Only another 15% rise to go and I get to break even, after...

Only another 15% rise to go and I get to break even, after holding since the T/O rumours started by Charlie Aitken......Tell me I'm dreamin'....


From The Australian today :

Shell selldown likely as Woodside increases dividend payout by: Paul Garvey From: The Australian April 24, 2013

WOODSIDE Petroleum has bowed to shareholder pressure and reinvented itself as a high-yield investment proposition, in a move that could pave the way for a selldown of Royal Dutch Shell's major stake in the company.
Less than two weeks after announcing it would walk away from plans for a $45 billion-plus liquefied natural gas plant at James Price Point in northern Western Australia, Woodside yesterday announced it would pay a special dividend and dramatically increase its dividend payout ratio.

Woodside will return about $US500 million ($488m) to shareholders through a US63c-per-share fully franked special dividend. The company also said it would lift its dividend payout ratio from 50 per cent of underlying earnings to 80 per cent "for several years".

Despite immediate warnings from at least one analyst that the dividend policy was "totally unsustainable", Woodside chairman Michael Chaney said strong cashflows and the long lead times associated with its growth projects meant the increase in dividends was appropriate.

"These initiatives reflect the board's commitment to disciplined capital management and desire to distribute additional franking credits to our shareholders," Mr Chaney said.

"At the same time we shall continue to pursue growth opportunities where we believe they will create value for shareholders."

The move was welcomed by the market, which drove Woodside shares as much as $3.57 higher. The stock ended the day $3.36, or 9.7 per cent, higher at $37.96.

Woodside's investment in building the Pluto LNG project has not only seen an increase in the company's earnings, but has also left the company with about $US3bn in franking credits.

Macquarie analyst Adrian Wood noted that the franking credits could help inspire a selldown of some or all of Shell's remaining 23.6 per cent stake in Woodside.

"With the Woodside share price now supported by a fully franked dividend that is worth more to local investors than to Shell, there is perhaps the heightened possibility of Shell looking to sell into any significant share price strength on the back of this announcement," Mr Wood said. Investors praised the move, with Shannon Rivkin from Rivkin Securities saying that the orientation towards yield was "a far more appropriate mentality in a difficult environment" for large-scale, high-cost LNG projects.

"With a cost environment making a lot of these developments a much more questionable commercial decision, Woodside is doing the responsible thing by rewarding shareholders rather than commit to these iffy growth options," Mr Rivkin said.

He said the focus on yield could have implications for the rest of the resources sector, with BHP Billiton and Rio Tinto in a position to do something similar. "In an environment of low interest rates, there is little doubt yield is being rewarded by the stockmarket, so I expect this is something more resources companies are going to have to consider," he said.

While the news was well received by the market, analysts warned that Woodside could have problems in the future.

Macquarie's Mr Wood said such a high payout ratio was "totally unsustainable" and that the company appeared to have been "bullied" into the move.

He noted that the 80 per cent payout ratio was considerably higher than that of the giants of the oil and gas sector.

He also warned that Woodside was effectively paying the dividends out of debt.
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Cheers,
Stevo
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