some "what if" analyses

Pie in the sky or a whiff of things to come?


"..... Some indicative-only analysis by the broker suggested a $US60 a barrel average oil price in 2005 would see Woodside generate earnings per share (EPS) of $1.51 and pay out a dividend of 83 ¢, a yield of 4.3 per cent cent on yesterday's market price. At $US80 a barrel, EPS would become $1.99 and the dividend payout $1.10, a yield of 5.7 per cent per cent.

Because of its planned production increases, Woodside would generate EPS of $2.21 in 2006 and pay a dividend of $1.22 a share given $US60 a barrel oil, a yield of 6.3 per cent. With oil at $US80, EPS would be $3 and the dividend $1.65 a share, a yield of 8.5 per cent.

Investors in oil stocks would think all their Christmases had come at once ...."

(From Barry Fitzgerald... "The Age" 23/10/o4)