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

Proven 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


Market Performance


7 Day Return

4.8%

OSH

3.0%

AU Oil and Gas

1.0%

AU Market


1 Year Return

-11.6%

OSH

-8.8%

AU Oil and Gas

6.9%

AU Market

OSH underperformed the Oil and Gas industry which returned -8.9% over the past year.

OSH underperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

OSHIndustryMarket
7 Day4.8%3.0%1.0%
30 Day15.7%5.1%3.9%
90 Day5.1%-0.2%1.6%
1 Year-9.3%-11.6%-5.1%-8.8%13.1%6.9%
3 Year25.7%19.5%35.3%22.0%39.5%20.7%
5 Year-6.7%-15.0%-14.4%-29.8%52.8%18.7%

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

3 weeks ago | Simply Wall St

Should You Buy Oil Search Limited (ASX:OSH) For Its Upcoming Dividend In 4 Days?

Valuation

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

37%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Oil Search's share price is below the future cash flow value, and at a moderate discount (> 20%).

Oil Search's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Oil Search is poor value based on expected growth next year.


Price Based on Value of Assets

Oil Search is overvalued based on assets compared to the AU Oil and Gas industry average.


Next Steps

Future Growth

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

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Oil Search's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Oil Search's earnings are expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).

Oil Search's revenue growth is positive but not above the Australia market average.

Oil Search's earnings growth is positive but not above the Australia market average.

Oil Search's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Oil Search is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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 (68.1% vs 9.7%)

Oil Search's earnings growth has exceeded the AU Oil and Gas industry average in the past year (68.1% vs 63.2%).


Return on Equity

Oil Search has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Oil Search used its assets less efficiently than the AU Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Oil Search has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Oil Search's financial position?


Financial Position Analysis

Oil Search's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Oil Search's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Oil Search's level of debt (65.6%) 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 (85.8% vs 65.6% today).

Debt is well covered by operating cash flow (30.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

2.53%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Oil Search's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.46%).

Oil Search's dividend is below the markets top 25% of dividend payers in Australia (5.58%).

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

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 (2.5x coverage).


Next Steps

Management

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

5.7yrs

Average management tenure


CEO

Peter Botten (64yo)

24.9yrs

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

Peter's remuneration is higher than average for companies of similar size in Australia.

Peter's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.7yrs

Average Tenure

The average tenure for the Oil Search management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.6yrs

Average Tenure

64yo

Average Age

The tenure for the Oil Search board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Keiran Wulff

    Executive GM & President of Alaska

    • Tenure: 1.5yrs
    • Compensation: US$1.91m
  • Peter Botten (64yo)

    MD & Executive Director

    • Tenure: 24.9yrs
    • Compensation: US$5.92m
  • Stephen Gardiner (60yo)

    Chief Financial Officer

    • Tenure: 6.8yrs
    • 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: 5.7yrs
    • 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: 0.2yrs
  • Matthew Park

    Vice President of Communications & Media

    • Tenure: 0yrs

Board Members

  • Susan Cunningham (63yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: US$131.75k
  • Fiona Harris (58yo)

    Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: US$190.76k
  • Agu Kantsler (68yo)

    Non-Executive Director

    • Tenure: 9.2yrs
    • Compensation: US$182.99k
  • Eileen Doyle (64yo)

    Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: US$185.46k
  • Rick Lee (69yo)

    Chairman of the Board

    • Tenure: 6.6yrs
    • Compensation: US$384.87k
  • Peter Botten (64yo)

    MD & Executive Director

    • Tenure: 24.9yrs
    • Compensation: US$5.92m
  • Kostas Constantinou (61yo)

    Non-Executive Director

    • Tenure: 17.4yrs
    • Compensation: US$173.25k
  • Mel Togolo (72yo)

    Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: US$173.82k
  • Bakheet Al Katheeri (44yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • 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$11.603b
  • 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)SPONSORED ADRUSUSDNov 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 Analysis2019/09/21 10:32
End of Day Share Price2019/09/20 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.