Rising crude oil prices push Woodside (ASX:WPL) shares up on ASX

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Highlights

  • Shares of ASX listed energy firm, Woodside, closed in the green territory today.
  • The scrip has gained 48% in the last three months. 
  • WPL has delivered its strongest underlying NPAT of US$1,620 million since 2014. 

Shares of energy firm, Woodside Petroleum Ltd (ASX:WPL), closed 2.770% higher at AU$33.195 per share today. 

 

The scrip has hit its all-time high at AU$34.41 per share on 7 March in the last three months. It has gained around 1% in last five trading days.

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The stock has constantly been rising since the last 12 months delivering over 33% return to its shareholders. 

The rise in Energy Index

Meanwhile, it is worth noticing that the ASX 200 Energy index also ended in the green, closing 2.31% higher at 10,076.70 points today. On Tuesday, WPL shares closed in green at AU$32.16 apiece, up 1.6%, while the ASX 200 Energy Index closed at 9,842.20, up 1.69%.

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As per the analysts, the rise in WPL’s share price is likely linked with the hike in crude oil prices. 

Moreover, in WPL’s full-year FY21 results, the company stated that a significant increase in oil and gas prices coupled with increased trading activity supported the company in achieving a healthy average portfolio realised cost of US$60.3 per barrel of oil equivalent. 

Related read - Woodside (ASX:WPL) shares gain as Russia-Ukraine war intensifies

Financial performance 

Woodside has achieved strong operational performance delivering its highest profit since 2014 while maintaining a solid balance sheet. This might be the reason why investors are keeping the stock on their radar.

As per WPL’s latest financial results, the company reported a full-year net profit after tax of US$1,983 million, up 149% from the prior year.  

The operating cash flow for the year stood at US$3,792 million, and the company ended the period with a liquidity of US$6,125 million. 

Related Read: Woodside (ASX:WPL) shares end in red as fuel prices plummet

Revenue from the ordinary activities jumped 93% in FY2020 to US$6,962 million. 

Apart from this, WPL’s full-year dividend increased by 255% from the previous year to 135 US cents.

Return on equity also improved by 144% at 14.8% while the return on average capital employed saw an increase of 174% at 15.6% for the year.

WPL share price movement 

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The company has delivered good stock price performance over the last 12 months, gaining 33.03%. WPL shares have delivered 42% return to its shareholders on YTD this year and have gained 48% in the previous three months. 

What’s next?

With substantial financial results and healthy share price performance, WPL has set its FY22 investment expenditure guidance between US$3,800 to US$4,200 million. Further, the company will also increase the expenditure on Scarborough and Pluto Train 2. 


 


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