Oil Search reports US$139m profit

 OIL Search Ltd has recorded a net profit of US$139 million (about K478.81 million) for the six months ending June 30, 2021.

The company said it was the highest free cash flow since the 2018 PNG earthquake.

The board also declared an interim dividend of US$3.3 (K11.36) per share, representing a payout of 49 per cent, in line with Oil Search’s dividend policy.

Acting chief executive officer Peter Fredricson said the result pointed to the resilient operational performance from the business as well as recovering conditions in the market.

“Our half year result speaks to the sustained and focused efforts of our people across every part of the business,” Fredrickson said.

“Importantly, it demonstrates that we are successfully executing on our strategy, paving a clear path for the delivery of expansion and growth projects through the remainder of 2021 and into 2022.”

He said while the first half of 2021 had been a challenging period for the business, the company’s world class assets and management team provided a strong foundation for creating ongoing value for shareholders.

“Our resilient operations are expected to continue to deliver strong cash flows in years to come and we remain focused on commercialising our 2C resource base whilst appropriately managing our risks and remaining disciplined in our allocation of capital,” Fredrickson said.

“We are focused on the management of costs across our operations as we continue to deliver on our purpose – delivering low cost, high value energy that meets society’s needs.

“Oil Search’s strong safety performance through the first half of 2021 underscores our ongoing commitment to the safety and wellbeing of our people.

“We have not taken our eye off the ongoing risks of the Covid-19 to our people, operations and communities and we continue to assess and adapt our protocols as circumstances require.”

The National / Pacific Mining Watch

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