Woodside Petroleum Limited
(ASX:WPL) has the support of Moody’s Investors Service for its recently announced special dividend.
Moody's says the special dividend and increase in its targeted dividend payout ratio is credit negative but can be accommodated within its existing credit rating and stable outlook.
The ratings agency says Woodside's financial profile has been strengthened by the increased cash flow generation following the start up of the Pluto LNG project, combined with Moody's expectation for lower than previously projected capital expenditures over the next several years.
Woodside will pay a special dividend of $US0.63 per share next month and target a dividend payout ratio of 80 per cent of underlying net profit.
The special dividend was announced after the oil and gas company shelved its Browse gas plant and ruled out a near-term expansion of its flagship Pluto project.
Woodside Petroleum posted a net profit of $2.9 billion in its 2012 financial year.
