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MarketScreener Homepage  >  Equities  >  Australian Stock Exchange  >  Oil Search Limited    OSH   PG0008579883

OIL SEARCH LIMITED

(OSH)
  Report
End-of-day quote. End-of-day quote Australian Stock Exchange - 10/29
2.6 AUD   -5.11%
10/29Australia, NZ shares follow global markets lower as virus cases surge
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10/26OIL SEARCH : Final Director's Interest Notice - M Togolo
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10/26OIL SEARCH : Final Director's Interest Notice - M Togolo
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Oil Search slashes costs to position itself for growth from 2025

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08/25/2020 | 02:53am EDT

Oil Search Ltd aims to start producing oil in Alaska in 2025 and expand Papua New Guinea (PNG) gas exports from 2027, after slashing costs to weather weaker oil prices in the wake of the coronavirus outbreak, its chief executive said on Tuesday.

The Australian-listed company reported an 85% plunge in half-year core profit on Tuesday and scrapped its dividend, hurt by the COVID-19 driven slump in oil prices.

After axing a third of its workforce and raising cash earlier this year, the company is now focused on cutting the break-even cost to well below $40 a barrel at its Alaskan Pikka oil project, where the company has found more oil with recent drilling.

"The last six months have been a catalyst for absolutely looking at every part of our business to be able to position us and grow our company at much lower oil prices," Keiran Wulff told Reuters in an interview after the results were released.

Oil Search aims to make a final investment decision on the Alaska project in 2021, aiming to start producing in 2025.

In PNG, Oil Search's growth projects have stalled due to tough bargaining by the government, but the pain of the oil price slump has led to a reopening of talks, Wulff said.

Wulff said he was confident the $13 billion twinned PNG LNG expansion and Papua LNG project, led by partners Exxon Mobil Corp and Total SA, will go ahead in time to meet a window of demand for new LNG forecast from 2027.

Oil Search's core profit after tax for the six months to June slumped to $24.7 million from $165.2 million a year earlier - far short of a broker consensus forecast of $61 million - as its average realised oil prices dropped 45% and LNG prices fell 15%.

Including writedowns on its PNG exploration assets, the firm slumped to a net loss of $266 million.

Investors shrugged off the result, sending Oil Search's shares up 0.7%, roughly in line with oil price gains.

By Sonali Paul and Pranav A K


Stocks mentioned in the article
ChangeLast1st jan.
EXXON MOBIL CORPORATION 4.43% 32.97 Delayed Quote.-52.75%
LONDON BRENT OIL -1.65% 37.04 Delayed Quote.-38.33%
OIL SEARCH LIMITED -5.11% 2.6 End-of-day quote.-64.14%
TOTAL SE -0.55% 25.13 Real-time Quote.-48.92%
WTI -1.58% 35.625 Delayed Quote.-36.69%
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Financials
Sales 2020 1 555 M 1 091 M 1 091 M
Net income 2020 -401 M -281 M -281 M
Net Debt 2020 3 400 M 2 385 M 2 385 M
P/E ratio 2020 -12,0x
Yield 2020 0,08%
Capitalization 5 402 M 3 789 M 3 790 M
EV / Sales 2020 5,66x
EV / Sales 2021 5,03x
Nbr of Employees 1 607
Free-Float 99,2%
Chart OIL SEARCH LIMITED
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Technical analysis trends OIL SEARCH LIMITED
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 15
Average target price 3,79 AUD
Last Close Price 2,60 AUD
Spread / Highest target 112%
Spread / Average Target 45,9%
Spread / Lowest Target 5,77%
EPS Revisions
Managers
NameTitle
Kieran Wulff Managing Director & Director
Richard John Lee Chairman
Stephen W. Gardiner Chief Financial Officer
Beth White Executive VP-Sustainability & Technology
Kostas Goerge Constantinou Independent Non-Executive Director
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1st jan.Capitalization (M$)
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