REPORTING SEASON: Oil Search Limited (OSH)
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Figure 1: Oil Search Limited 12 month chart
Oil Search (OSH) posted a 34% lift in 1H profit and all systems go for PNG LNG.
• Oil and gas explorer and producer Oil Search (OSH) posted a 34% lift in 1H2014 profit to US$152.5million OSH’s profit was boosted by a solid lift in output from its Liquefied Natural Gas (LNG) project in Papua New Guinea (PNG) that started earlier this year and shipped its first cargo in May 2014.
• Oil Search’s revenue was boosted by the first sales from its PNG LNG project and a slightly higher average realised oil price of US$111.57 a barrel up from US$108.32 this time last year. OSH said its cost per barrel decreased over the period as it ramped up production in PMG and expects costs to continue to decline now that PNG LNG is running at full capacity and 5% under budget.
• Today OSH announced it has temporarily suspended a well in Iraqi Kurdistan after violence in the region. Oil Search refined its FY14 production guidance today narrowing the expected range from 17-20million to 18-20million metric barrels of oil equivalent (mmboe)
• Oil Search told the market it will pay a US$0.2 interim dividend to shareholders on the 7th of October 2014. OSH also announced plans to raise its dividend over time starting with a higher final payment at the end of 2014.