Qualified nod for Woodside dividend

Written By Unknown on Selasa, 23 April 2013 | 17.01

MOODY'S Investors Service says Woodside Petroleum's special dividend and increase in its targeted dividend payout ratio is credit negative but can be accommodated within its existing credit rating and stable outlook.

"Woodside's financial profile has been strengthened due to the increased cash flow generation following the start up of the Pluto LNG project, combined with Moody's expectation for lower than previously projected capital expenditures over the next several years", said Moody's analyst Matthew Moore.

"As such, the announced shareholder friendly initiatives are manageable, albeit they absorb most of the near-term cushion at the rating level (of Baa1)," he said in a statement.

Woodside will pay a special dividend of 63 US cents per share next month and target a dividend payout ratio of 80 per cent of underlying net profit.

The special dividend was announced after the oil and gas company recently shelved its controversial $45 billion Browse gas plant and ruled out a near-term expansion of its flagship Pluto project.


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