost of $8.1 per barrel of oil equivalent.
The most recent update was for the three months to 31 March 2023. It delivered quarterly production of 46.8 million barrels of oil equivalent, down 9% from the 2022 fourth quarter due to "planned turnaround and maintenance activities." But, its full-year production guidance was unchanged.
Quarterly revenue was US$4.33 billion, down 16% from the fourth quarter of 2022 because of lower production and lower realised prices.
Woodside said that it achieved a portfolio average realised price of $85 per barrel of oil equivalent. It noted it sold 32% of produced LNG at prices linked to gas hub indices.
While the energy price has reduced, Woodside continues to generate solid revenue and earnings, and it's making progress on its energy projects.
Project progress
The ASX energy share said that its Scarborough and Pluto Train 2 projects in Western Australia were 30% complete as of the 31 March 2023 quarterly update.
Woodside said that the development drilling program for Sangomar progressed, with ten of 23 wells completed. The floating production storage and offloading topsides integration and pre-commissioning works continue in Singapore.
After March, the ASX energy share said that the Mad Dog phase two, in the Gulf of Mexico, successfully achieved its first production and will "continue to ramp up" through 2023.
A couple of weeks ago the business also announced that it had made a final investment decision and approved the development of the Trion resource in Mexico. Woodside said this investment is expected to deliver an internal rate of return (IRR) (per year) of greater than 16% with a payback period of less than four years.
Woodside share price valuation
The expectations that investors had for Woodside's profit in 2023 (and beyond) would also likely have impacted where the Woodside share price finished the 2023 Australian financial year.
According to Commsec, the ASX energy share is valued at 12 times FY23's estimated earnings, with a possible grossed-up dividend yield of 9%.
