First half net profit beat forecasts amid lower interest expense, favourable inventory and lower royalties.
The main focus of the company’s commentary was the update on P’nyang gas field development and how the proposed merger with Santos has slowed down the sale process in Alaska.
On the merger, UBS expects an update on estimated synergies along with a binding merger implementation agreement in the first week of September. Buy rating and $4.65 target maintained.
Sector: Energy.
Target price is $4.65.Current Price is $3.80. Difference: $0.85 – (brackets indicate current price is over target). If OSH meets the UBS target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).
