OSH

Oil Search half-year profit rises nearly sixfold on higher oil prices

Credit: REUTERS/David Gray

Papua New Guinea-focused Oil Search Ltd on Tuesday reported a nearly sixfold rise in its half-year core profit as easing pandemic restrictions boosted oil demand and lifted prices.

Adds details on dividend, background

Aug 24 (Reuters) - Papua New Guinea-focused Oil Search Ltd OSH.AX on Tuesday reported a nearly sixfold rise in its half-year core profit as easing pandemic restrictions boosted oil demand and lifted prices.

The profit jump comes as the energy explorer is moving closer to a A$8.4 billion ($6.06 billion) buyout from rival Santos Ltd STO.AX that would create a top-20 global oil and gas company with assets in Australia, Papua New Guinea and Alaska.

"Oil and LNG markets have continued to recover from the initial economic impacts of the COVID-19 pandemic led by a robust demand rebound in Asia," said acting Chief Executive Peter Fredricson.

Oil companies have benefited from a more than 50% surge in crude prices this year as rising vaccination rates and reopening economies spur travel and industrial activity.

Papua New Guinea-focused Oil Search's core profit after tax rose to $139 million for the six months ended June 30 from $24.7 million a year earlier.

The company declared an interim dividend of 3.3 cents per share. It had withheld a payout last year to save cash during the pandemic.

($1 = 1.3862 Australian dollars)

(Reporting by Savyata Mishra and Harish Sridharan in Bengaluru; Editing by Devika Syamnath)

((Savyata.Mishra@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

OSH

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More