Santos reports record profit in H1
Australian energy company Santos August 17 reported a record profit in the first half of 2022 (H1) on the back of high oil and LNG prices.
The company’s underlying profit, which excludes one-off items, hit a record-high $1.2bn, up 300% year/year. Net profit came in at $1.16bn, up 230% yr/yr, Santos said. The average realised oil price for the company was up 67% yr/yr to $116.28/barrel, and the average realised LNG price was up 111% to $14.19/mn Btu.
“Demand for our products has remained strong in both Australia and internationally, due to increased demand and shortages of supply from producing nations due global underinvestment in new supply,” Santos CEO Kevin Gallagher said. “We are seeing these issues play out in the significant shift in global energy policy towards energy security as a key priority.”
The company has maintained the full year sales volume guidance in the range of 110 to 116mn boe and production guidance in the range of 102 to 107mn boe. Sales volume in H1 was 55.7mn boe, up 4% yr/yr and output was 51.5mn boe, up 9% yr/yr.
Santos also announced that a final investment decision has been taken to proceed with the Pikka Phase 1 oil project located on the North Slope of Alaska. The company said it is also in advanced discussions with shortlisted counterparties for the sale of a 5% interest in the PNG LNG project.
“Throughout this process, there has been strong interest from reputable counterparties with expected proceeds in-line with market consensus valuation,” it said. Santos intends to retain a 37.5% stake in PNG LNG.
Santos last year became a global top-20 oil and gas firm after its $6.2bn buyout of fellow Australian company Oil Search.