Oil Search Limited (ASX: OSH) is the oil and gas development and exploration firm. The company is headquartered in Port Moresby, Papua New Guinea.
Oil Search is expanding its liquified natural gas portfolio size in Papua New Guinea (PNG). It has signed a crucial, three-times delayed deal with the Papua New Guinea government on fiscal terms in Port Moresby. It was long pending from the November 2018, which got deferred until March 2019, and then April 2019. PNG LNG project involves Total (French Oil Giant) and is expected to be followed by ExxonMobil-led PNG LNG involving Santos. Oil Search is expected to be benefitted from both the projects as it will add more than 8 million tonnes a year of LNG capacity, which would double the present capacity.
The company recently announced a change in voting power of its substantial holder FIL Limited and the entities from 6.04% to 5.01%, effective 5 April 2019.
In another update, it has entered into an agreement with the Independent State of Papua New Guinea along with Total SA, ExxonMobil and operator of the Papua LNG Project, to define the fiscal framework for the Papua LNG Project.
On April 4, 2019, Oil Search presented a pleasing result on its Muruk and Pikka wells in Alaska for March 2019. It demonstrated the company’s capability and commitment to conduct safe and responsible operations.
The group also reported that its PNG LNG Project co-venturers signed a mid-term LNG sale and purchase agreement with Unipec Singapore Pte Ltd to supply around 0.45 MTPA of LNG over a four-year period commencing in April 2019.
In its annual results report, net production reduced by ~17% to 25.21 mmboe in FY18, which was due to complete production shut-in across both PNG LNG and operated facilities because of the devastating Papua New Guinea Highlands earthquake in late February 2018. Despite lower production, the revenue was reported at US$1,535.8 million in FY18, up by ~6% as compared to FY17, which was predominantly driven by stronger average realised oil and gas prices during 2018. Due to the shut-down of production following the Papua New Guinea earthquake, the costs involved in amortisation decreased to US$310 million in 2018.
Its NPAT increased by ~13% to US$341.2 million in FY18. The net debt increased by ~3.2% to US$2,693 million due to all-cash acquisitions of license interests in Alaska. The Board declared a dividend of AUD 0.12103949 for the six months ended 31 December 2018, with a payment date on March 28, 2019, and record date on March 6, 2019.
On the stock information front, at market close on 10th April 2019, the stock of Oil Search was trading at $8.060, down 1.104%, with a market capitalisation of $12.42 billion. Its current PE multiple is at 25.69x, and its last EPS was noted at $0.317. Its annual dividend yield has been noted at 1.83%. Today, it made day’s high at $8.13 and day’s low at $8.02 with average daily volume of 2,740,094. Its 52 weeks high was at $9.265 and 52 weeks low at $6.70, with a volume of 4,167,533. Its absolute return for five years, one year, six months, and three months are -6.32%, 9.03%, -12.13%, and 8.73%, respectively.
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