Oil Search Ltd., the target of a takeover bid from Woodside Petroleum Ltd., posted a 30 percent decline in third-quarter sales after a drop in energy prices.
Revenue fell to $379 million from $538.2 million a year earlier, according to a statement from Oil Search on Tuesday. Sales dropped 3 percent from the June quarter. Output rose to a record 7.42 million barrels of oil equivalent, the company said.
Oil Search, which has a stake in the Exxon Mobil Corp.-operated liquefied natural gasproject in Papua New Guinea, is among companies grappling with a slump in prices amid a surge in new supply. Benchmark Brent crude averaged $51.48 a barrel in the third quarter, compared with $103.59 during the same period in 2014.
“We are aiming to reduce costs and enhance production while continuing to move forward with our high-value growth opportunities,” Managing Director Peter Botten said in the statement. “The company is in an excellent position to withstand sustained low oil prices and capitalize from an oil price recovery.”
Oil Search last month rejected Woodside’s $8 billion takeover approach as too low. The offer is “fully priced,” Chief Executive Officer Peter Coleman said last week, amid speculation Woodside will increase its bid.
