Woodside Petroleum Limited Update

Submitted by Craig Strzelecki on 19 April, 2007 - 18:14

Woodside Petroleum Limited (WPL) has a maintained Buy 1 broker call and a price target of $45.64 from sharemarket analyst UBS. Mar 2007 Quarter update: Offshore Libya drilling begins with WPL sales revenue broadly in line with the analyst's forecast. Sales revenue of A$899.3m over the Mar ’07 qtr was 18% below the Dec ’06 qtr, but also broadly in line with their forecast for 16% decline. This result was adversely affected by tropical cyclone activity and asset sales (Legendre). Overall, this production report had no negative surprises. Most importantly, all new growth projects that underpin our strong Woodside 2008 production growth outlook remain on schedule. After updating their Woodside forecasts with the March ’07 qtr production data, our Woodside Petroleum EPS forecasts have increased by less than 1% per annum (2007E-2009E). The analyst believes Woodside represents one of Australia's best long term resource sector investments, largely due to its high quality asset base which has potential to support an exceptional production growth profile from a diversified portfolio of mainly Woodside operated oil, gas and LNG project developments. Their NAV estimate is based on a DCF (10% nominal discount rate) of WPL forecast cash flow over the 2P reserve life of producing assets and all committed and highly probable projects. Their 12-month share price target is A$45.64 (prior A$45.03) and is based on their NAV, significant contingent resources and potential exploration upside.

Woodside Petroleum Limited is listed on the Australian Stock Exchange (ASX) under stock code WPL. You can view their investor website here. WPL was listed on the ASX on 18 November, 1971. Don Voelte is the CEO of Woodside (WPL). The principal activity of WPL is the Management and operation of hydrocarbon exploration, development, production, transportation and marketing; implementation and operation of the North West Shelf Gas Project; exploration and development of gas, oil and condensate reserves. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!

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