Oil Search increases profit by 34%

 Oil Search Ltd’s 34% increase in profit from the previous corresponding period was strongly attributed to the production of PNG LNG project.

Managing director Peter Botten said the US$152.5 million (K375m) net profit after tax for the first half this year was described as one of the strongest performance so far by the company. 

“The increase reflected the first revenues generated from the PNG LNG project.”

The company’s total revenue was US$510 million (K1253m) representing an increase of 34%, compared to same period last year. 

The revenue was driven by earnings from the PNG LNG project, as well as strong production and slightly higher oil price of US$111.57 (K274) per barrel compared to US$108.32 (K266) per barrel in the same period last year. 

Total production increased by 68% compared to the corresponding period, to 5.4 barrels of oil equivalent (mmboe), while total sales were 4.7mmboe, including 1.3mmboe of LNG and condensate from PNG LNG project.

Botten said production for the second half this year was expected to be higher now that the PNG LNG project production ramp-up phase was complete.

He said next year, the project was expected to add approximately 21 mmboe net to the company, resulting in total production to quadruple compared to last year.  

“The project is changing Oil Search and is changing Papua New Guinea and will provide a huge opportunity for the country,” he said.

Botten said Oil Search was well positioned for growth in other projects such as the Elk/Antelope.