ASX 200
|
A
B
C
D
E
F
G
H
I
J
L
M
N
O
P
Q
R
S
T
U
V
W
X
TO MAKE THE WORLD
SMARTER, HAPPIER, AND RICHER.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Woodside shares have seen a 24.5% increase in the last six months.
Image source: Getty Images
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
The Woodside Energy Group Ltd (ASX: WDS) share price was a strong performer during the first six months of 2022. So, can the company do it again in the next six months?
A lot has happened over the last 12 months for the oil and gas giant. It may not be a surprise that Woodside shares have gone up by around 30% over the past year.
As Australia’s biggest ASX oil and gas share, changes in commodity prices can have sizeable impacts on what happens to a company’s profit and investor sentiment. Energy prices jumped after the Russian invasion of Ukraine.
However, a business can achieve things operationally that can also help.
Let’s look at one of the biggest changes that has happened to the business recently, which will have a significant impact on the following months (and years).
As a result of the merger between Woodside and BHP’s oil and gas business, Woodside is now a top 10 global energy company by hydrocarbon production and the largest listed energy company on the ASX.
Woodside expects the larger, more diversified portfolio to deliver “significant cash flow to help fund committed projects, Woodside’s participation in the energy transition and shareholder returns”.
The ASX oil and gas business has started activities to integrate the two organisations.
Woodside’s CEO Meg O’Neill said that completing this merger was one of the most significant events in the company’s 67-year history:
The merger delivers a diverse portfolio of quality operating assets, plus a suite of growth opportunities across oil, gas and new energy that promises ongoing value for our shareholders.
We believe the completion of the merger will enable Woodside to play a more significant role in the energy transition that is imperative as we respond to climate change while ensuring reliable and affordable supplies of energy to a growing and aspirational global population.
We are focused on unlocking pre-tax annual synergies of more than $400 million as we merge the two businesses.
Those synergies alone could be quite beneficial for the Woodside share price.
Woodside continues to make progress on projects that can help grow profit in the future.
For example, it said that in the first three months of FY22 work on the Scarborough and Pluto Train 2 projects began to ramp up, with Bechtel (the engineering, procurement, construction and commissioning contractor for Pluto Train 2) beginning major civil works.
Manufacture of the Scarborough pipeline has also commenced.
Progressing and completing these projects could be helpful for the Woodside share price over the rest of 2022 and beyond.
A price target is where a broker has estimated a share price will be in 12 months from that date.
UBS recently upgraded its rating on Woodside to a buy, with a price target of $34.25. That implies a possible upside of around 10%.
However, Macquarie is neutral on Woodside with a price target of just $29.25, implying a mid-single-digit decline.
Citi is also neutral on the business, though the price target is $33.40. That suggests a possible mid-single-digit rise.
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
July 12, 2022 | Bernd Struben
Uranium prices hit decade highs in FY22 before retracing in the final months.
Read more »
July 12, 2022 | Tristan Harrison
Does large income alone make this ASX mining share a temping investment target?
Read more »
July 12, 2022 | Zach Bristow
Base metal prices have seen drops in recent months – what does this mean for Rio?
Read more »
July 12, 2022 | James Mickleboro
Where is the BHP dividend going from here?
Read more »
July 12, 2022 | Aaron Teboneras
What’s going on with the lithium producer’s shares on Tuesday?
Read more »
July 11, 2022 | Bernd Struben
Rare earths have been designated as critical elements by the Australian government.
Read more »
July 11, 2022 | Sebastian Bowen
Are BHP shares a buy or a sell for FY2023?
Read more »
July 11, 2022 | Bernd Struben
Platinum is listed as a critical mineral by the Australian government due to its scarcity and importance vehicle manufacturing and…
Read more »
View All
In this FREE STOCK REPORT, Scott Phillips, and his team at Motley Fool’s Share Advisor have released a special free report, detailing 5 ASX stocks that they think could be fantastic stocks to own as investors prepare for their retirement.
Sign Up for Take Stock
Investment news, stock ideas, and more, straight to your inbox.
Get Started Investing
You can do it. Learn about investing with our Investing Education hub.
Win at Retirement
Our latest articles and strategies for the post-work life you want.
Listen to Our Podcast
Hear our experts take on shares, the market & how to invest.
Join Our Premium Community
Join our flagship membership service, Share Advisor.
To make the world Smarter, Happier, And Richer
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show and premium investing services. The Motley Fool launched its Australian presence in 2011, and since then has grown to reach over 1 million Australians.
Read more about us >
This Service provides only general, and not personalised financial advice, and has not taken your personal circumstances into account. The Motley Fool Australia operates under AFSL 400691. For more information please see our Financial Services Guide. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. The Motley Fool Australia does not guarantee the performance of, or returns on any investment.
© 2010 – 2021 The Motley Fool Australia Pty Ltd. All rights reserved.
ACN: 146 988 052
Australian Financial Services Licence (AFSL): 400691
The Motley Fool Australia, PO Box 104, Isle of Capri, Qld 4217
Contact Details:
Phone: (03) 8592 4841
Email: [email protected]
Our friendly customer service team will happily get back to you as soon as they can.
02 8005 6525
info@aktengineering.com.au
Recent Comments