Woodside to own 50% stock in Scarborough through $2.5bn share sale
Category: #world  By Saipriya Iyer  Date: 2018-02-14
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Woodside to own 50% stock in Scarborough through $2.5bn share sale

Woodside Petroleum Limited, a major oil & gas producer in Australia, has decided to sell shares worth USD 2.5 billion for acquiring 50% stake in its Scarborough gas field joint venture with ExxonMobil. Sources claim that the firm is also reviewing the developments taking place in its Browse LNG Undertaking.

According to the CEO of Woodside, these two ventures were aimed at developing new gas supplies across Western Australia. He further stated that the acquisition of 50% ownership of Scarborough Project will offer the firm more control over the project, thereby providing it with lucrative avenues across the oil & gas sector of the region.

For the record, the offer will provide investors with an opportunity to acquire one extra Woodside share at USD 27 for each of their nine shares. The company officials have announced that though the new stocks will have the same value as those issued, they will be ineligible for the last year’s dividend. The Australia based oil & gas firm is reported to increase its equity raising after earning a net profit worth USD 1 billion in 2017, which is more than 18% as compared to its revenue estimated at USD 868 million during 2016. The Sunday Morning Herald has reported that Woodside Petroleum’s free cash flow has witnessed an exponential growth, with an increase of 629% y-o-y up to USD 832 million.

Industry analysts have predicted that Woodland’s acquisition of Scarborough can result in the more fund allocation and investments in LNG projects across Australia. With the existing low market sentiment, USD 444 million price paid by Woodside to ExxonMobil for claiming an additional stake in the Scarborough Project is believed to be a good deal for the latter. Experts claim that the equity raising will help Woodside build a strong position across the oil & gas industry.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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