Woodside Energy Group Ltd (WDS) saw its stock price plummet 5.45% in pre-market trading on Tuesday, following the release of disappointing first-half financial results and amid a broader decline in the energy sector. The Australian oil and gas producer reported a significant drop in its post-tax underlying net profit, missing analyst expectations and raising concerns among investors.
Woodside's H1 post-tax underlying net profit fell to $1.25 billion, down from $1.63 billion in the same period last year and slightly below the $1.27 billion forecasted by analysts. The company's quarterly earnings of $0.69 per share missed the analyst consensus estimate of $0.71, representing a 31.88% decrease from the previous year. Although operating revenue rose to $6.59 billion from $5.99 billion a year earlier, it still fell short of the $6.67 billion analyst estimate.
The energy sector as a whole was facing headwinds, with the Energy Select Sector SPDR Fund (XLE) down 0.3% pre-market. Adding to the pressure, oil and natural gas futures were also declining, with West Texas Intermediate crude oil down 1.4% and natural gas futures dropping 2.6%. These market conditions likely contributed to Woodside's sharp stock price decline. Meanwhile, the company continues to negotiate the sale of a 20% to 30% stake in its $17.5 billion Louisiana LNG project, which could impact its future performance and investor sentiment.
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