PERTH (miningweekly.com) – Oil and gas major Santos has reported record interim results for the six months to June, with production growing to 37-million barrels of oil equivalent, up 32% on the previous corresponding period.
“Our disciplined operating model and approach to capital allocation has delivered a strong first-half result and the successful integration of our Western Australian business has exceeded expectations,” said Santos MD and CEO Kevin Gallagher.
Sales volumes for the first half of the year were up 19% on the previous corresponding period, to 45.2-million barrels of oil equivalent, while sales revenues were up by 18%, to A$2-billion.
Santos generated A$300-million in free cash flow during the second quarter ended June, bringing the total free cash flow for the interim period to A$600-million.
“Santos has now delivered free cash flow for 13 consecutive quarters. These cash flows underpin our brownfield growth strategy where we hit a number of significant milestones during the quarter, including farming-in P’nyang and awarding the subsea contract for Barossa.”
Gallagher noted that Santos was also hitting record drilling rates in the onshore business, and completed two appraisal wells for its carbon capture, utilization and storage project in the Cooper basin.
Looking ahead, Santos has narrowed its production guidance for the full year to between 73-million and 77-million barrels of oil equivalent, while sales volumes are expected to reach between 90-million and 97-million barrels of oil equivalent.
Gallagher said that with maintenance activity at the Cooper basin and the Papua New Guinea liquefied natural gas project now completed, stronger production was expected in the second half of the full year.