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Market Cap

AU$8.1b

Last Updated

2021/05/07 08:17 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and overvalued.


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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: OSH's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

OSH

-0.6%

AU Oil and Gas

-0.5%

AU Market


1 Year Return

37.3%

OSH

17.0%

AU Oil and Gas

37.3%

AU Market

Return vs Industry: OSH exceeded the Australian Oil and Gas industry which returned 17% over the past year.

Return vs Market: OSH matched the Australian Market which returned 37.3% over the past year.


Shareholder returns

OSHIndustryMarket
7 Day3.7%-0.6%-0.5%
30 Day-4.4%-3.8%2.3%
90 Day-3.9%-3.5%2.9%
1 Year37.5%37.3%20.1%17.0%41.4%37.3%
3 Year-50.3%-53.6%-23.0%-30.3%31.1%15.3%
5 Year-35.9%-41.6%10.7%-4.0%62.1%31.8%

Long-Term 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?

1.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: OSH (A$3.94) is trading above our estimate of fair value (A$1.08)

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


Price To Earnings Ratio

PE vs Industry: OSH is unprofitable, so we can't compare its PE Ratio to the AU Oil and Gas industry average.

PE vs Market: OSH is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OSH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OSH is good value based on its PB Ratio (1.1x) compared to the AU Oil and Gas industry average (2.3x).


Future Growth

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

36.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: OSH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OSH's is expected to become profitable in the next 3 years.

Revenue vs Market: OSH's revenue (7.7% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: OSH's revenue (7.7% 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 (5.6%).


Past Performance

How has Oil Search performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OSH is currently unprofitable.

Growing Profit Margin: OSH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OSH is unprofitable, but has reduced losses over the past 5 years at a rate of 5.8% per year.

Accelerating Growth: Unable to compare OSH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OSH is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-11.4%).


Return on Equity

High ROE: OSH has a negative Return on Equity (-5.76%), as it is currently unprofitable.


Financial Health

How is Oil Search's financial position?


Financial Position Analysis

Short Term Liabilities: OSH's short term assets ($868.0M) do not cover its short term liabilities ($969.5M).

Long Term Liabilities: OSH's short term assets ($868.0M) do not cover its long term liabilities ($4.8B).


Debt to Equity History and Analysis

Debt Level: OSH's debt to equity ratio (52.4%) is considered high.

Reducing Debt: OSH's debt to equity ratio has reduced from 89.8% to 52.4% over the past 5 years.

Debt Coverage: OSH's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: OSH is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

0.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OSH's dividend (0.16%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.03%).

High Dividend: OSH's dividend (0.16%) is low compared to the top 25% of dividend payers in the Australian market (5.25%).


Stability and Growth of Payments

Stable Dividend: OSH is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: OSH is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: OSH is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OSH's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Keiran Wulff

1.25yrs

Tenure

US$2,561,626

Compensation

Dr. Keiran John Wulff, BAppSc, Grad Dip Petroleum, PhD. in Geology, has been Managing Director and Director of Oil Search Limited since February 25, 2020. Dr. Wulff served as Executive Vice President at Oi...


CEO Compensation Analysis

Compensation vs Market: Keiran's total compensation ($USD2.56M) is about average for companies of similar size in the Australian market ($USD2.56M).

Compensation vs Earnings: Keiran's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: OSH's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

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: OSH 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$8.083b
  • 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


Biography

Oil Search Limited explores for, develops, and produces oil and gas properties primarily in Papua New Guinea, the United States, and Australia. It operates through PNG Business Unit and Alaska Business Uni...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 08:17
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.