ASX:OSH

Stock Analysis Report

Executive Summary

Oil Search Limited explores for, develops, and produces oil and gas properties in Papua New Guinea, the United States, and Australia.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Oil Search's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

OSH

0.8%

AU Oil and Gas

0.1%

AU Market


1 Year Return

-10.5%

OSH

-7.2%

AU Oil and Gas

11.9%

AU Market

Return vs Industry: OSH underperformed the Australian Oil and Gas industry which returned -7.2% over the past year.

Return vs Market: OSH underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

OSHIndustryMarket
7 Day-0.7%0.8%0.1%
30 Day-7.3%-1.2%-1.1%
90 Day1.3%-1.1%-1.4%
1 Year-8.2%-10.5%-3.3%-7.2%18.5%11.9%
3 Year11.0%5.5%12.6%0.4%36.4%18.1%
5 Year-7.7%-15.9%-10.7%-26.9%50.9%16.7%

Price Volatility Vs. Market

How volatile is Oil Search's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Oil Search undervalued compared to its fair value and its price relative to the market?

17.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OSH (A$7.14) is trading above our estimate of fair value (A$5.18)

Significantly Below Fair Value: OSH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OSH is poor value based on its PE Ratio (17.6x) compared to the Oil and Gas industry average (8.9x).

PE vs Market: OSH is good value based on its PE Ratio (17.6x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: OSH is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: OSH is overvalued based on its PB Ratio (1.4x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Oil Search forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSH's forecast earnings growth (11.4% per year) is above the savings rate (2.3%).

Earnings vs Market: OSH's earnings (11.4% per year) are forecast to grow faster than the Australian market (10.2% per year).

High Growth Earnings: OSH's earnings are forecast to grow, but not significantly.

Revenue vs Market: OSH's revenue (3.7% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: OSH's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OSH's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Oil Search performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OSH's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: OSH's earnings growth over the past year (68.1%) exceeds its 5-year average (9.7% per year).

Earnings vs Industry: OSH earnings growth over the past year (68.1%) underperformed the Oil and Gas industry 68.1%.


Return on Equity

High ROE: OSH's Return on Equity (8.2%) is considered low.


Return on Assets

ROA vs Industry: OSH's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: OSH has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Oil Search's financial position?


Financial Position Analysis

Short Term Liabilities: OSH's short term assets ($855.8M) do not cover its short term liabilities ($1.2B)

Long Term Liabilities: OSH's short term assets (855.8M) do not cover its long term liabilities (5.1B)


Debt to Equity History and Analysis

Debt Level: OSH's debt to equity ratio (65.6%) is considered high

Reducing Debt: OSH's debt to equity ratio has reduced from 85.8% to 65.6% over the past 5 years.

Debt Coverage: OSH's debt is well covered by operating cash flow (30.3%).

Interest Coverage: OSH's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

Inventory Level: OSH has a high level of physical assets or inventory.

Debt Coverage by Assets: OSH's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Oil Search's current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.4%markettop25%5.6%industryaverage4.5%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OSH's dividend (2.75%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: OSH's dividend (2.75%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: OSH's dividend payments have been volatile in the past 10 years.

Growing Dividend: OSH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.5%), OSH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OSH's dividends in 3 years are forecast to be well covered by earnings (43.3% payout ratio).


Next Steps

Management

What is the CEO of Oil Search's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Peter Botten (64yo)

25yrs

Tenure

US$5,917,423

Compensation

Mr. Peter Robert Botten, AC, CBE, B.Sc., ARSM has been Managing Director of Oil Search Limited since October 28, 1994, overseeing its development into a major Australian Securities Exchange listed company. ...


CEO Compensation Analysis

Compensation vs. Market: Peter's total compensation ($USD5.92M) is about average for companies of similar size in the Australian market ($USD2.82M).

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.8yrs

Average Tenure

Experienced Management: OSH's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

64yo

Average Age

Experienced Board: OSH's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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Ownership Breakdown


Management Team

  • Keiran Wulff

    Executive VP & President of Alaska

    • Tenure: 1.6yrs
    • Compensation: US$1.91m
  • Peter Botten (64yo)

    MD & Executive Director

    • Tenure: 25yrs
    • Compensation: US$5.92m
  • Stephen Gardiner (60yo)

    Chief Financial Officer

    • Tenure: 6.9yrs
    • Compensation: US$1.40m
  • Ann Diamant

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Michael Herrett

    Executive General Manager of Human Resources - Health & Administration

    • Tenure: 0yrs
    • Compensation: US$1.10m
  • Ian Munro

    Executive General Manager of Gas

    • Tenure: 0yrs
    • Compensation: US$1.28m
  • Michael Drew

    Group Secretary and Executive VP of Corporate & General Counsel

    • Tenure: 5.8yrs
    • Compensation: US$939.84k
  • Beth White

    Executive Vice President of Development

    • Tenure: 0yrs
    • Compensation: US$934.01k
  • Bart Lismont

    Executive Vice President of Technology & Value Assurance

    • Tenure: 0.3yrs
  • Matthew Park

    Vice President of Communications & Media

    • Tenure: 0yrs

Board Members

  • Susan Cunningham (63yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: US$131.75k
  • Fiona Harris (58yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$190.76k
  • Agu Kantsler (68yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: US$182.99k
  • Eileen Doyle (64yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: US$185.46k
  • Rick Lee (69yo)

    Chairman of the Board

    • Tenure: 6.7yrs
    • Compensation: US$384.87k
  • Peter Botten (64yo)

    MD & Executive Director

    • Tenure: 25yrs
    • Compensation: US$5.92m
  • Kostas Constantinou (61yo)

    Non-Executive Director

    • Tenure: 17.5yrs
    • Compensation: US$173.25k
  • Mel Togolo (72yo)

    Non-Executive Director

    • Tenure: 3yrs
    • Compensation: US$173.82k
  • Bakheet Al Katheeri (44yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: US$133.65k

Company Information

Oil Search Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Oil Search Limited
  • Ticker: OSH
  • Exchange: ASX
  • Founded: 1929
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$10.810b
  • Shares outstanding: 1.52b
  • Website: https://www.oilsearch.com

Number of Employees


Location

  • Oil Search Limited
  • Harbourside East Building
  • Ground Floor
  • Port Moresby
  • Papua New Guinea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OISH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
OISDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
OSHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
OSHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
OISH.YOTCPK (Pink Sheets LLC)ADR EACH REPR 10 ORD PGK0.10(BNY)USUSDNov 1992

Biography

Oil Search Limited explores for, develops, and produces oil and gas properties in Papua New Guinea, the United States, and Australia. The company operates through PNG Business Unit, Exploration, and Other  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:32
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.