Woodside Petroleum Limited (ASX: WPL) released its September 2019 quarter update this morning, is the share price a buy for dividends?
Woodside Petroleum is Australia’s largest independent oil and gas company with a global portfolio. It is an explorer, developer, producer and supplier of energy. The company has been operating for over 60 years and is now Australia’s leading LNG producer. Some of its current development projects are in Senegal (SNE), Myanmar, Canada (Kitimat) and Timor-Leste / Australia (Sunrise).
Woodside September 2019 Quarter Update
Woodside reported that it delivered production of 24.9 MMboue (Million Barrels of Oil Equivalent) – an increase of 44% from the last quarter.
It also generated sales revenue of $1.164 billion, which was an increase of 58% compared to the previous quarter.
Some of the other highlights from the quarter included the first oil being produced from the Greater Enfield Project and it executed major integrated turnarounds at the North West Shelf Project. It also achieved 99.7% reliability at Pluto LNG with record quarterly production and daily production rates.
Woodside also announced that it has signed mid-term agreements for the supply of approximately 3.5 million tonnes of LNG in the period from 2020 to 2026.
Woodside CEO Peter Coleman said: “Our major growth projects are progressing well towards key decision points. For the SNE development in Senegal, we are completing internal technical, cost and schedule reviews ahead of a targeted final investment decision (FID) before the end of the year.”
Is The Woodside Share Price A Buy For Dividends?
Woodside has been very busy, it has achieved a positive FID for the Pyxis Hub project, it has signed a heads of agreement (HOA) with Uniper Global Commodities for the sale of LNG for 13 years starting 2021, signed a non-binding letter of agreement with Korea Gas Corporation to determine the feasibility of a green hydrogen pilot project and in October it signed a HOA with Greening Australia to undertake a large-scale, native tree planting for carbon offset generation.
What all of the above says to me is that Woodside is continually working on making its business correctly placed to meet customer needs in the future, whilst also paying attention to the environmental aspect.
Woodside has a fully franked dividend yield of 5.6%. This didn’t may not be reliable all the time, as we saw in 2016 when the dividend fell to $1.05 per share, which would still translate to a fully franked yield of 3.3% today.
For dividends I would rather buy shares of the reliable businesses in the free report below.
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