Oil Search Q4 Total Revenue Sequentially Rises
(RTTNews.com) - Oil Search Limited (OSH.AX) reported that total revenue for the fourth quarter was US$503.1 million, 6% higher than in the previous quarter. This reflected a 5% increase in hydrocarbon sales and stronger realised LNG and gas prices (up 5%), partly offset by lower realised oil and condensate prices (down 15%). Despite the earthquake, revenues for the full year were 6% higher than in 2017, at US$1.54 billion.
Total oil and gas production for the fourth quarter was 7.4 mmboe, which was similar to levels achieved prior to the earthquake. Oil Search's operated production increased 16% on the previous quarter, to 1.0 mmboe, reflecting a full quarter of contribution from the Moran and Agogo fields, which resumed production in the third quarter. Earthquake remediation work, particularly at remote sites, continued and is now nearing completion.
The PNG LNG Project produced at an average annualised rate of 8.8 MTPA during the second half of 2018, the highest half-yearly rate ever achieved. Fourth quarter production averaged 8.7 MTPA, marginally lower than the record levels achieved in the third quarter, due to two minor unplanned outages at the LNG plant. Both issues were resolved swiftly, and on both occasions the plant was brought back online without incident.
Production costs and depreciation and amortisation charges for 2018 are expected to be at the lower end of the previously advised guidance ranges of US$11.50 - 12.50 /boe and US$12.00 - 13.00/boe, respectively.
Net financing charges, consisting primarily of PNG LNG Project borrowing costs, are expected to be between US$209 and US$213 million.
The company said that its financial results for the year to 31 December 2018 will be released to the market on 19 February 2019.
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