The Oil Search Limited (ASX: OSH) share price is edging higher today after the company released its interim result for the half year to 30 June 2020. At the time of writing, the Oil Search share price had climbed 2.67% higher to $3.08.
What was in the announcement?
Oil Search announced that it produced 14.7 million barrels of oil in the first half of 2020. According to the company, this was the best production by Oil Search since it was affected by an earthquake in 2018.
Production costs in the first half of 2020 were US$10.38 per barrel, production costs were down 20% compared to the first half of 2019.
Oil Search posted a net loss after tax of US$266 million in the half year to 30 June 2020. This came as the company experienced a US$151 million drop in revenue, which Oil Search stated reflected a 45% fall in its average realised oil price and a 15% fall in its realised gas and liquid natural gas prices. The company also had higher exploration expenses as a result of unsuccessful Gobe Footwall well and Kuukpick seismic acquisition costs. The company's profit was also affected by a non-cash impairment of US$260 million.
Oil Search had a core profit after tax, which excluded asset impairments of US$25 million in the first half of 2020.
According to Oil Search, its balance sheet was strengthened during the half and the company's liquidity increased to US$1.67 billion. The company had net debt of US$2.33 billion at 30 June 2020.
Oil Search released production guidance of 27.5 million to 29.5 million barrels of oil in 2020.
About the Oil Search share price
Oil Search is an oil and gas exploration and development company in Papua New Guinea. It was founded in 1929 and is listed on the ASX and the Port Moresby Stock Exchange.
In April, Oil Search raised US$700 million via an institutional placement and an entitlement offer to retail shareholders. The shares were issued at a price of $2.10 per share.
The Oil Search share price is up 70.17% from its 52-week low of $1.81, however, it is down 56.44% since the beginning of the year. The Oil Search share price is down 50.96% since this time last year.
