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Oil Search

ASX:OSH
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OSH
ASX
A$12B
Market Cap
  1. Home
  2. AU
  3. Energy
Company description

Oil Search Limited explores for, develops, and produces oil and gas properties in Papua New Guinea, the United States, and Australia. The last earnings update was 64 days ago. More info.


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OSH Share Price and Events
7 Day Returns
1.9%
ASX:OSH
0.4%
AU Oil and Gas
-0%
AU Market
1 Year Returns
5%
ASX:OSH
4.4%
AU Oil and Gas
4.6%
AU Market
OSH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Oil Search (OSH) 1.9% -0.8% 9.3% 5% 18.8% -7.8%
AU Oil and Gas 0.4% -1.5% 6% 4.4% 30.5% -32.3%
AU Market -0% 1% 6.9% 4.6% 18.2% 4.8%
1 Year Return vs Industry and Market
Price Volatility
OSH
Industry
5yr Volatility vs Market

OSH Value

 Is Oil Search undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Oil Search to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Oil Search.

ASX:OSH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:OSH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.958 (1 + (1- 30%) (39.1%))
1.148
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.148 * 5.96%)
9.15%

Discounted Cash Flow Calculation for ASX:OSH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Oil Search is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:OSH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.15%)
2019 549.46 Analyst x3 503.39
2020 553.45 Analyst x3 464.52
2021 555.74 Analyst x2 427.34
2022 561.21 Est @ 0.98% 395.35
2023 568.96 Est @ 1.38% 367.21
2024 578.41 Est @ 1.66% 342.00
2025 589.15 Est @ 1.86% 319.14
2026 600.89 Est @ 1.99% 298.21
2027 613.44 Est @ 2.09% 278.91
2028 626.66 Est @ 2.16% 261.03
Present value of next 10 years cash flows $3,657.10
ASX:OSH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $626.66 × (1 + 2.31%) ÷ (9.15% – 2.31%)
$9,372.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,372.59 ÷ (1 + 9.15%)10
$3,904.04
ASX:OSH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,657.10 + $3,904.04
$7,561.13
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,561.13 / 1,523.63
$4.96
ASX:OSH Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:OSH)
1.402
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $4.96 x 1.402
A$6.96
Value per share (AUD) From above. A$6.96
Current discount Discount to share price of A$8.20
= -1 x (A$8.20 - A$6.96) / A$6.96
-17.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Oil Search is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Oil Search's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Oil Search's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:OSH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.22
ASX:OSH Share Price ** ASX (2019-04-23) in AUD A$8.2
ASX:OSH Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.713 $5.85
Australia Oil and Gas Industry PE Ratio Median Figure of 23 Publicly-Listed Oil and Gas Companies 7.92x
Australia Market PE Ratio Median Figure of 544 Publicly-Listed Companies 16.14x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Oil Search.

ASX:OSH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:OSH Share Price ÷ EPS (both in USD)

= 5.85 ÷ 0.22

26.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Oil Search is overvalued based on earnings compared to the AU Oil and Gas industry average.
  • Oil Search is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Oil Search's expected growth come at a high price?
Raw Data
ASX:OSH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
7.3%per year
Australia Oil and Gas Industry PEG Ratio Median Figure of 17 Publicly-Listed Oil and Gas Companies 0.24x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.35x

*Line of best fit is calculated by linear regression .

ASX:OSH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.12x ÷ 7.3%

3.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Oil Search is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Oil Search's assets?
Raw Data
ASX:OSH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $3.39
ASX:OSH Share Price * ASX (2019-04-23) in AUD A$8.2
ASX:OSH Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.713 $5.85
Australia Oil and Gas Industry PB Ratio Median Figure of 145 Publicly-Listed Oil and Gas Companies 1.31x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.67x
ASX:OSH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:OSH Share Price ÷ Book Value per Share (both in USD)

= 5.85 ÷ 3.39

1.73x

* Primary Listing of Oil Search.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Oil Search is overvalued based on assets compared to the AU Oil and Gas industry average.
X
Value checks
We assess Oil Search's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Oil Search has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

OSH Future Performance

 How is Oil Search expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Oil Search expected to grow at an attractive rate?
  • Oil Search's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Oil Search's earnings growth is expected to exceed the Australia market average.
  • Oil Search's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:OSH Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:OSH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 7.3%
ASX:OSH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 3.2%
Australia Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 4.2%
Australia Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:OSH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:OSH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,830 1,037 486 2
2022-12-31 1,686 860 474 2
2021-12-31 1,761 984 555 11
2020-12-31 1,776 978 547 14
2019-12-31 1,745 935 490 14
ASX:OSH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,536 855 341
2018-09-30 1,432 747 297
2018-06-30 1,328 640 252
2018-03-31 1,387 742 277
2017-12-31 1,446 844 302
2017-09-30 1,389 789 248
2017-06-30 1,331 735 193
2017-03-31 1,284 645 142
2016-12-31 1,236 555 90
2016-09-30 1,269 615 -76
2016-06-30 1,303 675 -241
2016-03-31 1,444 814 -140

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Oil Search's earnings are expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
  • Oil Search's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:OSH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Oil Search Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:OSH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.32 0.42 0.18 3.00
2022-12-31 0.31 0.38 0.24 3.00
2021-12-31 0.37 0.49 0.27 8.00
2020-12-31 0.36 0.47 0.27 11.00
2019-12-31 0.32 0.38 0.25 11.00
ASX:OSH Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.22
2018-09-30 0.19
2018-06-30 0.17
2018-03-31 0.18
2017-12-31 0.20
2017-09-30 0.16
2017-06-30 0.13
2017-03-31 0.09
2016-12-31 0.06
2016-09-30 -0.05
2016-06-30 -0.16
2016-03-31 -0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Oil Search is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Oil Search's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Oil Search has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

OSH Past Performance

  How has Oil Search performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Oil Search's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Oil Search's year on year earnings growth rate has been positive over the past 5 years.
  • Oil Search's 1-year earnings growth exceeds its 5-year average (12.9% vs 0.2%)
  • Oil Search's earnings growth has not exceeded the AU Oil and Gas industry average in the past year (12.9% vs 12.9%).
Earnings and Revenue History
Oil Search's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Oil Search Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:OSH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,535.76 341.20 102.42
2018-09-30 1,431.67 296.68 78.37
2018-06-30 1,327.59 252.15 54.32
2018-03-31 1,386.79 277.12 62.67
2017-12-31 1,446.00 302.09 71.01
2017-09-30 1,388.65 247.72 80.31
2017-06-30 1,331.30 193.35 89.61
2017-03-31 1,283.60 141.57 90.36
2016-12-31 1,235.91 89.80 91.12
2016-09-30 1,269.33 -75.77 105.08
2016-06-30 1,302.75 -241.34 119.04
2016-03-31 1,444.24 -140.36 110.19
2015-12-31 1,585.73 -39.38 101.34
2015-09-30 1,774.93 194.43 136.24
2015-06-30 1,964.14 428.24 171.13
2015-03-31 1,787.25 390.73 165.51
2014-12-31 1,610.37 353.22 159.89
2014-09-30 1,252.81 298.97 150.28
2014-06-30 895.26 244.73 140.66
2014-03-31 830.76 225.22 139.42
2013-12-31 766.27 205.72 138.18
2013-09-30 736.67 193.79 120.01
2013-06-30 707.07 181.86 101.85
2013-03-31 715.84 178.85 122.27
2012-12-31 724.62 175.83 142.69
2012-09-30 742.45 185.63 122.50
2012-06-30 760.28 195.43 102.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Oil Search has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Oil Search used its assets less efficiently than the AU Oil and Gas industry average last year based on Return on Assets.
  • Oil Search has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Oil Search's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Oil Search has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

OSH Health

 How is Oil Search's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Oil Search's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Oil Search is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Oil Search's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Oil Search's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Oil Search Company Filings, last reported 3 months ago.

ASX:OSH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,165.62 3,424.77 600.56
2018-09-30 5,165.62 3,424.77 600.56
2018-06-30 4,928.53 3,592.08 412.15
2018-03-31 4,928.53 3,592.08 412.15
2017-12-31 4,937.75 3,758.91 1,015.25
2017-09-30 4,937.75 3,758.91 1,015.25
2017-06-30 4,820.39 3,920.48 973.81
2017-03-31 4,820.39 3,920.48 973.81
2016-12-31 4,725.32 4,074.78 862.75
2016-09-30 4,725.32 4,074.78 862.75
2016-06-30 4,676.63 4,220.38 779.73
2016-03-31 4,676.63 4,220.38 779.73
2015-12-31 4,709.36 4,302.65 910.48
2015-09-30 4,709.36 4,302.65 910.48
2015-06-30 5,065.44 4,360.47 842.96
2015-03-31 5,065.44 4,360.47 842.96
2014-12-31 5,025.48 4,421.07 960.17
2014-09-30 5,025.48 4,421.07 960.17
2014-06-30 4,829.88 4,143.02 367.78
2014-03-31 4,829.88 4,143.02 367.78
2013-12-31 3,421.05 4,024.42 209.66
2013-09-30 3,421.05 4,024.42 209.66
2013-06-30 3,324.28 3,307.85 292.13
2013-03-31 3,324.28 3,307.85 292.13
2012-12-31 3,208.35 2,866.05 488.27
2012-09-30 3,208.35 2,866.05 488.27
2012-06-30 3,133.60 2,349.17 852.73
  • Oil Search's level of debt (66.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (117.1% vs 66.3% today).
  • Debt is well covered by operating cash flow (25%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
X
Financial health checks
We assess Oil Search's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Oil Search has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

OSH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.8%
Current annual income from Oil Search dividends. Estimated to be 2.41% next year.
If you bought A$2,000 of Oil Search shares you are expected to receive A$36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Oil Search's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.52%).
  • Oil Search's dividend is below the markets top 25% of dividend payers in Australia (5.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:OSH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Australia Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 4.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:OSH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.12 3.00
2022-12-31 0.12 3.00
2021-12-31 0.14 12.00
2020-12-31 0.15 15.00
2019-12-31 0.14 15.00
ASX:OSH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-08 0.105 1.847
2018-02-19 0.095 1.610
2017-08-21 0.065 1.146
2017-02-20 0.035 0.661
2016-08-23 0.020 0.384
2016-02-22 0.100 1.937
2015-02-23 0.160 3.004
2014-09-11 0.040 0.585
2014-03-14 0.040 0.466
2013-08-19 0.040 0.523
2013-02-25 0.040 0.526
2012-08-21 0.040 0.527
2012-08-20 0.040 0.532
2012-02-20 0.040 0.566
2011-08-23 0.040 0.626
2011-02-22 0.040 0.560
2011-02-21 0.040 0.567
2010-08-24 0.040 0.627
2010-02-23 0.040 0.788
2009-08-25 0.040 0.754
2009-04-24 0.080 1.857

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Oil Search's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Oil Search's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Oil Search afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Oil Search has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

OSH Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Peter Botten
COMPENSATION $5,917,423
AGE 63
TENURE AS CEO 24.5 years
CEO Bio

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. Mr. Botten previously filled both exploration and general manager roles in Oil Search Limited since joining in 1992. Mr. Botten has extensive worldwide experience in the oil and gas business, previously holding various senior technical and managerial positions in a number of listed and government owned organisations. Mr. Botten is a former President of the Papua New Guinea Chamber of Mines and Petroleum. He is Chairman of the Oil Search Foundation, Business for Development Australia, the Hela Provincial Health Authority and the National Football Stadium Trust in Port Moresby. He is a Council Member of the Australia PNG Business Council. He has been Executive Director at Oil Search Ltd since March 17, 1999. Mr. Botten is an Independent Non Executive Director of AGL Energy Limited since October 2016. He has a Bachelor of Science in Geology from the Royal School of Mines at London's Imperial College.

CEO Compensation
  • Peter's compensation has been consistent with company performance over the past year.
  • Peter's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Oil Search management team in years:

5.3
Average Tenure
  • The average tenure for the Oil Search management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Peter Botten

TITLE
MD & Executive Director
COMPENSATION
$6M
AGE
63
TENURE
24.5 yrs

Stephen Gardiner

TITLE
CFO & Group Secretary
COMPENSATION
$1M
AGE
59
TENURE
6.4 yrs

Paul Cholakos

TITLE
Executive General Manager of Technical Services
COMPENSATION
$1M
TENURE
4.2 yrs

Michael Herrett

TITLE
Executive General Manager of Human Resources - Health & Administration
COMPENSATION
$1M

Michael Drew

TITLE
Executive GM & General Counsel
COMPENSATION
$940K
TENURE
5.3 yrs

Ian Munro

TITLE
Executive General Manager of Gas
COMPENSATION
$1M

Keiran Wulff

TITLE
Executive GM & President of Alaska
COMPENSATION
$2M
TENURE
1.1 yrs

Ann Diamant

TITLE
General Manager of Investor Relations & Communications
Board of Directors Tenure

Average tenure and age of the Oil Search board of directors in years:

3.2
Average Tenure
63
Average Age
  • The tenure for the Oil Search board of directors is about average.
Board of Directors

Rick Lee

TITLE
Chairman of the Board
COMPENSATION
$385K
AGE
68
TENURE
6.2 yrs

Peter Botten

TITLE
MD & Executive Director
COMPENSATION
$6M
AGE
63
TENURE
20.1 yrs

Agu Kantsler

TITLE
Non-Executive Director
COMPENSATION
$183K
AGE
67
TENURE
8.8 yrs

Fiona Harris

TITLE
Non-Executive Director
COMPENSATION
$191K
AGE
57
TENURE
2.3 yrs

Eileen Doyle

TITLE
Non-Executive Director
COMPENSATION
$185K
AGE
63
TENURE
3.2 yrs

Kostas Constantinou

TITLE
Non-Executive Director
COMPENSATION
$173K
AGE
60
TENURE
17 yrs

Mel Togolo

TITLE
Non-Executive Director
COMPENSATION
$174K
AGE
71
TENURE
2.5 yrs

Susan Cunningham

TITLE
Non-Executive Director
COMPENSATION
$132K
AGE
62
TENURE
1.1 yrs

Bakheet Al Katheeri

TITLE
Non-Executive Director
COMPENSATION
$134K
AGE
43
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Oil Search insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
09. Apr 19 Sell FIL Limited Company 29. Mar 19 29. Mar 19 -131,191 A$7.85 A$-1,029,849
09. Apr 19 Buy FIL Limited Company 11. Jan 19 04. Apr 19 2,437,480 A$8.34 A$0
04. Mar 19 Buy Kostas Constantinou Individual 27. Feb 19 27. Feb 19 10,000 A$8.36 A$83,600
31. Jan 19 Sell Capital Group International Inc. Company 31. Oct 18 30. Jan 19 -103,924 A$7.59 A$-788,981
31. Jan 19 Buy Capital Group International Inc. Company 31. Oct 18 30. Jan 19 85,829 A$7.59 A$651,605
31. Jan 19 Buy Capital Research and Management Company Company 31. Oct 18 30. Jan 19 15,585,952 A$7.59 A$118,326,980
31. Jan 19 Sell Perpetual Limited Company 21. Dec 18 29. Jan 19 -15,558,128 A$7.66 A$-119,251,258
31. Jan 19 Buy Perpetual Limited Company 20. Dec 18 20. Dec 18 1,200,000 A$6.84 A$8,208,027
14. Jan 19 Sell FIL Limited Company 19. Jun 18 10. Dec 18 -1,797,104 A$9.12 A$-16,383,496
14. Jan 19 Buy FIL Limited Company 19. Jun 18 10. Jan 19 17,960,155 A$9.21 A$165,422,013
21. Dec 18 Sell Perpetual Limited Company 25. Oct 18 11. Dec 18 -1,342,745 A$7.68 A$-10,312,562
21. Dec 18 Buy Perpetual Limited Company 19. Sep 18 19. Dec 18 22,112,136 A$8.18 A$180,913,925
31. Oct 18 Sell Capital Research and Management Company Company 29. Oct 18 30. Oct 18 -20,473,007 A$7.65 A$-156,604,187
30. Oct 18 Buy Capital Group International Inc. Company 13. Jul 18 26. Oct 18 466,281 A$8.52 A$3,974,579
30. Oct 18 Sell Capital Research and Management Company Company 13. Jul 18 26. Oct 18 -15,798,450 A$8.52 A$-134,665,992
15. Jul 18 Buy Capital Group International Inc. Company 16. May 18 12. Jul 18 542,462 A$8.93 A$4,846,844
15. Jul 18 Buy Capital Research and Management Company Company 16. May 18 12. Jul 18 15,217,031 A$8.93 A$135,962,660
20. Jun 18 Buy FIL Limited Company 21. Feb 18 18. Jun 18 6,146,855 A$8.50 A$52,248,269
18. May 18 Sell Peter Botten Individual 14. May 18 15. May 18 -310,000 A$8.51 A$-2,638,100
16. May 18 Sell Capital Group International Inc. Company 24. Aug 17 15. May 18 -145,143 A$7.45 A$-1,080,604
16. May 18 Buy Capital Group International Inc. Company 24. Aug 17 15. May 18 2,993,058 A$7.45 A$22,283,617
16. May 18 Buy Capital Research and Management Company Company 24. Aug 17 15. May 18 12,704,376 A$7.45 A$94,585,355
X
Management checks
We assess Oil Search's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Oil Search has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

OSH News

Simply Wall St News

What Kind Of Shareholder Appears On The Oil Search Limited's (ASX:OSH) Shareholder Register?

If you want to know who really controls Oil Search Limited (ASX:OSH), then you'll have to look at the makeup of its share registry. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We also tend to see lower insider ownership in companies that were previously publicly owned.

Simply Wall St -

Investors Who Bought Oil Search (ASX:OSH) Shares Three Years Ago Are Now Up 20%

Unfortunately for shareholders, while the Oil Search Limited (ASX:OSH) share price is up 20% in the last three years, that falls short of the market return. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During three years of share price growth, Oil Search moved from a loss to profitability.

Simply Wall St -

Is Oil Search Limited (ASX:OSH) An Attractive Dividend Stock?

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, Oil Search Limited (ASX:OSH) has paid dividends to shareholders, and these days it yields 1.8%. … 5 questions I ask before picking a dividend stock

Simply Wall St -

Is Oil Search Limited's (ASX:OSH) CEO Overpaid Relative To Its Peers?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Peter Botten's Compensation Compare With Similar Sized Companies. … According to our data, Oil Search Limited has a market capitalization of AU$12b, and pays its CEO total annual compensation worth US$5.9m.

Simply Wall St -

4 Days Left Until Oil Search Limited (ASX:OSH) Trades Ex-Dividend

To qualify for the dividend check of US$0.085 per share, investors must have owned the shares prior to 05 March 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

What Should You Know About Oil Search Limited's (ASX:OSH) Growth?

Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … The most recent earnings release Oil Search Limited's (ASX:OSH) announced in December 2018a

Simply Wall St -

What Does Oil Search Limited's (ASX:OSH) P/E Ratio Tell You?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Oil Search has a price to earnings ratio of 33.11, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Is Oil Search Limited (ASX:OSH) Investing Effectively In Its Business?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Will Oil Search Limited's (ASX:OSH) Earnings Grow In The Next 12 Months?

After Oil Search Limited's (ASX:OSH) earnings announcement in June 2018, … with profits predicted to ramp up by an impressive 86% next year,

Simply Wall St -

Read This Before Buying Oil Search Limited (ASX:OSH) Shares

So before you buy or sell Oil Search Limited (ASX:OSH), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … So we know that an insider sold shares at around the present share price of AU$7.16.

Simply Wall St -

OSH Company Info

Description

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 segments. It is involved in the development, production, and sale of liquefied natural gas, crude oil, natural gas, condensate, naphtha, and other refined products; and power generation activities. As of December 31, 2018, the company’s proved and probable reserves, and contingent resources comprised 253.5 million barrels of oil and condensate; and 6,742.2 billion cubic feet of gas. Oil Search Limited was founded in 1929 and is based in Port Moresby, Papua New Guinea.

Details
Name: Oil Search Limited
OSH
Exchange: ASX
Founded: 1929
A$12,280,467,407
1,523,631,192
Website: http://www.oilsearch.com
Address: Oil Search Limited
Harbourside East Building,
Ground Floor,
Port Moresby,
Papua New Guinea
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX OSH Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK OISH.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB OIS Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
CHIA OSH Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
OTCPK OISH.Y ADR EACH REPR 10 ORD PGK0.10(BNY) Pink Sheets LLC US USD 19. Nov 1992
Number of employees
Current staff
Staff numbers
1,410
Oil Search employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 10:32
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/22
Last earnings filing: 2019/02/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.