Oz Oil Search Sees 42% Drop in Q4 Revenue

Sydney-listed Oil Search saw a 42% yr/yr drop in sales revenues in the three months to December 31 (Q4) as a result of lower average realised oil, gas and LNG prices, it said on January 27. The revenue increased 37% quarter/quarter thanks to a recovery in prices.

Oil Search’s Q4 revenue came in at US$259.5mn, compared with US$446.7mn a year earlier. LNG and gas revenue was US$198.4mn, down from US$336.5mn in the year-earlier period, the company said. Revenue for the full year was US$1.07bn, down 32% on the previous year.

Average realised LNG and gas prices dropped 34.6% yr/yr but rose 10.5% q/q. Total production during Q4 was up nearly 1% yr/yr at 7.06mn barrels of oil equivalent. Oil Search's output in the full year was 29.01mn boe, up 3.8% yr/yr.

The company expects 2021 to be a challenging year, forecasting that its production will decline to 25.5-28.5mn boe.

“Production for 2021 is expected to be lower than 2020 due to scheduled service programmes for the PNG LNG plant for trains one (deferred from 2020) and two. A major maintenance shutdown in the operated facilities, which occurs every four years, is also planned to coincide with the PNG LNG programmes to minimise impacts on production,” it said.