The board has decided to reward shareholders following the company’s robust recovery.
The post Oil Search (ASX:OSH) dividend reinstated following strong first-half results appeared first on The Motley Fool Australia. –
The Oil Search Ltd (ASX: OSH) dividend received a much-welcomed return today, after being suspended in the prior corresponding year. This came after the energy producer announced a strong first-half result for the 2021 financial year.
Undoubtedly, investors will be glad that the company has reinstated its dividend following a challenging time in its history.
Let’s take a peek at Oil Search’s first-half scorecard and the details regarding its upcoming interim dividend.
How did Oil Search preform in the first-half of FY21?
The Oil Search share price has rallied on the back of solid operational performance and strengthened market conditions.
For the 12 months ending 30 June 2021, Oil Search achieved US$667.7 million in revenue, up 7% on 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.
Furthermore, earnings before interest, tax, depreciation and amortisation and exploration (EBITDAX) also rose to US$489 million, reflecting an 8% increase.
On the bottom line, Oil Search posted a Net Profit After Tax (NPAT) of US$139 million. A stark contrast when comparing the company’s sizable US$266.2 million loss in the first-half of FY20.
In light of the robust performance, the Oil Search board decided to bump up its interim dividend to US3.3 cents per share.
Based on the current Oil Search share price of $3.76 apiece, this gives the company a trailing dividend yield of just over 1.21%. The payout ratio is 49% of H1 FY21’s NPAT.
Oil Search dividend key dates
Oil Search released the distribution amount and payment dates of its unfranked interim dividend for the 2021 financial year. Here’s a summary of the important dates Oil Search shareholders will need to know.
The ex-dividend date will be 31 August 2021.
The ex-dividend date is when investors must have purchased Oil Search shares. If the investor does not buy Oil Search shares before this date, the dividend will go to the seller.
The record date for the Oil Search dividend is 1 September 2021.
This is the date where the company identifies which investors are on its register. Those who are on Oil Search’s books will be eligible to receive its upcoming dividend.
The payment date for Oil Search’s final dividend will be 21 September 2021.
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