Oil search Ltd (ASX: OSH) is an oil and gas exploration and development company. Oil Search operates oil and gas fields Papua New Guinea (PNG) and has a 29 per cent interest in the ExxonMobil-operated PNG LNG project. Oil Search also has interests in the United States. Oil Search has a market capitalisation of A$9.38 billion.
What are the key features of Oil Search full year results?
Oil Search net profit after tax (NPAT) for FY19 is US$312.4 million, down 8% on FY18 (FY18: US$341.2 million). Total revenue for FY19 is US$1,584.8 million, up 3% pm FY18 (FY18: US$1,535.8 million). Total production (mmboe) for FY19 is 27.9, up 11% on FY18 (FY18: 25.2). Total sales (mmboe) for FY19 is 27.8, up 11% on FY18 (FY18: 25.0). Total dividend of US9.5 cents per share, down 10% on FY18 (FY18: US10.5 cents per share).
What is the outlook for Oil Search?
Oil Search management note that total production (mmboe) guidance for FY20 is in the range of 27.5 – 29.5. Production cost guidance for FY20 (US$ per boe) is in the range of 11.00 – 12.00.
What is the market response?
The market reaction to Oil Search announcement is negative. Oil Search share price is down 2.5% and is currently trading at A$6.00. Oil Search is trading at a forward P/E ratio in the high-teens and has an annual dividend yield of around 2.5%.
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