Oz Santos' H1 Underlying Profit Nearly Halves

Australian Santos on August 20 said its underlying profit, which strips out one off items, during the six months to June 30 (H1) was $212mn (AU$295mn), down 48% yr/yr thanks to lower realised oil and LNG price.

The average realised oil price fell 34% yr/yr to $47.83/b and the average realised LNG price dropped 14% yr/yr to $8.57/mn Btu. Sales revenue was down 16% yr/yr to $1.67bn, Santos said.

Sales volumes increased 4% yr/yr to a half-year record of 46.9mn barrels of oil equivalent. The higher volumes were primarily due to a higher interest in BayuUndan and Darwin LNG following completion in May 2020 of the acquisition of ConocoPhillips’ assets in northern Australia and Timor-Leste, partially offset by slightly lower domestic gas sales volumes, the company said.

Production was up 4% yr/yr to a record 38.5mn boe in H1, primarily due to the higher interest in BayuUndan combined with stronger onshore gas production in the Cooper Basin and Queensland.  

Santos reported a net loss after tax of $289mn which includes the previously announced non-cash impairment due to revised oil price assumptions. In July, the company said it will recognise a non-cash impairment charge in the range of $490-560mn after tax ($700-800mn before tax).