Woodside Petroleum shares on watch as profit slumps 74%

The Woodside Petroleum Limited (ASX: WPL) share price is on watch after a huge drop in FY19 statutory profit but strong free cash flow numbers.

The Woodside Petroleum Limited (ASX: WPL) share price will be one to watch in early trade after reporting a 73.96% slump in net profit after tax for FY19.

a woman

What did Woodside announce today?

The group's shares could move early today as one of many ASX 20 companies reporting today.

In its full-year results for the period ended 31 December 2019, Woodside's net profit after tax slumped to US$382 million compared to $1,467 million in FY 2018.

On Monday, the Woodside Petroleum share price fell after announcing a $720 million after-tax impairment in relation to its Kitimat assets in Western Canada.

Tropical Cyclone Veronica affected first-quarter operations while lower realised prices and changes in accounting standards also hit hard.

On an underlying basis, Woodside posted a US$1,063 million profit and free cash flow of $2.1 billion.

Woodside's operating revenue fell 7% to US$4,873 million but there was the US$720 million charge that hit the bottom line. Operating cash flow came in at US$3,305 million with a final dividend of US 55 cents per share (cps).

The Woodside Petroleum share price will be worth watching today after reporting a total US 91 cps dividend.

Annual production totalled 89.6 million barrels of oil equivalent (mmboe) with operated LNG reliability of 97.8%. Woodside's gas unit production cost came in at $3.9 per barrel of oil equivalent (boe) with a gross margin of $24.0 per boe.

How will the Woodside Petroleum share price react today?

It's hard to say where the Woodside Petroleum share price is headed today, after the company braced the market on Monday for these results.

Woodside did report strong margins in FY 2019 and a 36% increase in free cash flow. The group's balance sheet remains strong with 14.4% gearing and a 3.6% cost of debt.

The US 91 cps dividend represents an 80% payout ratio to shareholders with a 5.3% dividend yield, which makes the Woodside Petroleum share price worth watching.

Woodside is forecasting FY 2020 production of 97 to 103 mmboe. Investment expenditure guidance of $4,100 million to $4,400 million is expected next financial year.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Two workers on a tablet at a mine site, with mining machinery behind them.
Resources Shares

Fortescue vs BHP: Which ASX miner is better for passive income in October?

Comparing Fortescue vs BHP shares for passive income—who pays the bigger franked dividend, and which miner I'd buy today for…

Read more »

Female miner standing smiling in a mine.
Broker Notes

3 ASX mining shares with 43% to 322% upside ahead: brokers

The miners remain on an upward trajectory despite the broader market weakening in 2026.

Read more »

Two workers on a tablet at a mine site, with mining machinery behind them.
Resources Shares

Is BHP the best ASX mining share to buy for the next 5 years?

I look at how copper, iron ore, and potash could reshape the mining giant over the next five years.

Read more »

Mining equipment and red iron ore against blue sky.
Resources Shares

Fortescue posts September 2026 quarterly earnings update

Fortescue iron ore shipments fell 6% in Q1 2027, with debt up as the miner paid its final dividend and…

Read more »

Gold bars on top of coins.
Resources Shares

Ramelius Resources September quarter earnings: Gold production update and outlook

Ramelius Resources lifted gold output and cash for the September quarter as it advances major projects and targets growth through…

Read more »

Woman with gold nuggets on her hand.
Resources Shares

West African Resources delivers record Q3 gold output, on track for 2026 targets

West African Resources delivered record group gold production in Q3 2026 and remains on track for annual guidance.

Read more »

Two people wearing hard hats talking with each other at a mine site, with two workers in the background.
Resources Shares

Fortescue vs PLS Group: Which ASX mining share is the better buy?

Which blue chip miner offers more upside—Fortescue or PLS Group? I dig into the numbers, dividends, and value to find…

Read more »

Stacked gold bricks.
Resources Shares

Regis Resources share price steady after Q1 production update

Regis Resources posts steady September quarter gold production and a strong cash position, with full results coming soon.

Read more »