Australian Santos Reports Strong 4Q

Australian Santos has reported a strong performance in the 4Q of 2016 as well as the full year with impressive production and sales numbers.

The company produced 61.6mn barrels of oil equivalent in 2016, within the revised full-year guidance of 60 to 62mn boe, while sales rose to 84.1mn boe, ahead of the 81-83mn boe target range. LNG sales were 2.8mn metric tons, up 89% thanks to the ramp-up of GLNG, and strong performance at PNG LNG and Darwin LNG. LNG sales revenue was $887mn for the year. GLNG produced 4.6mn mt of LNG in 2016 and shipped 75 cargoes, Santos said January 20.

Sales for the full year were $2.59bn, up 6% despite lower average oil and gas prices compared with the previous year.

In 4Q, output was 15mn boe, up 1% while revenue was $753mn, up 26% on year.

“Our production cost per barrel has reduced, and we are free cash flow positive below $38/b, down from $47/b at the start of 2016. Production and sales volumes were both at record levels for the company,” managing director and CEO Kevin Gallagher said.

Shardul Sharma