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%
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.
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.
For Money Morning
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