Woodside Expects Positive Progress on US LNG Stake Sale, Jarden Research Says
Woodside Energy's 2024 results were negative and fell short of market expectations, despite positive changes to reserves at projects like Sangomar, Pluto, and North West Shelf, according to a Monday note by Jarden Research.
The company's depreciation, depletion, and amortization guidance of $4.4 billion to $4.6 billion exceeded Jarden's estimate of $4.32 billion.
Jarden notes that this increase was offset by stronger-than-expected net finance costs and petroleum resource rent tax.
However, WDS' ''other expenses" forecast between $1.7 billion to $1.9 billion was higher than Jarden's estimate of $1.5 billion, due to unrealized mark-to-market losses on the company's gas hedging position.
Jarden believes that this increase resulted in a 10% reduction of its 2024 earnings per share estimate for WDS.
The research firm expects positive developments, particularly from Woodside's stake sale in the Louisiana LNG project, a key catalyst for its share price.
Jarden maintained WDS' overweight rating but lowered its price target to AU$26.60 from AU$26.90.
WDS Price at posting:
$23.03 Sentiment: Buy Disclosure: Held
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