Woodside Petroleum Case Study Analysis Help With Solution
Investors in Woodside Petroleum are in for a shock in the shape of a sharply lower dividend for the 2015 financial year should oil price stay low, signalling that the upcoming dividend in February could be the last of the good times until prices pick up, according to JPMorgan.
Running a calculation on the hit on Woodside’s dividend assuming oil prices stay around $US50 a barrel, the broker found that the payout could slump to just US64¢ per share for the 2015 financial year from the $US2.58 expected for all of 2014.
However, under JPMorgan’s current forecasts for Brent crude oil, of $US82 a barrel for 2015, the drop in the payout to shareholders would be much smaller but still significant, with the dividend falling about 42 per cent to $US1.49 per share.
Still, in a research note ahead of Woodside’s quarterly report scheduled on Thursday, JPMorgan analyst Benjamin Wilson described the bank’s oil price forecasts as “optimistic” given Brent’s slide below $US50 on Monday.
Brent crude oil, the global benchmark, tumbled another 5.6 per cent on Monday to $US47.27 a barrel, bringing the slump since August to almost 60 per cent.
Evidence of the impact of the price weakness will be evident in Woodside’s quarterly sales report, but the greater impact of a persistent low oil price would be seen in the 2015 results because of the lag of several months between any change in oil prices impacting prices under liquefied natural gas sales contracts.
Woodside in 2013 adopted an 80 per cent payout ratio as its dividend policy, and while the ratio is set to be maintained the decline in the absolute level of earnings from lower oil prices will inevitably feed through to shareholder returns.
How it Works
How It works ?
Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
Features
Features for Assignment Help
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
Related Services
- Physics Assignment Help
- Chemistry Assignment Help
- Engineering Assignment Help
- Psychology Assignment Help
- Online exam Help
- Marketing Assignment Help
- Arts Assignment Help
- Sociology Assignment Help
- Project Management Assignment
- Case Study Help
- Nursing Assignment Help
- Research Assignment Help
- Operations Management Assignment help
- Accounting Assignment Help
- Biology Assignment Help
- Mathematics Assignment Help
- English Assignment Help
- Business Plan Help
- Essay Writing Help
- Human Resource Assignment Help
- Accounting Homework Help
- Computer Science Assignment Help
- Finance Assignment Help
- Economics Assignment Help
- Statistics Homework Help
- Management Assignment Help
- Strategy Management Assignment Help
- Auditing Assignment Help
- Information Management Assignment Help
- Online Assignment Writing help
- Best Assignment Help
- Humanities Assignment help
Questions
1. In the above article, JPMorgan noted that Woodside Petroleum may be under pressure to reduce or omit dividends on its ordinary shares as a result of a weak oil prices. Carefully examine why the reduction in dividends may harm its shareholders.
2. There is evidence to suggest that dividends have a more stable pattern than earnings. According to the article, Woodside in 2013 adopted an 80 per cent payout ratio as its dividend policy. What reasons can you suggest for the management of Woodside adopting a policy of paying a stable dividend in the face of declining earnings from lower oil prices?
3. Usually the Board of Directors increases dividend per share only slowly in response to rising profits, and is even more reluctant to decrease dividend than to increase it. Give reasons for this behaviour pattern. Is this behaviour more likely to be observed under an imputation tax system than under a classical tax system? Why, or why not?
Note: If you wish to use share price data to support your argument, please go to Google finance or Yahoo finance finding the related information. ALL Calculation should be provided from excel spreadsheet and copied to word document.
Your analysis should be clear, concise and well structured. The total word limit is from 800 to 1,000 words. The word limit is the maximum. Students should not feel compelled to write to the maximum. There is no need for an executive summary. The word limit excludes appendices, headings, calculations, calculation tables imported from Excel, figures, and references. There is no +10% tolerance.
Product Code :Case82
To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)
You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.