The company has guided to around 8.4mtpa in 2020 because of turbine maintenance on one LNG train. Similar maintenance will be undertaken on the second train in 2021.
The magnitude of the maintenance now appears larger than previously expected and Credit Suisse believes PNG LNG may underperform for three out of the next four years.
Underperform rating maintained. Target is reduced to $6.00 from $6.05 on the back of lower production, higher costs and lower LNG spot prices.
Target price is $6.00.Current Price is $7.13. Difference: ($1.13) – (brackets indicate current price is over target). If OSH meets the Credit Suisse target it will return approximately -19% (excluding dividends, fees and charges – negative figures indicate an expected loss).