Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Oil Search HY profit soars to $US129m

AAP  |  22 Aug 2017Text size  Decrease  Increase  |  

Page 1 of 1

SYDNEY - [AAP] Shares in Oil Search (ASX: OSH) have lifted after the Papua New Guinea-focused energy company reported a fivefold increase in first-half profit, courtesy of higher oil prices and cost cuts.

Oil Search's profit for the first half of 2017 is $US129.1 million ($A162.6 million), up from just $US25.6 million a year earlier.

The company says higher average oil and gas prices helped lift revenue 16 per cent to $US676.2 million despite a drop in sales volumes, while a 12 per cent drop in operating costs improved operating margin to 74 per cent.

Managing director Peter Botten said the company had improved its debt and cash position in the half year and would be cash-flow positive with a breakeven oil price of $US29.40 a barrel, "significantly lower than the realised oil price of $US53.35 a barrel".

While oil price forecasts had been revised down in line with market expectations, Mr Botten said the revision would not result in any asset impairments.

Oil Search increased its interim dividend from 1 cent to 4 cents and slightly lifted the bottom end of its full-year production guidance to between 29.0 and 30.5 million barrels of oil equivalent.

Oil Search shares were up 24 cents, or 3.8 per cent, to $6.63 at 1220 AEST.

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.