Shares of Oil Search are under pressure in early trade as the company reported a 70% drop in annual core profits.
Net profits fell to $106.7 million for calendar year 2016, compared to $359.9 million during 2015. The company cut its full-year dividend to 3.5 cents from 10 cents, which was slightly ahead of analysts’ expectations of 3 cents.
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Oil Search reported plans to roughly double capital spending this year to between $360 to $400 million, with exploration and development campaigns underway near a recent find in Papua New Guinea.
The company expects oil production of between 28 to 30 million barrels over the course of 2017, which would be slightly less than 2016 production.
Our Algo Engine triggered a “short” signal back in October at $7.72
