All eyes will be on Woodside Energy Group Ltd (ASX: WDS) shares next week when the energy giant releases its half-year results.
Ahead of the release of its results on Tuesday 22 August, let's have a look and see what we should be expecting from the company.
Woodside half-year results preview
Woodside has already provided investors with an idea of what to expect from its half-year results.
Last month, the company released its second-quarter update and revealed that it will post a sizeable increase in revenue for the six months thanks to the merger with the petroleum assets of BHP Group Ltd (ASX: BHP).
Woodside expects to report first-half revenue of US$7,414 million for the half, which is up 27.6% from US$5,810 million during the prior corresponding period.
No earnings guidance has been provided for the half. However, in FY 2022, Woodside commanded an earnings before interest, tax, depreciation, and amortisation (EBITDA) margin of 66.7%.
If it has managed to keep its margin steady, then this would mean an EBITDA of US$4,967.4 million for the half.
What else should you look out for?
The team at Morgans has suggested that investors keep an eye on the Woodside dividend. Or the Woodside payout ratio to be more precise. It explains:
Dividend discipline. WDS has flagged consistently that it would bring back its payout ratio towards its "50%+" policy if cash flow were to moderate (vs the more recent average of an 80% payout). We are interested to see if this proves accurate, or if WDS sides with sustaining its dividend using external capital.
Are Woodside shares a buy ahead of its results?
Morgans is sitting on the fence with the company right now.
Going into the results, its analysts have a hold rating and a $33.60 price target on Woodside's shares.
Though, it is worth noting that this implies a meaningful (~13%) downside from current levels despite being a hold rating.
