Rising Woodside expectations
As part of its quarterly results yesterday, Woodside flagged 2013 impairments of $A380-400 million plus a $200-250 million Petroleum Resource Rent Tax benefit.
While the full year financial results will be unveiled on February 19, various analysts are hopeful of a decent dividend.
Macquarie Equities analyst Adrian Wood made it clear the PRRT news mattered more than the impairment revelations.
"If you are concerned about the dividend, the more important influence is this massive PRRT credit," he told the Australian Financial Review.
"It goes straight to the bottom line and will be included in the dividend calculation.
"If you're a shareholder, you've had strong revenue and this PRRT credit … is going to support underlying earnings so your dividend expectations are probably rising because they just pay 80% of it now."
State One analyst Peter Kopetz considered Woodside's potential deal to buy a 30% stake of the Israel-based Leviathan LNG project.
He told AAP if it didn't go ahead then Woodside was likely to put its cash into organic growth and hand more funds back to shareholders.
"The shareholders should be happy either way," Kopetz reportedly said.
"It could be a bonanza."
Meanwhile, internet-based The Motley Fool took note that Woodside's capital expenditure fell 61% last year.
"Sometimes we miss opportunities right under our nose," MF said.
"Shares in Woodside are up 7% in the last 12 months, slightly lagging the S&P/ASX 200 index.
"For a company with strong, stable cash flows, a healthy dividend and long-term growth opportunities, it feels like Woodside may be being overlooked by prospective investors."
However, Macquarie Private Wealth maintained a neutral rating on Woodside and a 12-month price forecast of $40 per share in a recent research note.
"The larger than expected post-tax PRRT credit sees underlying earnings rise 10%," MPW said.
"Reported earnings, however, are just 1% higher due to the inclusion of the anticipated impairments."
Robe council versus Beach
Community opposition to Beach Energy's shale gas drilling plans near Penola in the Otway Basin of southeast South Australia has intensified, with the District Council of Robe reportedly approving a moratorium on unconventional gas extraction in the region on Tuesday night.
"Groundwater integrity is obviously our highest concern as we are a community that is very dependent on it," Robe Mayor Peter Riseley told the Stock Journal.
"It's our only source of water."
The council will reportedly attempt to get the South East Local Government Association and agricultural lobby groups on board with its moratorium, as well as writing to government ministers.
Beach is reportedly advancing plans to drill two exploration wells near Penola.
A state government spokesperson defended the relevant approvals process and reportedly said the decisions made were based "on the science, not emotion".
Algeria eyes more foreign investment
Algerian Energy Minister Youcef Yousfi has revealed that an oil and gas licence bidding round will be launched in the coming weeks.
"This will not take place in the first six months of the year but within the coming weeks," he told state radio, according to Reuters.
He reportedly said Algeria had 32 oil and gas discoveries last year while existing crude output was about 1.2 million barrels per day.
Under legal reforms there are new tax incentives for foreign investment.
Unconventional exploration blocks will reportedly be granted for up to 11 years while exploitation licences will last 40 years for shale gas and 30 years for shale oil.
Conventional petroleum blocks will remain at seven years for exploration licences and 25 years for exploitation/production licences.
Yousfi reportedly said Algeria planned to build five oil refineries to double output but construction timeframes were not provided.
