Executive Summary
Oil Search Limited explores for, develops, and produces oil and gas properties in Papua New Guinea, the United States, and Australia.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record average dividend payer.
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
Stable Share Price: OSH has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.1%
OSH
-0.6%
AU Oil and Gas
1.4%
AU Market
1 Year Return
-20.2%
OSH
-7.3%
AU Oil and Gas
16.1%
AU Market
Return vs Industry: OSH underperformed the Australian Oil and Gas industry which returned -7.3% over the past year.
Return vs Market: OSH underperformed the Australian Market which returned 16.1% over the past year.
Shareholder returns
| OSH | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | -0.6% | 1.4% |
| 30 Day | -17.7% | -8.7% | 0.5% |
| 90 Day | -12.3% | -4.3% | 4.8% |
| 1 Year | -18.1%-20.2% | -3.4%-7.3% | 21.2%16.1% |
| 3 Year | -5.3%-10.0% | 11.2%-0.1% | 37.0%18.6% |
| 5 Year | -14.8%-22.3% | 5.6%-13.2% | 51.7%17.8% |
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
4 days ago | Simply Wall St
Don't Sell Oil Search Limited (ASX:OSH) Before You Read This2 weeks ago | Simply Wall St
How Much is Oil Search Limited's (ASX:OSH) CEO Getting Paid?4 weeks ago | Simply Wall St
Did Oil Search's (ASX:OSH) Share Price Deserve to Gain 11%?Valuation
Is Oil Search undervalued compared to its fair value and its price relative to the market?
15.62x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: OSH (A$6.47) is trading above our estimate of fair value (A$4.26)
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 (15.6x) compared to the Oil and Gas industry average (8.8x).
PE vs Market: OSH is good value based on its PE Ratio (15.6x) compared to the Australian market (18.8x).
Price to Earnings Growth Ratio
PEG Ratio: OSH is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: OSH is overvalued based on its PB Ratio (1.3x) compared to the AU Oil and Gas industry average (1.2x).
Next Steps
Future Growth
How is Oil Search forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
12.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OSH's forecast earnings growth (12% per year) is above the savings rate (1.1%).
Earnings vs Market: OSH's earnings (12% per year) are forecast to grow faster than the Australian market (9.3% per year).
High Growth Earnings: OSH's earnings are forecast to grow, but not significantly.
Revenue vs Market: OSH's revenue (5% per year) is forecast to grow faster than the Australian market (4.1% per year).
High Growth Revenue: OSH's revenue (5% 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 (8.2%).
Next Steps
Past Performance
How has Oil Search performed over the past 5 years?
9.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OSH has high quality earnings.
Growing Profit Margin: OSH's current net profit margins (24.2%) are higher than last year (19%).
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%) exceeded the Oil and Gas industry 58.2%.
Return on Equity
High ROE: OSH's Return on Equity (8.2%) is considered low.
Return on Assets
Return on Capital Employed
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 (60.2%) is considered high.
Reducing Debt: OSH's debt to equity ratio has reduced from 85.8% to 60.2% over the past 5 years.
Debt Coverage: OSH's debt is well covered by operating cash flow (33%).
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?
3.11%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: OSH's dividend (3.11%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).
High Dividend: OSH's dividend (3.11%) is low compared to the top 25% of dividend payers in the Australian market (5.5%).
Stability and Growth of Payments
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 (42.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.1yrs
Average management tenure
CEO
Peter Botten (64yo)
25.3yrs
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 above average for companies of similar size in the Australian market ($USD2.80M).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 25.3yrs | US$5.92m | 0.20% $20.1m | |
| Chief Financial Officer | 7.3yrs | US$1.40m | 0.077% $7.6m | |
| Executive General Manager of Human Resources - Health & Administration | 0yrs | US$1.10m | 0.014% $1.4m | |
| Group Secretary and Executive VP of Corporate & General Counsel | 6.1yrs | US$939.84k | 0.0036% $355.1k | |
| Executive General Manager of Gas | 0yrs | US$1.28m | 0.0061% $600.8k | |
| Executive VP & President of Alaska | 1.9yrs | US$1.91m | 0.011% $1.1m | |
| Executive Vice President of Development | 0yrs | US$934.01k | 0.0068% $670.8k | |
| Executive Vice President of Technology & Value Assurance | 0.6yrs | no data | no data | |
| Senior Vice President of Investor Relations | 0yrs | no data | no data | |
| Vice President of Communications & Media | 0yrs | no data | no data |
6.1yrs
Average Tenure
Experienced Management: OSH's management team is seasoned and experienced (6.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 25.3yrs | US$5.92m | 0.20% $20.1m | |
| Non-Executive Director | 1.9yrs | US$131.75k | no data | |
| Non-Executive Director | 3.1yrs | US$190.76k | 0.0042% $413.3k | |
| Non-Executive Director | 9.6yrs | US$182.99k | 0.0060% $591.9k | |
| Non-Executive Director | 4yrs | US$185.46k | 0.0047% $466.6k | |
| Chairman of the Board | 7yrs | US$384.87k | 0.013% $1.3m | |
| Non-Executive Director | 17.8yrs | US$173.25k | 0.00066% $65.1k | |
| Non-Executive Director | 3.3yrs | US$173.82k | no data | |
| Non-Executive Director | 1.9yrs | US$133.65k | no data |
4.0yrs
Average Tenure
64yo
Average Age
Experienced Board: OSH's board of directors are considered experienced (4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$9.865b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| OISH.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| OIS | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| OSH | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| OSH | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| OISH.Y | OTCPK (Pink Sheets LLC) | ADR EACH REPR 10 ORD PGK0.10(BNY) | US | USD | Nov 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 10:36 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.