Oil Search approves interim dividend

The Oil Search Board has approved the payment of an interim unfranked dividend of four US cents (K1.20) per share.

This follows the company’s first half year announcement of a 405 per cent net after tax profit of US$129.1 million which is a 405 per cent increase from the same period in 2016.

The dividend is a 300 per cent increase in interim dividend from 2016.

Oil Search says this represents a dividend payout ratio of 47%, which is towards the upper end of the range of the Board’s dividend policy to return between 35% and 50% of core net profit after tax to shareholders by way of dividend.

The company highlighted that the 2017 interim dividend will be subject to a 15 per cent withholding tax.

This follows taxation amendments in the 2017 Budget, removing the exemption from withholding taxes on earning sourced from petroleum operations.

“We continue to hold positive discussions with the PNG authorities with the objective of restoring the exemption for future dividends,” state the company in its report.


Picture: Loop file picture

Cedric Patjole