Shareholders have again been rewarded by Woodside Petroleum (WPL) after the oil and gas group reported its second highest full year result ever and its highest based on earnings from continuing operations.
But despite the apparently weaker result, the company has lifted final payout to shareholders by 58% to $US1.03, from the 65 US cents paid for the final half of 2012.
The weaker Australian dollar will boost the value of that US dollar dividend to more than $A1.10. The final conversion rate will be set on February 28, according to the company.
That took total dividend for 2013 to a record $US2.49 a share – an increase of 92%.
The higher payouts follows the company’s earlier decision to lift the payout ratio and return more money to shareholders instead of spending heavily on exploration that might not payoff, or hoarding cash for the next big project.
The company joins other resources groups, such as BHP Billiton and Rio Tinto in boosting payouts to shareholders despite taxing times from weak markets or low prices.
WPL 1Y – Woodside pays record dividend
Oil and gas has been different though with solid demand in Asia, especially from Japan, keeping LNG prices high, while world oil prices have traded from around $US90 a barrel to as much as $US115 a barrel in the past year, depending on which market is looked and crude oil type used for the measurement.
The company reported this morning that net profit came in at $US1.75 billion for the year to December, 2013, thanks to tight cost contriols and a cut in investment and exploration spending.
That was down 41% from the 2012 result and in line with market forecasts. But the year before figure was boosted by the sale of a stake in the Browse LNG project in WA.
Sales for 2013 fell 6.6% to $US5.93 billion, despite a 2.5% improvement in annual production to a record 87 million barrels of oil equivalent.
Chief executive Peter Coleman said in this morning’s profit statement that the results showed Woodside’s strong operating cash flow and commitment to capital management and tight cost controls.
Woodside restated its 2014 production target of 86 million-93 million boe.
Woodside also managed to slash net debt 20% to $US1.5 billion in 2013, as well as boosting dividends to record levels.
Mr Coleman said Woodside had generated $US5.9 billion in free cash flow in the past two years, including more than $US2.7 billion last year.
That extra cash had been used to lift dividends, slash debt ands finance the company’s reduced exploration and investment programs. For example the 2013 investment spend fell 52% to $US851 million, according to the company’s report this morning.
WPL Full Year Results Briefing
