A near tripling of production has helped Oil Search achieve a 72 per cent rise in annual profit, even with a massive charge related to falling oil prices.
The oil and gas explorer made a net profit of $US353 million in 2014, up from $US206 million in 2013, as production nearly tripled and revenue more than doubled.
Production was boosted by the opening of its LNG project in Papua New Guinea, where the company is focused on further growth opportunities.
But Oil Search has reduced the value of its exploration assets by $US130 million because of falling oil prices, which recently plunged to a six year low.
Those falls have also led to a 20 per cent cut to its expected expenditure in 2015, and a further 20 per cent cut to production costs, including a freeze on new hiring and new arrangements with contractors and suppliers.
Managing director Peter Botten said Oil Search was financially and operationally strong enough to weather a long period of lower prices.
"Our gas growth opportunities in PNG, where we have a major competitive advantage, are robust, while the long term legacy cash flows from the PNG LNG project will continue to bolster the company's balance sheet," he said.
Oil Search quadrupled its unfranked final dividend and will also pay a special dividend of four US cents per share, taking its full year dividends to 14 US cents, up from four US cents in 2013.
Oil Search shares closed one cent higher at $8.29.
OIL SEARCH OVERCOMES OIL PRICE PLUNGE
* Net profit of $US353m, up 72 pct from $US206m in 2013
* Revenue of $US1.61b, up from $US766m
* Final dividend of eight US cents, up from two US cents
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