Oz Santos Sees Q3 Revenues Weaken

Australian oil and gas explorer Santos on October 22 reported a 23% yr/yr drop in sales revenues for the three months to September 30 (Q3), owing to lower realised oil and gas prices.

Santos’ revenues in Q3 were $797mn compared with $1.03bn in the same period last year. Average realised LNG prices were down 57% yr/yr, domestic gas prices down 3.2% and oil prices down 31%.

“We expect the third quarter to represent the trough for LNG prices, with higher prices expected in the fourth quarter based on current JCC oil-linked and JKM spot pricing, with JKM currently above $6/mn Btu for December delivery,” Santos CEO Kevin Gallagher said.

Production rose 26.8% to a record 25.1mn barrels of oil equivalent, reflecting Santos' larger stake in the Bayu-Undan gas field following an acquisition from ConocoPhillips as well as higher domestic gas production in Western Australia. Santos has maintained its full-year production guidance of 83-88mn boe.