Oil Search records net profit of K1.2bil
OIL Search Ltd recorded a net profit after tax of US$341 million (K1.2 billion) last year which was 13 per cent higher than in the previous year, chairman Rick Lee says.
Lee said during the company’s 88th annual meeting in Port Moresby on Friday that despite the earthquake last February that affected Hela, Southern Highlands and parts of Gulf and Western, the company generated a healthy operating cash flow of US$855 million (K2.9 billion). Lee said while sales volumes fell 17 per cent due to the earthquake, this was more than offset by stronger global energy prices.
“The company also maintained a very tight discipline on capital management, ending the year with liquidity of US$1.5 billion (K4.9 billion),” Lee said.
He said good progress has been made over the past year in completing phase one of the landowner benefits identification (Lobid) process, involving the final vetting of clans.
Lee said the identification process for petroleum development licences (PDL) 1 and 7 in Hela was completed and ministerial determination for both licences was gazetted.
“This was a major milestone for the project, with the distribution of funds to landowners, which are currently being kept in a trust, expected to start shortly,” he said.
“Oil Search is continuing to support the government in resolving the landowner benefits identification process for all remaining licence areas.
“These are approaching completion, subject to the removal of landowner injunctions, which, unfortunately, are still impeding progress in two licence areas.”