Here's what happened to the Woodside Petroleum (ASX:WPL) share price in the FY22 first quarter

Woodside's stock spent most of the quarter in the red before gaining nearly 24% in the final days of the period.

| More on:

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 performed well over the first quarter of financial year 2022 (FY22) thanks to a last-minute rally.

In fact, the oil and gas producer's share price hit its lowest point of the quarter on 10 September.

So, how did it ultimately boast a 7.5% gain for the 3-month period ended 30 September 2021? Let's take a look.

Two businesspeople walk in opposite directions on a staircase with arrows under their arms, one pointing up and one pointing down.

Image source: Getty Images

Woodside Petroleum share price in FY22's first quarter

The Woodside Petroleum share price started the recent quarter trading at $22.21 and finished it at $23.88.

That's despite it falling 13% between the quarter's start and 10 September.

Even though the company released plenty of news, Woodside's stock spent most of the quarter in the red.

What did Woodside announce in the first quarter?

Over the 3-months just been, Woodside released news of its acquisition of a joint venture, its results for FY21's fourth quarter, and cost estimates for its Scarborough project.

But the biggest news from Woodside for the quarter was released alongside its half-year earnings on 18 August.

Then, Woodside announced its plans to merge with BHP Group Ltd's (ASX: BHP) petroleum division. The merger will see Woodside's value surging to around $35 billion.

The company also permanently instated its acting CEO, Meg O'Neill, as its leader and announced a return to profit.

Woodside posted $317 million of net profit after tax and a 14% increase to its dividend for the half year ended 30 June 2021.

Despite all the seemingly good news, the Woodside share price fell 2% on 18 August.

What else drove Woodside's stock last quarter?

The Woodside share price struggled over much of the quarter just been before gaining 23.9% in its last 10 days. The rollercoaster may have been instigated by turbulent oil prices.

The first quarter of FY22 was a big one for oil prices.

It started with the Organization of the Petroleum Exporting Countries and Russia (OPEC+) disagreeing on supply levels.

While the squabbles drove oil prices downwards, the disagreement didn't last long.

The OPEC+ soon decided to increase production by 400,000 barrels a day each month from August, eventually bolstering oil supply back to pre-pandemic levels.

However, Hurricane Ida hit the Gulf of Mexico in late August and early September, devastating the region's oil production and boosting the price of oil once more.

Come the end of the quarter, oil prices were surging to multiyear highs and the Woodside share price was surging alongside them.

Motley Fool contributor Brooke Cooper has no position 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 graphic depicting a businessman in a business suit standing with his hand to his chin looking at a large red arrow pointing upwards above a line up of oil barrels againist the backdrop of a world map.
Broker Notes

Are Santos shares a buy following their half-year results?

Broker UBS has delivered its verdict on this oil and gas giant.

Read more »

Gas share price represented by a rising share price chart.
Energy Shares

Macquarie tips this ASX gas company to jump more than 50%

Everything's lining up well for this gas producer.

Read more »

Stacks of Australian dollar currency banknotes.
Dividend Investing

Up 40%! Are Woodside shares still a good buy for passive income now?

After soaring 40% this year, are Woodside’s fully-franked dividends still a good passive income investment?

Read more »

Young mother with baby boy at the petrol station refuelling the car.
Energy Shares

Up 41%: How much higher can Woodside shares go?

Woodside shares are trading in the green again on Wednesday morning.

Read more »

Oil worker using a smartphone in front of an oil rig.
Earnings Results

Santos posts lower first-half profit as new LNG projects ramp up

The energy giant has cut its interim dividend to 11.6 US cents per share (unfranked).

Read more »

Copal miner standing in front of coal.
Earnings Results

Whitehaven Coal FY26 earnings: profit dips but cost control and dividend highlight result

The coal miner's revenue and profits fell in FY 2026.

Read more »

Lakes in the form of footsteps among the green trees, indicating steps towards a healthier planet.
Energy Shares

Mercury NZ: FY26 earnings rise on renewable rollouts

Mercury NZ lifts net profit and dividend on the back of new renewable generation projects and disciplined investment.

Read more »

Smiling oil worker in front of a pumpjack.
Energy Shares

Strike Energy upgrades Walyering gas reserves and books maiden Walyering West discovery

Strike Energy has reported upgraded gas reserves and new discoveries at Walyering and Walyering West.

Read more »