市场见解

Woodside (ASX:WPL) confirms BHP oil and gas merger

Investors contemplate whether Woodside has bitten off more than it can chew…
The post Woodside (ASX:WPL) confirms BHP oil and gas merger appeared first on The Motley Fool Australia. –

Investors don’t seem too enthusiastic about the 能源 - 伍塞德石油 (ASX: WPL) share price on Wednesday. Shares in the Australian oil and gas giant are trading 1.3% lower to $20.46 following the release of its FY21 results and merger confirmation.

Weighing on the Woodside share price

There had been plenty of speculation, but yesterday Woodside confirmed the rumours of a merger with the petroleum division of BHP Group Ltd (ASX: BHP). Adding to the information for investors to process today, Woodside also reported its FY21 results.

Indeed, today likely marks one of the most significant days in Woodside’s 67-year history. As such, the market is grappling with how the future might look for a ~$35 billion oil and gas, megalodon of a company.

The deal is an all-stock merger, creating a top 10 independent energy company by production in the process. According to Woodside, once complete the merged company will have a high margin oil portfolio. This is in addition to long-life LNG assets and the financial wherewithal to meet global energy needs. Despite this, the Woodside share price is in the negative today.

In a move that has been carefully orchestrated by Meg O’Neill, Woodside shareholders have a few things to be happy about. The previously appointed acting, now permanent, Chief Executive Officer O’Neill drove home a deal that is expected to deliver cost synergies north of US$400 million per annum. This will be through leveraging combined capabilities and capital efficiency.

Furthermore, in an industry that environmentalists have nominated for the chopping block, the merger might give Woodside a bit more longevity. A prime example is the company’s Scarborough project, which contains almost no carbon dioxide. Post-merger, Woodside and BHP’s joint venture in the project will fall under the one umbrella — unlocking further progress.

Results make for a difficult read

While the merger is one variable in the mix, Woodside’s FY21 half-year results add another to the share price equation. The result itself seemed relatively positive, although the market might have expected more.

According to Commsec, consensus estimates were for US$489 million — or approximately AUD$673 million. However, the actual net profit after tax came in at US$354 million. In contrast, the company reported a $4 billion loss in the prior corresponding period.

There’s certainly plenty for Woodside shareholders to consider, and perhaps the share price reflects that today. One final tidbit of information — the Woodside share price has gained 0.8% over the past 12 months.

The post Woodside (ASX:WPL) confirms BHP oil and gas merger appeared first on The Motley Fool Australia.

Should you invest $1,000 in Woodside Petroleum right now?

Before you consider Woodside Petroleum, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside Petroleum wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Woodside (ASX:WPL) share price slides 3% following FY21 half-year results
Woodside (ASX:WPL) announces new leader
5 things to watch on the ASX 200 on Wednesday

Woodside (ASX:WPL) share price slides as key investor slams BHP deal
5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Mitchell Lawler 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.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!