SSLZY - Woodside rises after softer than feared change to Australia petroleum tax

2023-05-08 12:56:43 ET

Woodside Energy ( NYSE: WDS ) +1.8% in Monday's trading after the Australian government adopted more favorable than expected changes to petroleum taxes, ensuring the load will be shared across the industry and not impact growth projects.

Australia announced its plan over the weekend to change its Petroleum Resource Rent Tax to raise the tax paid by the offshore liquefied natural gas industry, moves that should increase revenue by A$2.4B (~US$1.6B) over the next four fiscal years.

The government said it will adopt eight of the 11 recommendations from a Treasury review of gas transfer pricing rules, including a key proposal that will limit the proportion of PRRT assessable income on LNG projects that can be offset by deductions to 90% starting July 1.

At least four LNG projects will be affected: Chevron's ( CVX ) Gorgon and Wheatstone projects in Western Australia, Inpex's ( OTCPK:IPXHY ) ( OTCPK:IPXHF ) Ichthys LNG venture in Darwin, and Woodside's ( WDS ) Pluto venture.

Woodside ( WDS ) and Santos ( OTCPK:SSLZY ) ( OTCPK:STOSF ) shares traded more than 2% higher in Australia.

More on Woodside Energy:

• See financial and valuation comparisons to sector peers
• SA analysis: Strong Market Demand Can Sustain Over 12% Dividend Yield
• Stock price return: Down less than 1% YTD, up 2.5% in the past 12 months

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