Scary as OSH usually has a great lag and never gets the same valuation or increases in history so really trying to work out if it has been rerated and will retain that rerating. The comparative pool of companies , some with hedging and issues of refinance etc all have their own quirks.
I guess the whole political environment worldwide ( inc china in china sea , korea , trumps , putin unpredictability ) has a taint to it so energy national security is getting a big mention. Even Aus is getting mentions of fuel reserves now they have so few operating and small scale refineries.
Be interesting with drilling and any rerate of fields if OSH gets full reval on them and also full trains locked in and govt happy adds anything or market is expecting and already valued it in.
Strong oil prices and any increase in gas changes the dynamic for a lost cost curve producer significantly and the response that they will keep div ratio may have given some confidence as well. So borrow to fund but still pay divs so holders have a income and hold part of a larger production with more leverage and hopefully more economy of scale. .
Has been some really sad articles on PNG saying PNG LNG has done more harm than good but they totally neglect to mention that it was the Govt greed, oil prices and way they refinanced with sharks financed that stuffed em up not the actual oil companies who bend over backwards in support. Without the oil companies jobs, technology, infrastructure ,education, taxation income would all be zero and PNG poverty and infighting would make it impossible for outsiders to make a investment.
OSH Price at posting:
$8.00 Sentiment: None Disclosure: Held
