Oil Search: Investing in PNG's future

Oil Search Limited

Published on May 12, 2016

23 August 2016
Oil Search Limited’s 2016 Half Year Results
Oil Search Limited’s financial results for the 2016 half year are now available online.

Key highlights:

• First half 2016 profit after tax of US$25.6 million, compared to US$227.5 million in 1H 2015, reflecting the steep fall in global oil and gas prices.
• Production of 14.9 million barrels of oil equivalent (mmboe), 4% higher than in 1H 2015, with all-time record sales of 15.2 mmboe.
• Total revenue of US$580.8 million, down 33% on first half 2015, due to 27% lower realised oil and condensate prices and a 40% reduction in LNG and gas prices. 
• Unit production costs of US$8.21 per barrel of oil equivalent (boe), down from $10.08 per boe in 2015 and US$12.21 per boe in 2014, reflecting strong cost control. 
• At 30 July 2016, the Company had total liquidity of US$1.53 billion, comprising US$782 million in cash and US$748 million in available committed funding lines. 
• 2016 unfranked interim dividend of 1 US cent per share announced, representing a payout of 60% of profit after tax.
• Oil Search remains in a strong operating and financial position. The PNG LNG Project and the PNG oil fields are generating positive free cash flow and the Company continues to invest in value-adding growth. Oil Search believes that there is an increasing likelihood of downstream integration of the potential expansion of the PNG LNG Project and development of Papua LNG following the ExxonMobil bid for InterOil.  This would lead to material capital and operating cost savings, enhancing the projects’ competitiveness in a challenging LNG market and enabling the Company to continue generating strong long-term returns for shareholders.

To access the complete 2016 half year results announcement and presentation, please click on the following links: 

Oil Search 2016 Half Year Results Announcement 
Oil Search 2016 Half Year Results Presentation