Shares in Woodside Energy Group have declined following the announcement that CEO Meg O’Neill will depart the company to take up a leadership position at BP. O’Neill’s tenure at Woodside concluded on Thursday, after which she immediately transitioned to BP, a London-based petroleum giant, in a senior role. Woodside Energy Group is an Australian petroleum exploration and production company. It is one of the largest independent upstream oil and gas companies in the world.
The appointment of Liz Westcott as acting chief executive has been viewed positively by some analysts. RBC Capital Markets analyst Gordon Ramsay noted Westcott’s strong operating focus as the executive vice president and COO of Australia. He emphasized the importance of continued strong asset performance and new project execution for Woodside moving forward. Ramsay pointed out that the Woodside Board has indicated that there are several highly qualified internal candidates to potentially fill the CEO role.
Ramsay also mentioned that seven executive vice presidents report directly to the CEO, suggesting a deep bench of capable individuals within the organisation. Despite this, RBC Capital Markets has expressed a “negative” sentiment regarding the leadership change. The firm currently maintains a price target of $33.50 on Woodside shares.
The market’s reaction reflects investor uncertainty amid the transition. While Westcott’s appointment provides stability, the longer-term leadership strategy remains to be seen. The company will have to conduct a search for a permanent chief executive officer in the coming months.
