Media release
Woodside’s Annual Report fails to turn the page
Perth, 25 February 2025: The Australasian Centre for Corporate Responsibility (ACCR) is commenting on the release of Woodside’s 2024 Annual Report and Climate Update.
Alex Hillman, Lead Analyst of the Australasian Centre for Corporate Responsibility (ACCR) said:
“Woodside may claim to be laying the foundation for a ‘new chapter’ of value creation, but it is just another page in the same old book.
“It is staggering that despite chronic share price underperformance, Woodside is leaving its capital management framework unchanged – digging its heels in on a flawed strategy.
“Over the last 15 years Woodside has generated 0.7% p.a total shareholder return on a US$ basis. In absolute terms over this time, Woodside delivered 168% lower returns than the ASX100 and 83% less than the MSCI World Energy index. Even the US cash rate generated 11% higher returns than Woodside.
“Woodside dropped its final dividend by 12%. Since the BHP Petroleum merger in 2022, it has doubled its capex and halved its dividend. This bucks the industry trend which is to allocate more funds to shareholder returns relative to capex.
“Astonishingly, Woodside increased its oil price assumption from $70 to $78 per barrel, calling into question Woodside’s claims of capital discipline.
“Only a year ago, investors comprehensively rejected Woodside’s climate plan, yet Woodside has made no meaningful response with nothing to show for a year of ‘listening’ to shareholders.
“The board seems in denial that its current strategy does not have market support.
“Some investors might tolerate inadequate response to feedback if returns were high, but Woodside is delivering substantially lower returns than both its peers and the market, whilst persisting with a high-risk fossil fuel growth strategy.
“Nothing in today’s reports indicate that Woodside realises it has a problem, let alone knows how to fix it.”
Background
Total Shareholder Returns are calculated on a USD basis, using the year(s) ending 31 December, 2024. US cash rate is based on the US Federal Reserve bank’s interest rate. Data sourced from Bloomberg Finance L.P.; used with permission of Bloomberg Finance L.P.
USD TSR for year(s) ending 31 December 2024 | WDS | ASX100 | MSCI World | MSCI World Energy | US cash rate |
|---|---|---|---|---|---|
1 year (% p.a.) | -20.8% | 2.3% | 19.2% | 3.7% | 5.4% |
3 years (% p.a.) | 11.5% | 4.0% | 6.9% | 16.6% | 4.1% |
5 years (% p.a.) | 0.2% | 7.1% | 11.7% | 9.3% | 2.6% |
10 years (% p.a.) | 1.3% | 7.2% | 10.5% | 4.6% | 1.9% |
15 years (% p.a.) | 0.7% | 7.1% | 10.7% | 4.5% | 1.4% |
15 years (%) | 10.9% | 179.0% | 356.7% | 93.6% | 22% |
15 years (% absolute outperformance to WDS) | 168.2% | 345.8% | 82.7% | 11% |
