PNG LNG goes from strength to strength for Oil Search
PNG LNG continues to go from strength to strength for Oil Search (ASX:OSH), with average production of 7.4mtpa during Q3 (Morgans estimate: 7.3mtpa). This was comfortably above its 6.9mtpa nameplate capacity with the JV confident of at least 7.3mtpa being maintained heading into 2016. Total production for Q3 came in at 7.42mmboe (vs Morgans 7.2mmboe), while sales volumes were in-line at 7.22mmboe. Revenue for Q3 of US$379m was as expected (Morgans estimate: $US377m). Production guidance for 2015 remained unchanged at 27-29mmboe (Morgans estimate: 28.3mmboe). Oil Search offers a combination of high quality earnings and attractive growth profile. The key risks remain - unanticipated oil price weakness and exploration/appraisal risk. We maintain our Add recommendation. To access more commentary on OSH click the (VIEW LINK)
Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.