Bulletin: Weak LNG Market Weighs On Woodside's Results And Growth Capacity

SYDNEY (S&P Global Ratings) Aug. 13, 2020--S&P Global Ratings today said that Australia-based integrated oil and gas company Woodside Petroleum Ltd.'s (BBB+/Negative/--) first-half ended June 30, 2020, results reflect a weak market for liquefied natural gas (LNG). In our opinion, the COVID-19 pandemic and recessionary economic conditions will continue to constrain the group's free cash flow over the next 12 months and capacity to internally fund future growth projects. We believe the pace of a market recovery and Woodside's growth strategy will be critical in the company maintaining a financial profile commensurate with a 'BBB+' rating during its next phase of elevated investment. Moreover, Woodside's dividend payout remains at 80%, which is consistent with our expectations that shareholder distributions would

...August 13, 2020 SYDNEY (S&P Global Ratings) Aug. 13, 2020--S&P Global Ratings today said that Australia-based integrated oil and gas company Woodside Petroleum Ltd.'s (###+/Negative/--) first-half ended June 30, 2020, results reflect a weak market for liquefied natural gas (LNG). In our opinion, the COVID-19 pandemic and recessionary economic conditions will continue to constrain the group's free cash flow over the next 12 months and capacity to internally fund future growth projects. We believe the pace of a market recovery and Woodside's growth strategy will be critical in the company maintaining a financial profile commensurate with a '###+' rating during its next phase of elevated investment. Moreover, Woodside's dividend payout remains at 80%, which is consistent with our expectations that shareholder distributions would be maintained. Despite a weak first-half, the results remain broadly in line with our base-case expectations. Weighted average realized prices fell to US$36 per barrel...

Bulletin