Woodside's buyback fails

Woodside Petroleum’s controversial Pluto project – we’ve dubbed it a dud, management hails it as a success – is now generating strong cash flow but a paucity of projects means the company has few options to reinvest cash. Management’s solution was a good one: Woodside proposed spending $2.9bn buying back shares from its largest shareholder, Shell. That would have soaked up surplus cash, prevented Shell from dumping stock on market and reduced the company’s share count. However, shareholders have voted down the plan, cross that Shell would have gained favourable access to Woodside’s US$2.8bn stash of franking credits. We...

Woodside Petroleum’s controversial Pluto project – we’ve dubbed it a dud, management hails it as a success – is now generating strong cash flow but a paucity of projects means the company has few options to reinvest cash. Management’s solution was a good one: Woodside proposed spending $2.9bn buying back shares from its largest shareholder, Shell.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles