Papua new Guinea-focused Oil Search reported a nearly sixfold increase in its core profit in the January-June period, boosted by a recovery in demand and higher oil and gas prices.
Oil Search, which has a 29 percent stake in the 6.9 mtpa PNG LNG project, said its core net profit after tax rose to $139 million for the six months ended June 30. This compares to $24.7 million in the same period a year ago.
Also, net profit after tax of $139 million rose from the $266.2 million loss Oil Search had reported in the first half last year.
The profit rise comes weeks after Oil Search had agreed to a new merger proposal by Australia’s Santos, in a deal that would create an LNG player worth about $16 billion.
“Oil and LNG markets have continued to recover from the initial economic impacts of the Covid-19 pandemic led by a robust demand rebound in Asia,” acting CEO Peter Fredricson, said
“We continue to take full advantage of the ongoing recovery in oil and condensate
prices as benefits from increased contracted LNG prices flow into the second half of the year,” he said.