Oil Search Ltd. : OISHY-US: Dividend Analysis : March 07th, 2017 (record date) : By the numbers : April 3, 2017

Our analysis is based on comparing Oil Search Ltd. with the following peers – Exxon Mobil Corporation, Total SA Sponsored ADR Class B, Whiting Petroleum Corporation and Range Resources Corporation (XOM-US, TOT-US, WLL-US and RRC-US).

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was medium quality and 4 were low quality.
  • The ending cash balance, with a dividend coverage of 11.33x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to December 31, 2016), OISHY-US paid a low quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 7.29x), investing cash flow (coverage of -3.05x), issuance cash flow (coverage of -3.87x) and twelve-month prior cash (coverage of 11.95x), for a total dividend coverage of 12.33x.

OISHY-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -3.82x) and net share buybacks (coverage of -0.05x). Thus, the total coverage including share buybacks is 12.38x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0.33 0.32 0.37 3.67 0.96 0.58
Dividend Payout (%) 18.02 15.21 10.21 -695.97 84.79 84.98

A complete list of metrics and analysis is available on the company page.

Company Profile

Oil Search Ltd. engages in the business of oil and gas exploration. It operates through the following segments: PNG Oil and Gas; PNG LNG Project; Middle East and North Africa Oil and Gas; and Other. The PNG Oil and Gas segment involves the exploration, evaluation, development, production including sale of crude oil, natural gas, condensate and other refined products from the group’s interest in its operated assets for PNG crude oil and Hides gas-to-development, production and sale of liquefied natural gas, condensate, naphtha and electricity from the group’s interest in the PNG LNG Project. The Middle East and Norht Africa Oil and Gas segment includes the exploration and evaluation of crude oil and gas through the group’s license interests in the Republic of Yemen, Republic of Iraq, and Tunisian Republic. The Other segment consists of group’s ownership of drilling rigs and corporate activities. The company was founded in 1929 and is headquartered in Sydney, Australia.

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