Woodside Energy Group’s (ASX: WDS) share price benefited from higher oil and spot liquefied natural gas (LNG) prices following the escalation of the US-Iran conflict and disruption to shipping flows in the Strait of Hormuz. Woodside Energy Group has no operations in the affected area, leaving it well positioned to benefit from the supply shock. During the month, the company also confirmed the permanent appointment of Liz Westcott as Managing Director and Chief Executive Officer, who reaffirmed the growth strategy, with a focus on project execution and shareholder value creation. Separately, an investor site visit to the Louisiana LNG project affirmed that the development remains on schedule and on budget, with de-bottlenecking opportunities identified. The company continues to be a key holding in the WAM Leaders investment portfolio with its geographical diversification and pipeline of growth projects positioning the company well in the current environment.
Ampol’s (ASX: ALD) share price was supported by higher oil prices and materially stronger refining margins following the disruption to Middle Eastern oil supply. Refining economics are highly sensitive to margin movements; therefore, the near-term refining environment is expected to improve as global supply tightens and as China restricts diesel and gasoline export contracts from major state refiners. The Australian Government also lifted the Fuel Security Services Payment thresholds, providing greater downside protection for Ampol’s refining business through the cycle. The ACCC’s Phase 2 review of Ampol’s proposed acquisition of EG Australia’s fuel and convenience retail network also progressed, with sites under review narrowing from 115 to 54; a determination is due by 5 June.
