Australian Santos 2Q Revenue Up 30% on Year

Australian Santos 2Q 2017 gas sales volumes were up 10% year-on-year to 21.5mn boe and revenue was up 30% year-on-year to $769mn primarily due to higher LNG prices, the company said July 20.

Compared with 1Q, gas sales volumes were up 16% while revenue was higher by 12%.

Production in 2Q was 14.7mn boe compared with 15.5 mn boe in the same quarter last year. Compared with 1Q 2017, production was down 1%.

Santos has increased its production guidance for 2017 to 57-60mn boe from 55-60mn boe and sales volumes guidance to 75-80mn from 73-80mn boe. The company reduced the 2017 production cost guidance to $8-8.25/boe, down from $8.45/boe in 2016.

Santos CEO Kevin Gallagher said more efficient, lower cost operations had enabled Santos to increase drilling activity in both the Cooper Basin and across its GLNG acreage. “These are strong outcomes that highlight Santos’ ongoing transformation into a low-cost, reliable and high-performance business with a robust asset portfolio that can generate significant free cash flow in a lower oil price environment.”

Production at Santos' GLNG project was up about 38% year on year to 2.9mn boe during the quarter.

Shardul Sharma