The Oil Search Limited (ASX: OSH) share price is marginally lower today after the LNG producer flagged that September quarter production and revenue had fallen significantly on the prior quarter.
The group blamed the disappointing quarter on an issue at its PNG LNG Project impacting the rate at which liquid gas could be loaded due to a damaged mooring chain at an offshore loading facility. This reportedly hurt liquid loading rates through August and September.
As a result Oil Search has downgraded full year production guidance to between 27 mmboe to 29 mmboe (million barrels of oil equivalent), compared to between 28 mmboe and 31 mmboe originally. Unit production costs are now forecast to be between US$12/boe to US$13/boe.
The group also lowered capital expenditure guidance as certain investments have been delayed, while others have been reclassified.
Oil Search shares are down 16% over the past year on the back of its operational hiccups. Other leading players for LNG bulls to consider include Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO).
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
You can find Tom on Twitter @tommyr345
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
- On a serendipitous day, Tom Richardson is leaving the building – December 17, 2019 11:55am
- Why Aerometrex shares have doubled their IPO price – December 16, 2019 4:32pm
- Why the National Veterinary Care share price is going nuts today – December 16, 2019 3:39pm