Insights

How does the Oil Search (ASX:OSH) earnings result compare to Santos (ASX:STO)?

We take a peek at how the energy giants’ figures stack up against each other.
The post How does the Oil Search (ASX:OSH) earnings result compare to Santos (ASX:STO)? appeared first on The Motley Fool Australia. –

The Oil Search Ltd (ASX: OSH) share price has edged lower in the days following the company’s FY21 half-year scorecard. The energy producer recorded a solid operational performance as well as strengthened market conditions.

Meanwhile, Santos Ltd (ASX: STO) reported its FY21 earnings on 17 August, also announcing a robust result. However, its share price had a few mixed trading days based on fluctuations in the spot price of oil.

Comparing the financial figures of the two companies can give investors a clearer picture of how the industry is travelling.

Let’s take a look at how the Oil Search earnings result stacks up against Santos’ numbers.

A recap on the Oil Search earnings result

Here’s a summary of the financial details that Oil Search posted for the 6 months ending 30 June 2021.

Total sales revenue of US$667.7 million, up 7% on the prior corresponding period;

Earnings before interest, tax, depreciation and amortisation and exploration (EBITDAX) of US$488.8 million, down 8%;
Net profit after tax (NPAT) of US$139 million (H1 FY20 net loss after tax of US$266.2 million), and
Interim dividend declared of US3.3 cents per share (no dividend declared in H1 FY20).

The sound result benefited from a price recovery in oil and liquified natural gas (LNG) predominately in Asia. Higher realised prices coupled with management’s focus on reducing costs led to a significant improvement in the company’s financial health.

How does this compare to Santos?

Santos revealed its own FY21 earnings, highlighting record production of 47.3 mmboe (million barrels of oil equivalent). Let’s see how it stacked up against Oil Search’s result.

Total sales revenue of US$2,040 million, up 22% on the prior corresponding period;

Earnings before interest, tax, depreciation and amortisation and exploration (EBITDAX) of US$1,231 million, up 24%;
Net profit after tax of US$354 million, up 222%, and
Interim dividend declared of US5.5 cents per share, up 162%.

Santos turned its fortunes around with higher oil prices realised in the first half coupled with record sales volumes of 53.8 mmboe.

In addition, higher oil prices were realised but were offset by lower LNG (liquified natural gas) prices due to long-term, fixed-price offtake contracts.

Comparing Oil Search’s earnings with those of its rival, there are somewhat softer similarities in terms of revenue growth. Although when it comes to EBITAX and NPAT, Santos is far ahead of Oil Search in both numbers and percentage increases.

Oil Search share price snapshot

It has been a modest 12 months for Oil Search shares, posting a gain of almost 20% over the period. Year to date, the company’s share price is relatively flat, up 1% though.

Oil Search commands a market capitalisation of roughly $7.8 billion, with more than 2 billion shares on its books.

The post How does the Oil Search (ASX:OSH) earnings result compare to Santos (ASX:STO)? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Oil Search right now?

Before you consider Oil Search, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Oil Search wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Santos (ASX:STO) share price lifts 3% following oil price rise
5 things to watch on the ASX 200 on Monday

5 things to watch on the ASX 200 on Friday

Santos (ASX:STO) share price slumps amid misleading emissions lawsuit
The Santos (ASX:STO) share price is now trading on a trailing 2.35% fully-franked dividend yield

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!