Woodside Energy Group Ltd Shares Soar Amid Rising Energy Prices
Woodside Energy Group Ltd (ASX: WDS) shares have experienced a significant rise today, reflecting positive momentum in the energy sector. On Thursday, the company’s stock closed at $34.89, but by early afternoon on Tuesday, it was trading at $35.50, marking an increase of 1.8%. This upward trend is in line with the broader market, as the S&P/ASX 200 Index (ASX: XJO) has also seen a 1.6% gain during the same period.
The surge in Woodside’s share price can be attributed to rising global gas and oil prices. Since the end of December, Woodside shares have climbed by an impressive 50.5%, while the benchmark index has remained relatively flat. Adding the 83.5 cents per share fully franked dividends paid out on 27 March, the total return for investors stands at 54.0% so far in 2026. With a market capitalisation exceeding $67 billion, Woodside remains a major player in the Australian energy sector.
Analysts Weigh In on Woodside’s Future Performance
Fairmont Equities’ Michael Gable recently provided insights into the outlook for Woodside Energy. According to Gable, the company was being considered for investment prior to the conflict in Iran, driven by concerns over potential supply issues. He noted that investors have been underweight in the energy sector, suggesting that there may be opportunities for growth.
Gable, who currently holds a “hold” recommendation on Woodside shares, highlighted that the share price has surpassed several key technical levels, which is a positive indicator from a charting perspective. He also pointed out that Brent crude oil is currently trading at US$111 per barrel, up 83% year to date, further supporting the case for energy stocks.
Recent Financial Results and Market Reaction
Woodside released its full-year 2025 results on 24 February, showcasing strong performance despite challenging conditions. The company reported record full-year production of 198.8 million barrels of oil equivalent (MMboe), surpassing its guidance. Revenue for the year stood at $12.98 billion, a slight decrease of 1.0% compared to the previous year. Underlying net profit after tax (NPAT) fell by 8% to $2.65 billion, primarily due to lower realised oil prices in 2025 compared to 2024.
Despite these challenges, Woodside’s final dividend only decreased by 1.6%, and with improving oil and gas price forecasts in late February, the stock closed up 2.4% on the day of the results announcement.
Should You Invest in Woodside Today?
As the energy sector continues to evolve, investors are questioning whether Woodside Energy Group Ltd is still a viable investment. While the company has shown resilience and strong performance, it is essential to consider the broader market dynamics and individual investment goals.
Motley Fool Australia’s investing expert, Scott Phillips, recently highlighted five stocks that he believes are better buys at this time. Although Woodside was not among them, the company’s strong fundamentals and market position make it a compelling option for some investors.
Key Considerations for Potential Investors
Before deciding to invest in Woodside Energy Group Ltd, it is important to evaluate several factors:
- Market Trends: The energy sector is influenced by global events, such as geopolitical tensions and shifts in supply and demand.
- Financial Performance: Reviewing recent financial results and future outlook can provide insight into the company’s stability and growth potential.
- Dividend Yield: Woodside’s dividend payments offer additional returns for long-term investors.
- Risk Tolerance: Assessing personal risk tolerance is crucial when making investment decisions.
Investors should also consider consulting with a financial advisor to ensure that their choices align with their overall investment strategy.
