Board governance questions
Woodside Energy director Mark Cutifani did not fully alert the oil and gas giant’s board to his involvement in an activist campaign by Elliott Management against Northern Star Resources, complicating efforts to find a successor for chairman Richard Goyder, as reported by the Australian Financial Review.
Cutifani was proposed by the American investment firm as one of six potential directors for Northern Star, concerning others on the Woodside board, according to two people close to the board who requested anonymity to speak freely. At least some Woodside directors were only alerted to Cutifani’s nomination after Elliott named him in an open letter this month, the Australian Financial Review reported.
Cutifani, a former chief executive of Anglo American, is a contender for the Woodside chairmanship and has a seat on the board, as noted by Forbes. His connections to Elliott Management have raised questions in the Australian news media, according to Forbes.
Financial Results
Amid the boardroom speculation, Woodside Energy lifted its underlying net profit by 7% to $1.33 billion in the June half-year, up from $1.24 billion, reported Forbes. The result came against a background of high prices for oil and gas caused by the Iran war, Forbes noted.
The company lifted its interim dividend from 53 cents to 57 cents, and total operating revenue rose 13% to $7.5 billion, driven by production of 86.5 million barrels of oil equivalent, according to Forbes. Woodside share price rose 2.5% in early trading on the Australian stock market.
CEO Liz Westcott said the company had delivered strong production, cash flow and shareholder returns, while continuing to execute the next phase of growth, as quoted by Forbes.
Succession and Speculation
Richard Gooyder is stepping down as Woodside chairman without a clear successor, creating boardroom instability that has drawn investor attention, according to Forbes. The race for his replacement includes Mark Cutifani, a seasoned mining executive, who has a seat on the Woodside board, Forbes reported.
Forbes also noted speculation of a merger proposal from global oil major Exxon Mobil, though no formal offer has been confirmed. Woodside, which has no dominant shareholder since Shell sold its interest about a decade ago, holds LNG interests in Australia and a U.S. project in Louisiana, Forbes reported.
The Scarborough gas development, a flagship expansion project, is expected to start shipping LNG later this year, which could attract greater investor interest, Forbes noted.
Perspectives
No direct viewpoints from named parties were available in the sources reviewed. The article relies on reporting from the Austen Financial Review and Forbes, which both focus on the conflict and financial performance but do not attribute a position to Woodside itself or to Cutifani. As such, no separate perspectives section is included.