UBS notes the negotiations over the P’nyang gas agreement are close to finalisation and fiscal terms are expected to mirror the Papua LNG agreement.
Planned maintenance is likely to negatively impact on 2020 and 2021 production of LNG by -5%. Increased oil production is expected in 2020 from new wells and work-overs performed in 2019.
UBS maintains a Neutral rating and raises the target to $7.60 from $7.40.
Target price is $7.60.Current Price is $7.16. Difference: $0.44 – (brackets indicate current price is over target). If OSH meets the UBS target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).