Citi expects Woodside, Santos to beat FY earnings estimates

STO

11/02/2022 24:26

** Citi said Woodside Petroleum  WPL.AX  and Santos  STO.AX 
are likely to beat full-year earnings estimates when they report
results next week
    ** Says Beach Energy  BPT.AX  remains the top pick in the
sector with "buy" rating
    ** Expects the Woodside results to be messy, with multiple
significant items pulling underlying earnings in both directions
    ** For Santos, brokerage sees earnings lift on improved
commodity price expectations and lowered production costs, with 
underlying earnings also expected TP benefit from treatment of
the Oil Search transaction charges as significant items
    ** For Beach, Citi sees the share price as trading below the
base business valuation, offering investors a free look at high
quality growth prospects in the Perth and Cooper basins 
    ** Citi still expects oil markets to move from under to
oversupply in 2Q22, which should see prices fall from averaging
US$79/bbl in 1Q22 to US$63/bbl by 4Q22
    

 (Reporting by Arundhati Dutta in Bengaluru)
 ((Arundhati.Dutta@thomsonreuters.com;))