Woodside annual meeting: Liz Westcott says Middle East war shows need for reliable energy alongside carbon
New Woodside boss Liz Westcott says war in the Middle East is ‘a dramatic reminder’ governments need to prioritise reliable energy alongside cutting emissions.
New Woodside boss Liz Westcott says war in the Middle East is “a dramatic reminder” governments need to prioritise reliable energy alongside cutting emissions.
Ms Westcott was appointed last month to succeed Meg O’Neill as boss of the $60 billion business after Ms O’Neill took the helm of supermajor BP.
But her entry into the job has been met with stiff opposition from some investor quarters, with a big protest vote against her pay deal.
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By continuing you agree to our Terms and Privacy Policy.The company would “continue to monitor” disruption to energy markets caused by the conflict between the US, Israel and Iran, she told the company’s annual meeting in Perth on Thursday.
Iran responded by closing the Strait of Hormuz which transits about a fifth of the world’s seaborne gas trade.
Energy prices have been pushed up across the globe, including in Australia.
“(The war) is a dramatic reminder that reliable and affordable energy remains key to global economic growth, and the quality of life we enjoy in countries like Australia,” Ms Westcott said.
“As nations around the world prioritise energy security and affordability alongside decarbonisation, Woodside is confident in ongoing demand for LNG as a reliable and flexible energy source.”
Woodside has pledged about $US5 billion into greener energy technology by 2030 but remains under pressure from shareholders to speed up progress.
That came to a head at an AGM two years ago when the company’s climate plan was voted down.
Woodside shares lifted 2 per cent to $31.38 in morning trade. That’s up about 25 per cent since the start of February.
The company also faced a vote over Ms Westcott’s pay structure as incoming boss, with major advisory CGI Glass Lewis recommending investors oppose the arrangement.
About 34 per cent of shareholders voted down the deal.
Market Forces senior analyst Brett Morgan labelled it a “deeply flawed executive pay structure”.
“Woodside’s own modelling concludes the company could be cashflow negative as early as 2031 if global LNG demand declines in line with (the Paris Agreement),” he said.
Woodside chair Richard Goyder said the pay deal was designed to lift return on capital and drive shareholder returns.
Responding to the impact of the war on the oil price potentially making Ms Westcott’s targets easier, he said: “We don’t intend to change the targets . . . but we will keep an eye on this.”
