Oil Search production, revenue drop by 5pc

Posted on The National

SYDNEY: Oil Search says both its second-quarter production and revenue have dipped by 5 per cent as expected, but analysts were reportedly looking for a more substantial first-half recovery after last year’s earthquake in Papua New Guinea.
The company said total production for the April-June period came in at 6.9 million barrels of oil equivalent, down from 7.2 million barrels a year ago on account of scheduled maintenance activity, with first half production 38 per cent higher at 14.1 million barrels.
This reflects the damage caused during the prior corresponding period when a devastating earthquake halted operations.
Based on performance to date, production guidance for the 2019 full year is 28 – 31 million barrels, with the upper end slightly down on the previous outlook.
The company’s ASX-listed shares fell 2.18 per cent to US$7.18 (K24) by 1427 AEST, with Reuters reporting the first-half update had missed Refinitiv Eikon estimates.
Revenue for the second quarter was US$378.9 million (K1,253mil), down from US$398.1 million (K1,316mil) a year ago.
First half 2019 revenue was 39 per cent higher at US$777 million (K 2,569mil).
The company also lowered its full-year investment expenditure guidance to US$500 million (K1,653mil) to US$610 million (K2,017mil) from US$545 million (K1,802mil) to US$655 million (K2,166mil) following delays for the expansion of its PNG gas plant.
Meanwhile, Oil Search said talks with the Papua New Guinea government on the P’nyang gas agreement are on hold until the government – led by Prime Minister James Marape – completes a review of the Papua LNG agreement. – AAP

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