Woodside share price edges lower on half year results

The Woodside share price edged lower today after the company released its results for the first half of 2020. We take a look at the results.

| More on:
oil can falling over and spilling coins signifying fall in oil share prices

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 Petroleum Limited (ASX: WPL) share price is down 0.49% after the company released its half year report to 30 June, 2020. At the time of writing, the Woodside share price is trading at $20.41. 

What was in the announcement?

Woodside had operating revenue of US$1.91 billion in the first half of 2020. This was down from operating revenue of US$2.26 billion in the first half of 2019. The company produced 50.1 million barrels of oil in the first half of 2020.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was US-$4.3 billion in the first half of 2020, this compared to positive EBITDA of US$1.46 billion in the first half of 2019.

Net profit after tax was US-$4.07 billion in the first half of 2020 compared to a positive net profit after tax of US$419 million in the first half of 2019.

Underlying net profit after tax, which excluded asset impairments and provisions for a loss generating contract, was US$303 million in the first half of 2020, compared to US$419 million in the first half of 2019.

Earnings per share for the first half of 2020 was US-$4.30 compared to 44.8 US cents in the first half of 2019.

The company declared an interim dividend of 26 US cents per share, representing 80% of underlying net profit after tax.

Woodside CEO, Peter Coleman, commented on the results, stating;

"I would rate the external conditions created by the COVID-19 pandemic and oversupply in global oil and gas markets as the most difficult I've seen in nearly four decades in the industry."

Woodside began 2020 in a strong financial position, built over the previous two years as we prepared for a period of increased capital spending. This position has been consolidated through the first half thanks to the strong performance of our high-reliability, low-cost operations.

Our balance sheet strength and disciplined approach to capital management ensures we can deliver appropriate returns to shareholders. It also allows us to progress our existing strategic growth plans, and provides optionality to pursue the right external opportunities, should they arise.

Woodside's operational performance during the first half was nothing short of outstanding. In February, we successfully weathered Tropical Cyclone Damien – the most severe storm ever to pass over our Western Australian facilities – with very limited impact on production.

In the immediate wake of Damien, we faced the emerging challenge of COVID-19, requiring us to take swift and decisive action to protect our workforce, communities and operations, and ensure safe and secure gas supplies to customers in Western Australia and overseas.

The record production achieved in the half is a credit to our people's ongoing commitment to sustained operational excellence, helping Woodside deliver underlying net profit after tax of $303 million, despite the challenging market conditions."

About the Woodside share price

Woodside is a petroleum exploration and production company and is Australia's largest oil and gas producer. Woodside has assets in Australia and abroad, with its countries of operation including Senegal, Myanmar, Timor-Leste and Canada.

The Woodside share price is up 36.7% since its 52-week low of $14.93, however, it has fallen 40.79% since the beginning of the year. The Woodside share price is down 38.23% since this time last year.

Motley Fool contributor Chris Chitty 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 Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »