Woodside Petroleum Share Price Drops

This morning Woodside Petroleum Ltd’s [ASX:WPL] shares dipped by 0.28%.

They have been dropping since January as their shares were trading for $33.79 and are now valued at $28.78 a share.

Despite their consistent share drops, they have maintained a positive profit margin of 26.20% and operating margin of 40.43%

With a market cap of $25.913 billion, Woodside Petroleum is an independent oil and gas company who specialise in exploration, development and the many other factors of hydrocarbons.

Woodside pushes for further control

Last month Woodside agreed to purchase a 50% interest in the Scarborough gas field off WA.

Woodside are hoping their stake will enable them to control 75% of a permit which will contain the majority of the Scarborough gas field.

The deal is set to be complete by the end of the month.

With this purchase, Woodside’s bid to pipe gas from the field to its liquefied gas plants have been strengthened.

WAtoday reported that CEO Peter Coleman stated:

The development concept involves maximizing existing infrastructure at the Pluto LNG plant to meet a market gap we expect will emerge from the early 2020s.

Woodside expects to become the operator of the Pluto plant after fully completing the purchase of the stake.

Further announcements

In their 2018 annual report, Woodside stated that they generated $832 million free cash flow which is a $718 million increase from 2016.

They have invested $1.56 billion in capital and exploration expenditure.

Woodside invested about 70% of their capital expenditure into the Wheatstone project and other ventures.

By 2021 they hope to achieve new revenue streams, lower capital intensity developments, and implement an overall market expansion.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

PS: Believe it or not, there are ways to increase your retirement pot. Check out Money Morning Matt Hibbard’s free report, ‘Five Things You Could Do In The Next 30 Days To Boost Your Retirement Pot’, outlines detailed fundamentals on retirement matters.


Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

To find out more about the publications Ryan works on and how you can subscribe, please click on the corresponding link here:


Money Morning Australia