The Woodside Energy Group Ltd (ASX: WDS) share price has seen enormous gains over the past year, as the below chart shows. We're going to take a look at how much shareholders have increased the value of their holding in the last 12 months.
Thankfully, there is an uneasy ceasefire between the US and Iran (at the time of writing). However, the disruption to the oil and gas markets has been significant and this has led to higher energy prices, increasing the business' profit potential.
Time will tell how long energy prices will be affected, but it could take a long time for global supply to return to its full potential.
Let's see what this has meant for owners of Woodside shares.
Image source: Getty Images
Strong performance by Woodside shares
At the time of writing, Woodside shares have risen by approximately 60% in the last 12 months.
That's an incredible rise, particularly when you consider that the S&P/ASX 200 Index (ASX: XJO) has only risen by roughly 10% over that period.
Past performance is not a reliable indicator of future performance, particularly when it comes to extraordinary circumstances, such as the Middle East disruption to energy markets.
Having said that, it's incredible that Woodside shares have risen around six times more than what the ASX 200 has achieved, not including the dividends.
A $5,000 investment may have risen to approximately $8,000 over this period.
We'll have to see how much earnings the company is able to generate in the coming period.
Management comments
The business very recently held its annual general meeting (AGM), where the leadership gave some interesting commentary about the current situation.
The Woodside Chair Richard Goyder said:
The Middle East conflict and its impacts on economies around the world – including here in Australia – has once again highlighted the critical importance of energy security, affordability and reliability.
Woodside has been, and is, a reliable supplier of energy which Australia and the world now needs more than ever.
In this complex and unpredictable environment, investors are looking for Woodside to build a profitable and resilient business that can deliver consistent, long-term returns.
Growth in demand for renewables is occurring alongside of – not in place of – increased consumption of oil and natural gas, which Woodside expects to remain essential energy sources for decades to come.
Woodside's liquefied natural gas offers Asian economies a reliable and lower-carbon alternative to higher greenhouse gas emitting coal, which still accounts for 90% of the region's power sector emissions.
In a volatile global environment, Australia has an important responsibility to remain a reliable energy supplier to regional trading partners. We also have a significant opportunity to develop new gas reserves that could underpin national energy security and sovereign capability.
Overall, Woodside shares have risen significantly in the last several months. It looks like the business is primed to make solid profits in the years ahead.
