Australia’s Woodside Energy Ltd stated that it posted a 14% increase in net profit in the first half because oil prices have declined and its profit and dividend were well above the market predictions leading to a 4 % rise in its share prices on Tuesday. The company has also delivered an underlying net profit after tax of 1 USD. 63 billion for the current quarter ending June 30 and also the consensus estimate from Visible Alpha of one billion dollars. 38 billion.

However, the decline in profit was mainly due to the average realized oil price which declined from $74 per BOE to $63, and the overall operating cost which increased from $11. 00 per BOE to $ 12. 80 was also well received by the market along with their better-than-expected dividend at 69 US cents per share as compared to 80 US cents per share in the last year. The dividend payout which is under the forecast range of 50-80% of the underlying net profit was at the upper end of 80% and much higher than the market expectations of 55 cents.

Woodside oil and gas firm’s Chief Executive Officer, Meg O’Neill noted that there is robust demand for the company’s planned offer of equity stake in the Driftwood LNG export project. This stake Woodside is expected to acquire plug into its $1. The deal is worth US$2 billion acquisition of the LNG developer, Tellurian incorporates debt. O’Neill also mentioned that there are prospective buyers that are in upstream gas and utilities seeking long-term supply, offtake, or in specific only in the infrastructure part of the plant.

Woodside targets a market-clearing equity sale pre-FID for Driftwood, and heavy lifting for marketing the development is likely in the first quarter of 2025. The positive market reaction is due to investors’ optimism about the strategic directions of Woodside Petroleum and its dividend policy in the light of crude oil prices.