Woodside Petroleum investors should brace themselves for dividend cut this fiscal year. Analysts have warned that the next month’s payout is up to be the last of the investors’ good time. This is something we expect until the oil prices go back to power.
However, sources revealed that the results are expected to be seen in the fourth quarter report of the company on Thursday as well as on its full year report of earning in the next month. About the impact shareholders will experience after the poor performing oil prices is expected to be felt later this year. The said collapse is said to be accountable for the lower prices of liquefied natural gas, especially if the prices keep its track close to six-year lows.
Analysts from the JPMorgan revealed that this month, in February, the time for the dividend payout, could be the last positive outcome for shareholders, until the prices of oil picks up soon. In addition, authorities noted that Woodside was a favorite among investors in 2014 due to higher payout on dividends, based on the company’s latest 80 percent payout policy. Although this ratio is still implemented, the drop in profits could be expected due to the continuous plunge of oil prices.