Oil Search reported a net profit of $87.1 million for the six months to 31 December, up by 290% on the corresponding period in 2001. The result was driven by revenue of $449.3 million, up 92% on the corresponding period.

Oil production rose by over 22% during the year with oil and gas production totalling 8.34 million barrels of oil equivalent - up 16% on the 2001 result. Gold production was also included in the company for the first time, totalling 94,000 ounces.

Earnings per share increased by 210% to 8.3c. The company also announced it intends to buy-back up to 10% of its issued capital and it would also pay a final dividend for 2002 of US1c per share.

"Over the past 12 months, the company has enjoyed strong production and excellent cashflows, built on high oil and gold prices, unencumbered with hedges," said chairman of Oil Search, Trevor Kennedy.

"The result confirms transformation of the company, over three years, into a major regional producer, with strong financial fundamentals."

Despite the good result, investors remained unimpressed with the stock trading at 69c, unchanged from yesterday.