Oil Search has recorded a four-fold increase in half year profit due to higher oil and gas prices and cost reductions.
The Papua New Guinea-focused company made a net profit of $US129.1 million ($A162.7 million) in the six months to June 30, up from $US25.6 million a year earlier.
The gains were underpinned by a more than 25 per cent increase in average oil and gas prices, a 12 per cent decline in operating costs, and reduced depreciation and amortisation expenses, managing director Peter Botten said.
The company's operating margin improved to 74 per cent, while sales revenue increased 16 per cent, despite a dip in volumes.
Oil Search holds a 29 per cent stake in the ExxonMobil-operated PNG LNG project and P'nyang field, and also owns a 23 per cent stake in the Papua LNG project being developed by France's Total and the Elk-Antelope gas fields that will supply gas to it.
Mr Botten said he expects partners at both the projects to agree to co-ordinate the development of the LNG facilities and gas fields, to ensure billions of dollars worth of infrastructure is not duplicated, by the last quarter of 2017.
Based on the performance of the PNG LNG project, Oil Search narrowed its production guidance for the full year, with the bottom end of the range lifted from 28.5 to 29 million barrels of oil equivalent.
The top end of the range remains at 30.5 million boe.
While oil price forecasts had been revised down in line with market expectations, Mr Botten said the revision would not result in any asset impairments.
He said the company had improved its debt and cash position in the half year and would be cash flow positive with a breakeven oil price of $US29.40 a barrel, "significantly lower than the realised oil price of $US53.35 a barrel".
Oil Search shares were up 20.5 cents, or 3.2 per cent, to $6.595 at 1515 AEST.
OIL PRICES BOOST OIL SEARCH'S PROFIT:
* Half year net profit $US129.1m, from $US25.6m
* Revenue up 16pct to $US676.2m
* Interim dividend up 3 US cents to 4 US cents
