Woodside (ASX:WPL) share price slides 3% this week. Here's why

Shares in Australia's largest oil and gas producer have not had a great week. Let's take a look at what's been happening at Woodside.

| More on:
sad looking petroleum worker standing next to oil drill

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

It hasn't been the best week for the Woodside Petroleum Limited (ASX: WPL) share price.

By Friday's close, the Woodside share price was 2.90% lower for the week at $22.76. It also lost 0.91% in today's trade.

The big news out of the ASX 200 energy giant this week was its quarterly report, released yesterday morning.

Production down 4% this quarter

The Woodside share price lost almost 1% yesterday after the company released its second-quarter update for the 3 months ending June 2021.

At one point during intraday trading, Woodside shares were down almost 2% before partially recovering by the close of Thursday's session.

This also came following a slide in oil prices the night prior.

In its update, Woodside reported it had realised additional revenue on the back of hot markets in oil and liquefied natural gas, with both of these commodities fetching a premium.

The company highlighted that this propped up second-quarter revenue by 15%, recognising ~$1.72 billion in the 3 months to June.

Despite the gain, Woodside reported a 4% decline in production of 27 million barrels of oil equivalent (MMboe) from the previous quarter.

In the report, Woodside acting chief executive Meg O'Neill said:

Revenue from oil sales during the period was higher than the first quarter supported by an above-market average realised price of $75/barrel, while revenue from LNG sales climbed 14%.

Recent acquisition success

This week's downward pressure on the Woodside share price came despite some positive news released by the company just last week.

On 7 July, Woodside announced it had completed the acquisition of "the entire participating interest of FAR Senegal".

The arrangement saw the company claim operations at the Rufisque Offshore, Sangormar Offshore and Sangomar Deep Offshore joint venture.

The company completed the transaction at a US$45 million valuation, in addition to certain adjustments to the tune of $167 million.

Despite the seemingly upbeat news, the Woodside share price slipped 1.87% into the red on the day of the announcement.

Woodside share price snapshot

The Woodside Petroleum share price has had a choppy year to date. It is down 1.34% since the start of January.

Over 12 months, it has gained 10.27%.

This lags the S&P/ASX 200 Index (ASX: XJO), which is up 9.93% since the start of January and 21.79% over the past 12 months.

Woodside has a market capitalisation of around $22 billion.

The author Zach Bristow has no positions 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 Bruce Jackson.

More on Energy Shares

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Energy Shares

Why is the Beach Energy share price racing higher on Thursday?

This energy producer delivered some big news this afternoon.

Read more »

A person is weighed down by a huge stack of coins, they have received a big dividend payout.
Energy Shares

Own Ampol shares? Get ready for your monster dividend payment

Ampol investors are about to enjoy their largest-ever dividend.

Read more »

A man sees some good news on his phone and gives a little cheer.
Energy Shares

Buy Woodside shares for a 20% gain and 4.5% dividend yield

Morgans thinks investors could get big returns from this energy giant.

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

A 36% yield from this ASX dividend share? Here's how these forward-looking investors made it happen

Some savvy passive income investors are earning a 36% yield from this ASX dividend star.

Read more »

A Paladin Energy miner wearing a hard hat and protective gear stands in front of a large mining truck and smiles to the camera.
Energy Shares

Uranium is set to boom, and this is the 'premium' ASX stock to buy

Shaw and Partners' Jed Richards reckons these are the shares to buy for the nuclear energy theme.

Read more »

Happy coal miner.
Energy Shares

How these ASX 200 energy shares could unexpectedly burn brighter

ASX 200 energy shares are facing rising global demand for their products.

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

ASX energy shares losing charge amid fresh warnings of gas supply shortfalls

Many energy commodity prices fell overnight and this is hitting ASX energy shares today.

Read more »

A miner stands in front oh an excavator at a mine site
Energy Shares

'We have reached a bottom': 5 ASX uranium shares leaping higher this week

ASX uranium stocks have enjoyed explosive share price growth over the past year.

Read more »