Woodside Underperforms as Oil Slump and Board Changes Weigh
Synopsis
Investors reacted to lower crude prices and a management update, sending the energy giant’s shares lower even as the broader market advanced.
Key Highlights
- Woodside Energy drops 1.2% after director Tony O’Neill resigns.
- ECD O’Neill resigned as a non-executive director on 1 July.
- Brent crude, the global oil benchmark was also down applying pressure on energy shares.
- Friday’s fall in shares pushes Woodside back to 17.2% higher from the end of 2026.
Woodside Energy Group Ltd (ASX: WDS) shares fell on Friday after the company revealed Tony O’Neill is stepping down as a non-executive director on July 1.
The shares lost 1.2% to A$27.69 in late morning trade, as the S&P/ASX 200 Index rose 1.3%. Brent crude which fell 0.3% overnight to US$71.60 a barrel, was also weighing on sentiment as it remains over 25% lower since the start of last month.
Board Reshuffle
O'Neill was appointed to the Woodside board in 2024, and served on the Audit & Risk, Sustainability and Nominations & Governance committees.
The chairman, Richard Goyder, thanked O’Neill for his input during a transition phase at the group and praised his insights on sustainability in all aspects of decarbonisation and operational performance.
In media statements, O’Neill’s exit was connected to past business in the UK dealing with Mark Cutifani, who joined the Woodside board earlier this year. A Woodside spokesman said that O’Neill had resigned to enable both the company and board to focus on execution, and remove distractions moving forward.
Analysts Flag Governance Concerns
Despite the change in the board, analysts said governance issues could remain on investors’ radar.
MST Marquee analyst Saul Kavonic says concerns remain for investors until the chairman succession process is structured as independent. The forced resignation of Woodside Petroleum director Andrew Liveris could allow for the appointment of someone more in touch with the company’s future governance needs, the Australasian Centre for Corporate Responsibility said. That drop on Friday still leaves Woodside shares 17.2% higher in 2026.
Source: Motley Fools
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