Woodside share price falls as the ASX 200 giant targets 4% annual growth

The Woodside Energy Group Ltd (ASX: WDS) share price is sliding on Thursday despite the company tipping 4% annual growth to 2027.

The energy giant outlined its future plans in an investor briefing released to the market this morning.

The Woodside share price opened 1.58% lower at $36.70 on the back of the update. It continued tumbling to a low of $36.20 – marking a 2.9% tumble.

Things have since improved slightly for the stock. It’s currently trading at $36.63, 1.77% lower than its previous close.

So, what else did the S&P/ASX 200 Index (ASX: XJO) energy giant reveal this morning? Let’s take a look.

Woodside share price falls on future-focused briefing

The Woodside share price is in the red today despite the company revealing it’s expected to post a 4% compound annual growth rate (CAGR) between 2023 and 2027, driven by its Sangomar oil development and its Scarborough gas start-up

Sangomar’s first production is targeted for late 2023 while Scarborough’s first LNG cargo is expected in 2026. The company’s selldown of Scarborough is ongoing.

Looking further to the future, the company is hopeful of its Trion, Calypso, Browse, and Sunrise projects. It’s aiming to make an investment decision on the Trion oil project next year with its first production expected in 2028.

Woodside noted demand for oil and gas is expected to remain strong beyond 2050.

Its oil business’ internal rate of return (IRR) is tipped at 15%, with payback within five years while its gas business’ IRR is said to be 12% with payback within seven years.

New energy, meanwhile, lags. Its IRR is set to be 10% with payback within 10 years. The company is targeting $5 billion of investments in new energy products and lower carbon services by 2030.

The energy giant revealed its financial year 2023 guidance earlier this week to the disappointment of the market. The Woodside share price plummeted as much as 5% on the release before recovering to close flat.

Woodside CEO Meg O’Neill today commented:

The company is well positioned as a high margin, high yield and gas weighted business that is generating strong returns today and will continue to do so as we realise our pipeline of development opportunities for 2027 onwards.

The post Woodside share price falls as the ASX 200 giant targets 4% annual growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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