ASX:WPL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Woodside Petroleum

Executive Summary

Woodside Petroleum Ltd engages in the exploration, evaluation, development, production, marketing, and sale of hydrocarbons in Oceania, Asia, Canada, Africa, and internationally.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Woodside Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WPL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

WPL

5.2%

AU Oil and Gas

3.8%

AU Market


1 Year Return

-35.5%

WPL

-31.3%

AU Oil and Gas

-10.6%

AU Market

Return vs Industry: WPL underperformed the Australian Oil and Gas industry which returned -31.3% over the past year.

Return vs Market: WPL underperformed the Australian Market which returned -10.6% over the past year.


Shareholder returns

WPLIndustryMarket
7 Day1.9%5.2%3.8%
30 Day16.4%17.6%9.9%
90 Day-17.4%-20.3%-13.0%
1 Year-32.8%-35.5%-28.3%-31.3%-6.9%-10.6%
3 Year-16.2%-28.1%-16.8%-26.5%12.7%-2.1%
5 Year-16.5%-34.4%-26.0%-39.6%27.9%0.4%

Price Volatility Vs. Market

How volatile is Woodside Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Woodside Petroleum undervalued compared to its fair value and its price relative to the market?

41.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WPL (A$23.07) is trading above our estimate of fair value (A$7.28)

Significantly Below Fair Value: WPL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WPL is poor value based on its PE Ratio (41.4x) compared to the Oil and Gas industry average (7.2x).

PE vs Market: WPL is poor value based on its PE Ratio (41.4x) compared to the Australian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: WPL is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: WPL is good value based on its PB Ratio (0.9x) compared to the AU Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Woodside Petroleum forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

20.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPL's forecast earnings growth (20.2% per year) is above the savings rate (2.3%).

Earnings vs Market: WPL's earnings (20.2% per year) are forecast to grow faster than the Australian market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WPL's revenue (0.4% per year) is forecast to grow slower than the Australian market (4.5% per year).

High Growth Revenue: WPL's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WPL's Return on Equity is forecast to be low in 3 years time (3.9%).


Next Steps

Past Performance

How has Woodside Petroleum performed over the past 5 years?

-6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPL has high quality earnings.

Growing Profit Margin: WPL's current net profit margins (7%) are lower than last year (26%).


Past Earnings Growth Analysis

Earnings Trend: WPL's earnings have declined by -6.9% per year over the past 5 years.

Accelerating Growth: WPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WPL had negative earnings growth (-74.9%) over the past year, making it difficult to compare to the Oil and Gas industry average (-16%).


Return on Equity

High ROE: WPL's Return on Equity (2.2%) is considered low.


Next Steps

Financial Health

How is Woodside Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: WPL's short term assets ($4.6B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: WPL's short term assets ($4.6B) do not cover its long term liabilities ($10.8B).


Debt to Equity History and Analysis

Debt Level: WPL's debt to equity ratio (32.6%) is considered satisfactory.

Reducing Debt: WPL's debt to equity ratio has increased from 15.6% to 32.6% over the past 5 years.

Debt Coverage: WPL's debt is well covered by operating cash flow (58.2%).

Interest Coverage: WPL's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Woodside Petroleum's current dividend yield, its reliability and sustainability?

5.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WPL's dividend (5.99%) is higher than the bottom 25% of dividend payers in the Australian market (2.68%).

High Dividend: WPL's dividend (5.99%) is low compared to the top 25% of dividend payers in the Australian market (6.6%).


Stability and Growth of Payments

Stable Dividend: WPL's dividend payments have been volatile in the past 10 years.

Growing Dividend: WPL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (248.3%), WPL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WPL's dividends in 3 years are forecast to be covered by earnings (72.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Peter Coleman (59yo)

9yrs

Tenure

US$5,174,268

Compensation

Mr. Peter John Coleman, BEng, MBA, FTSE, serves as the Chief Executive Officer and Managing Director of Woodside Energy Ltd. Mr. Coleman has been the Chief Executive Officer and Managing Director of Woodsi ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD5.17M) is above average for companies of similar size in the Australian market ($USD3.91M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Peter Coleman
CEO, MD & Executive Director9yrsUS$5.17m0.082% $18.4m
Sherry Duhe
Executive VP & CFOno dataUS$1.36m0.0032% $730.4k
Shaun Gregory
Executive VP of Sustainability & CTO4.33yrsUS$1.21m0.0048% $1.1m
Reinhardt Matisons
Executive Vice President of Marketing6.33yrsUS$971.44k0.0059% $1.3m
Michael Abbott
Senior Vice President of Corporate & Legal5.42yrsUS$910.46k0.0040% $899.0k
Robert Edwardes
Executive Vice President of Development8yrsUS$1.97m0.012% $2.6m
Meg O'Neill
Executive Vice President of Development0.58yrUS$2.60m0.017% $3.8m
Andrew Cox
VP of Legal2.92yrsno datano data
Jacky Connolly
Vice President of People & Global Capabilityno datano datano data
Fiona Hick
Acting Executive Vice President of Operations0.67yrno datano data

4.9yrs

Average Tenure

Experienced Management: WPL's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Peter Coleman
CEO, MD & Executive Director9yrsUS$5.17m0.082% $18.4m
Gene Tilbrook
Director5.42yrsUS$227.55k0.00083% $186.5k
Richard James Goyder
Independent Chairman of the Board2.08yrsUS$558.18k0.0025% $557.4k
Frank Cooper
Independent Non-Executive Director7.25yrsUS$236.06k0.0011% $245.0k
Ann Pickard
Independent Non-Executive Director4.25yrsUS$258.68k0.00081% $182.0k
Sarah Ryan
Independent Non-Executive Director7.42yrsUS$212.81k0.00097% $218.0k
Lawrence Archibald
Independent Non-Executive Director3.25yrsUS$243.26k0.00063% $141.6k
Christopher Haynes
Independent Non-Executive Director8.92yrsUS$250.87k0.0012% $274.2k
Swee Chen Goh
Independent Non-Executive Director0.33yrno data0.000060% $13.5k
Ian MacFarlane
Independent Non-Executive Director3.5yrsUS$210.20k0.00055% $123.6k

4.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: WPL's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WPL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Woodside Petroleum Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Woodside Petroleum Ltd
  • Ticker: WPL
  • Exchange: ASX
  • Founded: 1954
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$22.475b
  • Shares outstanding: 954.36m
  • Website: https://www.woodside.com.au

Number of Employees


Location

  • Woodside Petroleum Ltd
  • Mia Yellagonga
  • 11 Mount Street
  • Perth
  • Western Australia
  • 6000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WOPE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 1975
WOPDB (Deutsche Boerse AG)SPONSORED ADRDEEURJan 1975
WOPADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1979
WPLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 1979
WOPE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1979
WPLSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJun 1979
WPLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 1979

Biography

Woodside Petroleum Ltd engages in the exploration, evaluation, development, production, marketing, and sale of hydrocarbons in Oceania, Asia, Canada, Africa, and internationally. The company produces liquefied natural gas, pipeline natural gas, condensate, liquefied petroleum gas, and crude oil. It holds interests in the Greater Browse, Greater Sunrise, Greater Pluto, Greater Exmouth, North West Shelf, Wheatstone, Canada, Senegal, Greater Scarborough, and Myanmar projects. The company was founded in 1954 and is headquartered in Perth, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 10:37
End of Day Share Price2020/05/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.