Australian earnings preview Woodside

Full-year earnings preview:

Woodside Petroleum Limited (WPL) is an Australian petroleum exploration company and production company. It is the largest operator of oil and gas production in Australia and Australia’s largest independent dedicated oil and gas company. It reports its half-year numbers on the 13^th of August.

The impact of the coronavirus has ravaged oil demand and prices globally with crude oil futures (WTI) entering negative prices for the first time in history earlier this year. Woodside recently revealed $US4.37 billion (AU$6.3 billion) in write-downs and charges that have left no part of its business unscathed, with impairments on all its Western Australian oil and gas assets, liquefied natural gas (LNG) plants and exploration licenses.

However, WPL has a strong balance sheet, including approximately $7.5B of available liquidity and this has seen a muted response from credit rating agencies compared to their leveraged global competitors; As a guide, “S&P” has WPL on credit watch negative while “Fitch Ratings” has stated that there will be no immediate effect to its WPL rating.

Woodside’s consensus statutory EPS estimates are 55 cents per share and it is expected to pay a dividend of 129 cents per share.

Technically, the Woodside share price has been capped in recent weeks by resistance near $22.50 and has been well supported near $19.80. A sustained break above $22.50 may enable the share price to retest the June $24.75 high and possibly fill the gap from the March breakdown at $26.38. 

Source Tradingview. The figures stated areas of the 3rd of August 2020. Past performance is not a reliable indicator of future performance.  This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation