What boosted the Woodside share price on Wednesday?

The Woodside Energy Group Ltd (ASX: WDS) share price went up more than 3%, adding to the ongoing rise over the last few weeks.

This gain compares to a 0.5% rise of the S&P/ASX 200 Index (ASX: XJO), so it was a day of useful outperformance for Woodside shareholders.

The oil and gas giant is highly sensitive to changes in the oil price. A higher commodity price means that Woodside can generate higher earnings for the same amount of resources produced.

According to CommSec, the oil price went up by around 4% overnight, so perhaps it is unsurprising that the Woodside share price rose by a similar amount.

Upcoming FY22 result

On 30 August, shareholders will receive the FY22 half-year result, revealing how much net profit after tax (NPAT) and cash flow the business generated. Investors will also learn how large the interim dividend is going to be.

Woodside has already given its 2022 second quarter report for the period ending 40 June 2022. In that, it revealed that it achieved an average realised price of $95 per barrel of oil equivalent. This helped it deliver revenue of $3.44 billion, a rise of 44% compared to the first quarter of 2022.

Construction starts on Pluto Train 2 project

The resources business announced today that construction has commenced on the Pluto Train 2 project, which it called a “key milestone supporting jobs and economic growth in Western Australia.”

This project will be the second liquefied natural gas (LNG) train at Woodside’s existing Pluto LNG onshore facility and will process gas from the Scarborough development. Pluto Train 2 will have an LNG capacity of around 5 million tonnes per annum. This boost could be helpful for the Woodside share price in the coming years.

Woodside said that, as the operator of Pluto Train 2 and Scarborough, it has made “commitments to the Western Australian Government in its community development plans to support positive and sustainable community outcomes in the Pilbara region.”

The CEO, Meg O’Neill, said that the gas processed through an expanded and efficient Pluto facility will “support the decarbonisation goals” of customers in Asia.

Bechtel will execute the engineering, procurement and construction of Pluto Train 2. It has already engaged a number of local and indigenous businesses to support delivery, with more awards anticipated as the project progresses.

Woodside share price snapshot

Over the past six months, Woodside shares have risen by 24.6%.

The post What boosted the Woodside share price on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why is the Woodside share price having such a cracker of a day?
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Why is the Woodside share price whizzing 5% higher on Friday?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Tristan Harrison 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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