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
Average dividend payer with mediocre balance sheet.
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
4.1%
OSH
4.4%
AU Oil and Gas
1.9%
AU Market
1 Year Return
-56.6%
OSH
-31.3%
AU Oil and Gas
-8.4%
AU Market
Return vs Industry: OSH underperformed the Australian Oil and Gas industry which returned -31.3% over the past year.
Return vs Market: OSH underperformed the Australian Market which returned -8.4% over the past year.
Shareholder returns
| OSH | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.1% | 4.4% | 1.9% |
| 30 Day | 1.3% | -0.5% | 1.7% |
| 90 Day | 4.1% | 3.5% | 13.2% |
| 1 Year | -54.4%-56.6% | -28.3%-31.3% | -4.6%-8.4% |
| 3 Year | -48.4%-52.6% | -11.3%-20.8% | 19.4%3.7% |
| 5 Year | -49.3%-54.6% | -15.2%-30.5% | 39.5%9.4% |
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
2 weeks ago | Simply Wall St
Read This Before Buying Oil Search Limited (ASX:OSH) For Its Dividend1 month ago | Simply Wall St
Here's Why We Don't Think Oil Search's (ASX:OSH) Statutory Earnings Reflect Its Underlying Earnings Potential2 months ago | Simply Wall St
Need To Know: Oil Search Limited (ASX:OSH) Insiders Have Been Buying SharesValuation
Is Oil Search undervalued compared to its fair value and its price relative to the market?
10.64x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: OSH (A$3.04) is trading above our estimate of fair value (A$0.51)
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 (10.6x) compared to the AU Oil and Gas industry average (8.5x).
PE vs Market: OSH is good value based on its PE Ratio (10.6x) compared to the Australian market (16x).
Price to Earnings Growth Ratio
PEG Ratio: OSH is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: OSH is good value based on its PB Ratio (0.6x) compared to the AU Oil and Gas industry average (1.1x).
Next Steps
Future Growth
How is Oil Search forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
9.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OSH's forecast earnings growth (9% per year) is above the savings rate (2.3%).
Earnings vs Market: OSH's earnings (9% per year) are forecast to grow slower than the Australian market (14.7% per year).
High Growth Earnings: OSH's earnings are forecast to grow, but not significantly.
Revenue vs Market: OSH's revenue (0.3% per year) is forecast to grow slower than the Australian market (4.1% per year).
High Growth Revenue: OSH's revenue (0.3% 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 (3%).
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Past Performance
How has Oil Search performed over the past 5 years?
17.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OSH has high quality earnings.
Growing Profit Margin: OSH's current net profit margins (19.7%) are lower than last year (22.2%).
Past Earnings Growth Analysis
Earnings Trend: OSH's earnings have grown by 17.3% per year over the past 5 years.
Accelerating Growth: OSH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: OSH had negative earnings growth (-8.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (-15.6%).
Return on Equity
High ROE: OSH's Return on Equity (5.9%) is considered low.
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Financial Health
How is Oil Search's financial position?
Financial Position Analysis
Short Term Liabilities: OSH's short term assets ($792.2M) do not cover its short term liabilities ($1.1B).
Long Term Liabilities: OSH's short term assets ($792.2M) do not cover its long term liabilities ($5.2B).
Debt to Equity History and Analysis
Debt Level: OSH's debt to equity ratio (64.3%) is considered high.
Reducing Debt: OSH's debt to equity ratio has reduced from 87.8% to 64.3% over the past 5 years.
Debt Coverage: OSH's debt is well covered by operating cash flow (22.3%).
Interest Coverage: OSH's interest payments on its debt are well covered by EBIT (3x coverage).
Balance Sheet
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Dividend
What is Oil Search current dividend yield, its reliability and sustainability?
4.35%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OSH's dividend (4.35%) is higher than the bottom 25% of dividend payers in the Australian market (2.47%).
High Dividend: OSH's dividend (4.35%) is low compared to the top 25% of dividend payers in the Australian market (6.61%).
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 (46.4%), 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 (43.4% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Keiran Wulff
0.50
Tenure
US$1,960,488
Compensation
Dr. Keiran John Wulff, B.Sc, Grad Dip, PhD., BASc in Petroleum Geology, has been Managing Director and Director of Oil Search Limited since February 25, 2020. Dr. Wulff served as Executive Vice President a ...
CEO Compensation Analysis
Compensation vs Market: Keiran's total compensation ($USD1.96M) is about average for companies of similar size in the Australian market ($USD2.28M).
Compensation vs Earnings: Keiran's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director | 0.50yr | US$1.96m | 0.017% $ 1.0m | |
| Chief Financial Officer | 7.75yrs | US$1.39m | 0.030% $ 1.9m | |
| Executive Vice President of Technology & Value Assurance | 1.08yrs | US$313.55k | no data | |
| Group Secretary and Executive VP of Corporate & General Counsel | 6.58yrs | US$1.20m | 0.0040% $ 249.5k | |
| Executive Vice President of Portfolio Management | no data | US$1.19m | 0.0040% $ 255.8k | |
| Executive Vice President of Sustainability & Technology | no data | US$1.08m | 0.0069% $ 435.9k | |
| Senior Vice President of Investor Relations | no data | no data | no data | |
| Vice President of Communications & Media | no data | no data | no data | |
| Executive Vice President of PNG Business Unit | 1.08yrs | no data | no data | |
| Chief Operating Officer of PNG Business Unit | 1.08yrs | no data | no data | |
| President of Alaska | no data | no data | no data | |
| Communications Manager | 18yrs | no data | no data |
1.1yrs
Average Tenure
Experienced Management: OSH's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Director | 0.50yr | US$1.96m | 0.017% $ 1.0m | |
| Independent Non-Executive Director | 2.42yrs | US$201.09k | 0.0014% $ 91.0k | |
| Independent Non-Executive Director | 3.58yrs | US$210.15k | 0.0017% $ 109.3k | |
| Independent Non-Executive Director | 10.08yrs | US$210.89k | 0.0030% $ 190.8k | |
| Independent Non-Executive Director | 4.5yrs | US$210.89k | 0.0020% $ 127.6k | |
| Independent Chairman of the Board | 7.5yrs | US$409.79k | 0.0063% $ 399.8k | |
| Independent Non-Executive Director | 18.33yrs | US$193.34k | 0.00054% $ 34.1k | |
| Independent Non-Executive Director | 3.83yrs | US$193.34k | no data | |
| Independent Non-Executive Director | 2.42yrs | US$201.79k | no data |
3.8yrs
Average Tenure
64.5yo
Average Age
Experienced Board: OSH's board of directors are considered experienced (3.8 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 been diluted in the past year, with total shares outstanding growing by 36.4%.
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$6.317b
- Shares outstanding: 2.08b
- 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) | SPONSORED ADR | 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 and Alaska Business Unit ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/09 10:34 |
| End of Day Share Price | 2020/08/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.