Woodside share price rises despite 74% decline in FY23 profits

How did this energy giant perform in FY 2023?

| More on:
Worker at a gas and oil pipeline.

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 is having a decent session.

In early trade, the energy giant's shares are up 1.5% to $30.49 following the release of its FY 2023 results.

Woodside share price rises on FY 2023 results

  • Operating revenue down 17% to US$13,994 million
  • Underlying net profit after tax down 37% to US$3,320 million
  • Statutory net profit after tax down 74% to US$1,660 million
  • Fully franked final dividend down 58% to 60 US cents per share

What happened during the half?

For the 12 months ended 31 December, Woodside reported a 17% decline in operating revenue to US$13,994 million. This reflects lower prices across all commodities, partly offset by higher sales volumes.

Woodside's average realised price was down 30% to US$68.60 per barrel equivalent and annual sales volumes were up 19% to 201.5 million barrels.

The company's profits took a hit during the year due to its lower revenue and higher production costs. Woodside's underlying net profit after tax was down 37% to US$3,320 million.

On a statutory basis, the company's net profit after tax was down by 74% to US$1,660 million. This reflects non-cash post-tax asset impairments of US$1,533 million relating to Shenzi asset.

In light of its profit decline, Woodside cut its fully franked final dividend by 58% to 60 US cents per share. This brought its FY 2023 dividend to US$1.40 per share, which is down 45% year on year.

Management commentary

Woodside's CEO, Meg O'Neill, was pleased with the 12 months. She said:

Woodside is supplying energy the world needs from a high-quality portfolio which is geographically advantaged to meet growing demand for LNG. Our focus on disciplined capital management has allowed us to deliver consistently strong returns to shareholders.

Underlying profit was strong, enabling us to maintain an 80% dividend payout ratio. While realised prices were down year-on-year to levels closer to historic norms, annual sales volume topped 200 million barrels of oil equivalent (over 548 Mboe/d), generating revenue of almost US$14 billion. Free cash flow of US$560 million was a significant achievement in a period of major capital expenditure and normalised prices.

Outlook

Woodside has held firm with its guidance for FY 2024.

It is guiding to production of 185 Mmboe to 195 Mmboe for FY 2024 with capital expenditure of US5 billion to US$5.5 billion.

The Woodside share price is down 12% over the last 12 months.

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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

Worker on a laptop at an oil and gas pipeline.
Energy Shares

Woodside share price charging higher on North West Shelf approval

Woodside has been working more than six years to gain an extension for its North West Shelf gas project.

Read more »

Gas and oil plant with a inspector in the background.
Energy Shares

Does Macquarie rate Origin Energy shares a buy, hold or sell?

The broker has given its verdict on the energy giant. Let's see what it is saying.

Read more »

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

Ord Minnett tips Woodside shares to rise 15%+

Market-beating returns could be on offer from this energy giant.

Read more »

Workers inspecting a gas pipeline.
Energy Shares

Woodside share price lifts amid pending $25 billion project extension decision

Woodside shares are pushing higher ahead of a vital government project determination.

Read more »

gas burner alight on a stove
Energy Shares

What does Macquarie think AGL shares are worth?

How bullish is Macquarie on this major energy player?

Read more »

A man in a suit face palms at the downturn happening with shares today.
Energy Shares

Why is the Origin Energy share price sinking 4% today?

Let's find out why investors are hitting the sell button on Monday.

Read more »

A woman holds her finger to the side of her lips in contemplation as she looks upwards to an array of graphic images of light bulbs above her head, one of which is on and glowing.
Energy Shares

Do brokers think the AGL share price is a buy?

Are AGL shares a good investment right now?

Read more »

Cheerful businessman with a mining hat on the table sitting back with his arms behind his head while looking at his laptop's screen.
Energy Shares

With the 8% dividend yield, is the Woodside share price a buy?

Can investors get energised about this stock’s passive income potential?

Read more »