Oil Search has reported a near-40 per cent fall in half-year net profit, hurt by lower output and higher costs after an earthquake in Papua New Guinea halted production at a liquefied natural gas (LNG) project for six weeks.
Net profit fell to $US79.2 million for the six months to June, from $US129.1 million last year, but was still ahead of analyst expectations.
Oil Search is a partner in the ExxonMobil-operated PNG LNG project, where production was halted after a 7.5 magnitude earthquake hit the country's rugged highlands on February 26, triggering landslides, flattening buildings and killing more than 145 people.
The energy producer cut its full-year production guidance in April to 23-26 million barrels of oil equivalent (mmboe) and in July said production was heading towards the upper end of that guidance.
On Tuesday, it upgraded its 2018 output guidance to 24-26 mmboe, helped by a recovery in the performance of the PNG LNG plant, which resumed production in mid-April.
Total unit production costs for the half year to June 30 jumped to $US14.04 per barrel, up from $US8.52/b last year, due to weaker output, the company said.
Oil Search declared an interim dividend of 2 US cents a share, down from 4 cents a year ago.
QUAKE IMPACTS OIL SEARCH HY
* First-half net profit down 39pct to $US79.2m
* Revenue down 18pct to $US557.8m
* Unfranked interim dividend 2.0 US cents/share vs 4.0 US cents
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