Australia's Woodside Energy slips as Citi flags cost risks from Browse stake buy

Woodside Energy

12/06/2026 06:46

** Woodside Energy shares WDS.AX fall as much as 3.5% to A$30.43, biggest intraday pct drop since May 25
** ASX 200 .AXJO up 1.9%
** Oil and gas producer exercised pre-emptive right to buy PetroChina's 601857.SS 10.67% stake in Browse gas fields for $225 mln
** Citi ("buy", PT: A$34) says significant engineering, concept optimisation needed ahead of final investment decision
** Brokerage finds risks skewed to the upside on cost inflation, development capex assumptions
** Per recent Reuters reports, capex could be as high as about $35 bln, materially above WDS's 2019 estimate of $20.5 bln - Citi
** Avg WDS rating by 12 analysts is "hold", median PT A$33 - LSEG-compiled data
** YTD, stock up 31.6% vs AXJO flat

(Reporting by Aamir Sheik Khalid in Bengaluru)
((Aamir.SheikKhalid@thomsonreuters.com))