Oil Search Ltd has recorded US$1.45 billion (K4.4 billion) in total revenue for 2017 – a 17 percent increase in revenue compared to the previous year.
The result follows record production for the company and improving global oil prices.
The company recorded a full year production of 30.31 million barrels of oil equivalent (mmboe) for 2017 after a fourth quarter total production of 7.59 mmboe.
Additionally, a 5 percent increase in global prices saw the company surpass estimates.
Oil Search managing director, Peter Botten, said the company finished 2017 strongly, with full year production at the upper end of their guidance range and an all-time record for the company.
Botten also said the PNG LNG Project delivered another solid quarterly performance with the Project operating at an annualised rate of approximately 8.3 MTPA, despite a short rate reduction in October related to the second phase of LNG plant compressor upgrades.
“Our realised oil and condensate price in the fourth quarter was US$63.05 per barrel, up 20 percent on the third quarter, reflecting the strength in global oil prices.
“This, together with a 5 percent increase in our realised LNG and gas price, helped lift fourth quarter revenue to US$389 million, driving total revenue for the year to US$1.45 billion, 17 percent higher than in 2017,” Botten said.
Meanwhile, Oil Search has repaid nearly a billion kina in finance for the PNG LNG Project.
The company stated that it has repaid US$314 million (K957 million) of PNG LNG project finance debt.
This leaves Oil Search with a net debt at the end of 2017 of US$2.61 billion (K7.96 billion), compared to US$3.08 billion (K11.6 million) at the beginning of the year.
Including US$850 million (K2.6 million) of undrawn corporate credit facilities, Oil Search had total liquidity of nearly US$1.9 billion (K5.8 billion) at the end of 2017.
The company announced that over 2017, its cash balance increased from US$863 million (K2.6 billion) to just over US$1 billion (K3 billion).