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    Santos reports 37% jump in Q2 revenue

Summary

Australia’s second-largest independent gas producer has raised its annual production guidance.

by: Shardul Sharma

Posted in:

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Santos reports 37% jump in Q2 revenue

Australian explorer Santos said on July 22 its sales revenue during the three months to June 30 (Q2) was up 37% year/year owing to higher production and firmer commodity markets.

The company’s revenue rose to US$1.07bn from US$785mn a year earlier. Revenue was up 12% quarter/quarter. Santos said it produced 22.5mn barrels of oil equivalent during the period, up from 20.6mn boe last year.

Santos’ realised gas price in Q2 was US$4.74/gigajoule, up from US$3.82/gigajoule in the same period of last year. The oil price was US$74.06/b against US$30.78/b. However, the average sales price for LNG fell to US$7.52/mn Btu from US$8.27/mn Btu a year earlier.

Australia’s second-largest independent gas producer raised its annual production guidance. It now expects to produce between 87 and 91mn boe in 2021, higher than its previous forecast of 84 and 91mn boe. 

Santos said its Moomba CCS project is FID-ready, and the company is exploring CCS opportunities at Bayu-Undan and the production of zero-emissions hydrogen at Moomba. “These projects provide a competitive advantage as we seek to decarbonise our oil and gas assets on the path to net-zero emissions by 2040,” Santos CEO Kevin Gallagher said.

Santos earlier this week said it had on June 25 submitted a non-binding all-scrip merger offer to fellow Australian explorer Oil Search. The offer was rejected.