Woodside Energy's FY23 underlying earnings (EBITDA) and profit beat consensus forecasts by 1% and 9%, respectively, due to better-than-expected production costs, royalties and D&A expense, explains Morgans.

The final dividend of US60cps also beat forecasts by consensus and the broker for US48cps and US40cps, respectively, supported by the recent agreement to sell-down a -15% stake in Scarborough, note the analysts.

The broker highlioghts gearing of 12% is at the low end of management's targeted range of 10-20%.

The Add rating is maintained and the target price eases to $34.20 from $34.30.

Sector: Energy.

Target price is $34.20.Current Price is $30.17. Difference: $4.03 - (brackets indicate current price is over target). If WDS meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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