ASX:OSH

Stock Analysis Report

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Executive Summary

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


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

3.8%

OSH

3.3%

AU Oil and Gas

2.3%

AU Market


1 Year Return

-56.8%

OSH

-31.3%

AU Oil and Gas

-8.1%

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

OSHIndustryMarket
7 Day3.8%3.3%2.3%
30 Day1.3%1.4%2.8%
90 Day9.0%3.9%13.5%
1 Year-54.6%-56.8%-28.4%-31.3%-4.3%-8.1%
3 Year-48.9%-53.0%-11.5%-21.0%19.3%3.6%
5 Year-48.1%-53.6%-14.3%-29.8%40.0%9.8%

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

Valuation

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$0.5)

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 (8.3x).

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 (4.2% 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%).


Next Steps

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.


Next Steps

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


Next Steps

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 (43.5% payout ratio).


Next Steps

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

NamePositionTenureCompensationOwnership
Keiran Wulff
MD & Director0.50yrUS$1.96m0.017%
$ 1.0m
Stephen Gardiner
Chief Financial Officer7.75yrsUS$1.39m0.030%
$ 1.9m
Bart Lismont
Executive Vice President of Technology & Value Assurance1.08yrsUS$313.55kno data
Michael Drew
Group Secretary and Executive VP of Corporate & General Counsel6.58yrsUS$1.20m0.0040%
$ 249.5k
Ian Munro
Executive Vice President of Portfolio Managementno dataUS$1.19m0.0040%
$ 255.8k
Elizabeth White
Executive Vice President of Sustainability & Technologyno dataUS$1.08m0.0069%
$ 435.9k
Ann Diamant
Senior Vice President of Investor Relationsno datano datano data
Matthew Park
Vice President of Communications & Mediano datano datano data
Dale Rollins
Executive Vice President of PNG Business Unit1.08yrsno datano data
John Kurz
Chief Operating Officer of PNG Business Unit1.08yrsno datano data
Bruce Dingeman
President of Alaskano datano datano data
Ruth Waram
Communications Manager18yrsno datano 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

NamePositionTenureCompensationOwnership
Keiran Wulff
MD & Director0.50yrUS$1.96m0.017%
$ 1.0m
Susan Cunningham
Independent Non-Executive Director2.42yrsUS$201.09k0.0014%
$ 91.0k
Fiona Harris
Independent Non-Executive Director3.58yrsUS$210.15k0.0017%
$ 109.3k
Agu Kantsler
Independent Non-Executive Director10.08yrsUS$210.89k0.0030%
$ 190.8k
Eileen Doyle
Independent Non-Executive Director4.5yrsUS$210.89k0.0020%
$ 127.6k
Richard Lee
Independent Chairman of the Board7.5yrsUS$409.79k0.0063%
$ 399.8k
Kostas Constantinou
Independent Non-Executive Director18.33yrsUS$193.34k0.00054%
$ 34.1k
Melchior Togolo
Independent Non-Executive Director3.83yrsUS$193.34kno data
Bakheet Al Katheeri
Independent Non-Executive Director2.42yrsUS$201.79kno 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

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 and Alaska Business Unit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 10:35
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.