Santos revenue spikes on higher gas prices

Despite lowering full-year production estimates Santos have recorded an eight per cent hike in revenue for the June quarter.

Santos announced sales revenue totalled $797 million for the June quarter, an eight per cent increase on the $739 million in the previous corresponding period, with year-to-date revenue slightly higher due to stronger gas prices.

"The average gas price of $5.61/GJ for the June quarter was a record and 16 per cent higher than the corresponding quarter, driven by higher sales from Darwin LNG and higher gas prices in the Cooper Basin and Indonesia," Santos said.

However the company has downgraded its full-year production guidance to by 3% to 52 to 55 million barrels of oil equivalent (mmboe) down from 53 to 57.

The downgrade is due to deferred oil and gas production from the company’s Chim Sao oil field in Vietnam due to power constraints, natural field declines in Sangu off Bangladesh, and deferred oil production in West Australia's Carnarvon Basin, due to poor weather.

Santos produced 12.4 mmboe in the June quarter, up two per cent from the previous quarter.

However gas production fell to 8.9 mmboe in the quarter, down six per cent from the same time last year, with higher production from its Darwin LNG facilities offset by lower production in the Cooper and Carnarvon basins and Indonesia.

Santos chief David Knox said that the company continued to achieve milestones across the business with progress continuing on key growth projects.

"We’ve delivered the Fletcher Finucane project on budget and ahead of schedule, announced gas discoveries at the Bassett West, Bianchi and Winchester exploration wells and increased our Cooper Basin acreage,” he said.

"I’m pleased to report that GLNG is now over 60% complete, with the first LNG tank roof raise complete, first modules installed and the marine crossing tunnel progressing ahead of schedule.

"This quarter also saw us finalising the first significant bilateral agreement between Queensland’s LNG projects, linking the GLNG and QCLNG projects’ pipelines. This agreement will allow for improved flexibility and efficiency in our operations and demonstrates the potential of collaboration."

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