WDS 2026

I had my moments in 2025 with WDS - wanting to punt my entire holding on occasions out of sheer exasperation. I’m sure I’m not alone. Meg’s exit announcement was one particular instance but the market ended up absorbing that news surprisingly well.

Anyway as we enter a new year here below are a few thoughts and observations. The new year has begun with some enthusiasm for the big oilers (Chevron & Exxon) in the US …..not so much here but I’m still a firm hold on WDS.

Note : LPG is ultimately pegged to the price of Brent oil so when I’m talking ‘oil’ I’m talking LPG as well.

Peak oil /Net zero - a few years ago world wide oil consumption was forecast to be peaking around now …..more of a dream than a serious forecast ….the dreamers are having to accept that oil will be around for a few decades yet ….peak oil more likely 2050 ….and that’s ‘peak’ oil …still significant demand beyond that. So the long term capital investments WDS has made in recent years look even smarter now. The renewables crusaders were totally delusional as far as the ease and timeframe with which major western economies could transition away from fossil fuels and underestimated the unwillingness of massive fossil fuel burners like India and China to buy into the fast track timetable. Throw in ‘drill baby drill’ in the US and it’s no wonder 2030 targets now look completely laughable.

Supply - after initial fears that Trumps takeover of Venezuelan reserves would make the current world oversupply of oil even worse it has become apparent that the Venezuelan situation won’t have that much impact. Oversupply is still an issue currently but WDS is playing a long game and may benefit handsomely in the longer term.

Geopolitical - Iran is the latest flash point …..you can never rule out geopolitical events spiking the oil price back above $US70 or $US80

The experts - leading into Christmas none of them saw oil better than US$65 this year ….many were talking an average of US$55 and some were even saying we’ll see a 4 handle at some point in 2026. Venezuela and Iran show just how dangerous it is to get too comfortable with any forecasts.

The above makes me generally positive about WDS…..but not so much for short term gains. The future for WDS stretches out further now. It is so well positioned for 5 years out and 10 years out that I think it’s worth holding long term…..and I’ve learnt from experience over and over that if you think to yourself ….”I’ll sell now and buy back in a couple of years once it gets through this flat period” …..well that never works ….it’ll be up 5% then 10% then 20% before you pull the trigger.

So I’m an ongoing hold ….i expect this stock to continue trading in the low to mid $20’s this year and paying a dividend better than most. That’s good enough for me to hold with renewed confidence in the 3,5 and 10 year outlook. Remember this takes us beyond the next federal election by which time the Albanese government will have been much further exposed as far as their economic mismanagement (with living standards for the average Australian so much worse than when he came in) that a new government will surely be voted in with much more rational and deliverable policies on energy.

Good luck to all holders in 2026.