LNG production on the North West Shelf drop -5% in the June quarter and was below forecasts. Morgans suspects the company is likely to be stuck with a collection of mostly large-scale, dry, remote and consequently capital intensive development assets.
Outside of Senegal, the broker envisages limited returns. The broker still envisages the growth profile is undersized relative to the existing production base and susceptible to commodity price risk. Target is reduced to $30.46 from $30.76. Hold retained.
Target price is $30.46.Current Price is $29.46. Difference: $1.00 – (brackets indicate current price is over target). If WPL meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).