Own Woodside shares? Here’s what the market is expecting from its full-year results

Two workers at an oil rig discuss operations.

Two workers at an oil rig discuss operations.

Woodside Energy Group Ltd (ASX: WDS) shares will be on watch next week.

That’s because on 27 February, the energy giant is scheduled to release its full-year results.

Ahead of the release, let’s take a look at what the market is expecting from the company.

What is the market expecting from Woodside’s results?

According to a note out of Morgans, its analysts are expecting Woodside to deliver very strong revenue and earnings growth in FY 2022. This is due to a combination of strong oil prices and the BHP Group Ltd (ASX: BHP) petroleum demerger.

The latter saw Woodside take control of these assets in the middle of last year, creating “a global independent energy company.”

As for oil prices, Morgans estimates that Woodside commanded an average brent oil price of US$101.11 a barrel during the 12 months. This is up from US$71.73 a barrel the previous year.

Revenue and earnings to double

The broker is forecasting revenue of US$16,973 million from Woodside in FY 2022, which represents a 139% increase year over year.

It will be a similar story for Woodside’s earnings according to the broker. It is forecasting EBITDAX of US$11,227 million and underlying EBITDA of US$10,990 million for the year. This will be up 142% and 154%, respectively.

And on the very bottom line, a net profit after tax of US$5,192 million is forecast. This will be up 210% from US$1,674 million a year earlier.

The good news for shareholders is that this earnings growth is expected to lead to a big dividend boost in FY 2022. Morgans is forecasting Woodside to pay a full-year dividend of 201.6 US cents per share (A$2.93). This will be up from 135 US cents per share in FY 2021.

Based on where Woodside shares are currently trading, this equates to a very generous 8.5% dividend yield.

The post Own Woodside shares? Here’s what the market is expecting from its full-year results appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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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