Woodside chair Richard Goyder faces AGM test as $1bn WA deal scrapped
A major Woodside Energy institutional investor will vote against the re-election of chairman Richard Goyder, ratcheting up tensions ahead of next month’s AGM.
A major Woodside Energy institutional investor will vote against the re-election of chairman Richard Goyder, ratcheting up tensions ahead of the annual general meeting, as the energy giant shelves a $1bn deal to sell two major oil and gas projects.
Germany’s Allianz Global Investors, with $877bn of assets under management, said it would attend Woodside’s AGM on April 24 and planned to vote against Mr Goyder along with the company’s climate transition action plan.
“In our view, Woodside Energy is not demonstrating a sufficient level of action to meet the commitments of the Paris agreement,” Allianz said in a statement, referring to a global climate change pact.
The move follows proxy adviser Glass Lewis recommending shareholders vote against Mr Goyder because of what it called a “dismissive” attitude to concerns about emissions and climate. Glass Lewis also urged shareholders to reject Woodside’s decarbonisation plan.
However, that sparked resistance from Woodside, which argued the proxy adviser was relying on statements from green activist groups. A top energy analyst had also hit back at the proxy house, saying it has “lost objectivity and equity” and was acting more like an anti-industry activist than a body representing client interests.
Woodside on Thursday announced it had canned a deal to sell two major West Australian oil and gas facilities – the Pyrenees and Macedon oil and gas projects in WA’s Carnarvon Basin – that were put on the market in August 2023.
Woodside had planned to sever ties with the high-profile assets it picked up in its $40bn merger deal with a unit of BHP, despite Macedon being a major supplier to the state’s domestic gas industry.
But the energy producer said it had now ended the sales process.
“Following completion of this process, Woodside has decided to retain its current ownership levels in both assets. Macedon continues to be a critical supply source of gas to the Western Australian domestic market and Woodside continues to see strong value in both assets,” Woodside said.
“Woodside remains disciplined and value-driven when considering any potential merger and acquisition transaction, including divestments.”
Woodside had Morgan Stanley working as its exclusive financial adviser on the sale in a deal which sources said could be worth up to $1bn.
It holds a 71.4 per cent interest in the Macedon field and a 62 per cent share of Pyrenees, along with operator status. The assets have sustained production into the mid 2030s.
Expected buyers were rumoured to include Santos, which owns 28.6 per cent stakes in both of the facilities, along with Japan’s Inpex, which has a 9.4 per cent share of Pyrenees. SA player Beach Energy, which had operations in WA, might also consider an offer, sources said at the time.
While Woodside has been on the receiving end of strong protest votes at its annual meetings on climate grounds – for example, its 2021 climate report was adopted by just 51 per cent of shareholders – independent agencies such as Morningstar Sustainalytics rate the company’s performance as at worst a “medium” ESG risk rating.
Proxy adviser Institutional Shareholder Services backed the re-election of Mr Goyder to the board and said the debate over his tarnished record at Qantas should not extend to Woodside.
The Australian Council of Superannuation Investors also recommended a vote against Woodside’s climate plan but backed the re-election of Mr Goyder.
Still, Woodside has in recent weeks moved to prevent further shareholder unrest. At an investor briefing last month chief executive Meg O’Neill insisted the company was making meaningful progress in reducing emissions. In March, Woodside also released a revised climate action plan – including a Scope 3 emissions target for the first time – which Ms O’Neill has highlighted ahead of a critical AGM.
Mr Goyder earlier this year brought his retirement as chairman of Qantas forward by a year following controversies.
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