The Woodside (ASX:WPL) share price dropped 12% in August. What’s next?

What lies ahead for the Aussie energy giant after a disappointing August?
The post The Woodside (ASX:WPL) share price dropped 12% in August. What’s next? appeared first on The Motley Fool Australia. –

The Woodside Petroleum Limited (ASX: WPL) share price climbed 1.28% on Wednesday to $19.74, as it put a disappointing month to bed.

Shares in the Aussie energy giant slumped 12% over August in a busy month for the company.

So, what’s driving the Aussie petroleum share price right now and what lies ahead in 2021 and beyond?

Why the Woodside share price fell 12% in August

Woodside closed at $19.49 per share on Tuesday — 11.97% lower compared to its closing price on Monday 2 August.

The biggest slide came on either side of the group’s 2021 half-year (1H 21) results released on 18 August.

Woodside reported a $317 million net profit after tax following a 31.3% jump in operating revenue to $2.5 billion.

Investors will receive an interim dividend of US 30 cents per share after Woodside generated US$311 million in free cash flow.

The Woodside share price was volatile in August but ultimately closed the month down 12%.

Underlying the half-year result was the merger speculation with BHP Group Ltd (ASX: BHP)’s petroleum division.

That speculation was proved to be true as Woodside and BHP unveiled a plan to create a top 10 independent, global energy company. The merged entity will focus on creating a high margin oil portfolio alongside long-life, high-quality liquid natural gas (LNG) assets.

What’s next for Woodside?

The merger plan looks set to dominate Woodside’s plans in the near term. Existing Woodside shareholders are set to hold a 52% stake in the merged business with 48% held by BHP shareholders.

The Woodside share price remains down 14.4% in 2021 after a busy August earnings season.

Rising oil prices helped boost the energy giant’s shares on Wednesday, and investors will be hoping that continues for the rest of FY21.

The Aussie energy giant has commenced the sell-down of its Pluto Train 2 development and is approaching a final investment decision on its Scarborough development.

Woodside also stands to benefit from higher demand for energy as Australia and the world turns their attention to reopening and moving past tight COVID-19 restrictions in 2021 and 2022.

The post The Woodside (ASX:WPL) share price dropped 12% in August. What’s next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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