Reporting Season

ASX Reporting season preview: Woodside and Santos

Thu 21 Jul 22, 1:33pm (AEST)
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Key Points

  • ASX 200 oil companies under Morgans coverage heading into reporting season

Morgans views on ASX 200 oil companies heading into August reporting season.


Interesting to see Woodside Energy (ASX: WDS) backflip on a seemingly positive June quarter update on Thursday. The company's shares are down -4% at noon.

Morgans analysts see "solid potential" for Woodside to deliver a positive earnings surprise at its half-year result in August.

"Woodside could use its soaring earnings from the cycle and BHP merger to flex returns," the analysts said.

The broker was keen to see updates for growth assets such as Trion in the Gulf of Mexico and how the business is performing against the backdrop of inflationary pressures.

The analysts forecast Woodside to deliver US$5.49bn in revenue in the first-half, up 119% against the prior period.

Underlying net profits are projected to jump to US$1.77bn, up an outsized 401% compared to the first-half of FY21.

Morgans is Add rated with a $36.00 target price.

Woodside Energy Group Ltd (ASX WDS) Share Price
Woodside 12-month price chart


Likewise, Morgans is also sees "potential for a positive surprise" for Santos (ASX: STO).

"Santos has flagged that part of its focus this year will be to use its enlarged earnings profile to consider additional returns to shareholders," the analysts said.

"A key focus area in the result will be any update on asset sales at Dorado, PNG and Alaska. We hold the view that higher oil and gas prices has removed any urgency, with Santos likely seeking to sell more of Dorado to preserve its interests in PNG."

The analysts forecasts a 94.6% jump in first-half FY22 revenue to US$4.11bn and a 322% rise in underlying profits to US$1.34bn.

Morgans is Add rated with a $9.30 target price.

Santos Ltd (ASX STO) Share Price
Santos 12-month price chart


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Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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