ASX-listed Oil Search quarterly revenue jumps

Tuesday, July 27, 2021

Australia-listed Oil Search on Tuesday reported a 38 percent jump in its quarterly revenue and reaffirmed its annual production forecast, as rebounding demand for travel and industrial activity from reopening of economies strengthen oil prices, Reuters reports.

Crude prices have soared by more than 50 percent this year, fueling optimism about global oil demand returning to its pre-pandemic levels by next year.

This boosted the Papua New Guinea-focused firm's operating revenue to US$366.2 million for the quarter ended June 30, up from US$266.2 million a year earlier.

Oil Search's average realised oil and condensate prices were at US$71.55 per barrel, a more than three-fold jump from a year ago, while realised LNG prices increased by 17.3 percent.

The company, which is a takeover target of Santos, said total production for the quarter came in at 6.59 million barrels of oil equivalent (mmboe), down from 7.29 mmboe a year earlier.

It maintained its 2021 production forecast of 25.5 mmboe 28.5 mmboe and production costs of US$10.50 per boe to US$11.50 per boe.