OIL and liquefied natural gas (LNG) markets have continued to recover from the economic impacts of the coronavirus disease (Covid-19 pandemic, led by a robust demand rebound in Asia, Oil Search says.
Acting chief executive officer Peter Fredricson said: “We have seen a significant increase in core earnings, reflecting higher realised oil prices and a sustained focus on reducing underlying costs, whilst a lower net debt position has contributed to a significant improvement in the company’s overall financial strength.”
He yesterday announced the company’s net profit of US$139 million (about K478.81 million) for the half year ending June 30 2021.
“Solid operational performance allowed PNG LNG to continue producing above nameplate capacity, despite curtailed volumes during the completion of a major planned maintenance program. Operated oil production grew by 3 per cent from the first half of 2020 with the Moran field outperforming,” Fredricson said.
“Our continued discipline towards capital management has bolstered our balance sheet. Introducing a level of commodity price hedging into our strategy reduces the company’s downside exposure to oil price volatility and, in the half, we were able to participate in the oil price upside above our hedged floor price of US$55 (K 189.45) per barrel.
“In support of our ambition to achieve net zero carbon emissions by 2050, we have implemented a carbon abatement programme and commenced programmes that aim to deliver a 30 per cent reduction in GHG intensity across our operated facilities by 2030.
“Our commitment to sustainability for all stakeholders has been reinforced with the release of an updated HSES Policy and Manual, the launch of our Human Rights and Sustainable Communities Policies and then registration of our first modern slavery statement.”
Statement/TheNational/PacificMiningWatch