Timing differences with LNG shipments and weak oil and gas prices saw first-quarter revenues fall 21% for Oil Search despite a sharp rebound in production from the earthquake hit the first quarter of 2018.
The company – whose main focus remains LNG and oil assets in Papua New Guinea – reported revenue for the three months to the end of March of $US398.1 million ($A555.15 million).
That was up 35% or $US103 million from the March quarter of 2018 as output recovered.
Production surged 50% or 2.4 million barrels of oil equivalent from the first quarter of last year (when it totaled 4.84 million barrels of oil equivalent) and 3% from the December quarter to 7.25 million barrels of oil equivalent.
The company’s key focus is the expansion of the PNG LNG project – with a sign-off next year in the offing for the venture which is PNG’s’s top revenue earner.
Oil Search it said a gas agreement for the new P’nyang field is targeted for signing in the second quarter. It will feed gas to a third production train that Exxon Mobil plans to add at PNG LNG.
For the March quarter, realised oil and condensate prices fell 3.0 percent and the realised LNG and gas price was 7.0 percent lower than in the fourth quarter of 2018, Oil Search said.
Directors said “average oil and condensate price realised during the quarter was US$62.35 per barrel, 3% lower than the previous quarter, reflecting weaker global oil prices. The average price realised for LNG and gas sales decreased 7% to US$10.15/mmBtu, reflecting the approximate three-month lag between the spot oil price and LNG contract prices.”
The shares fell 0.3% to $8.05.
