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    Santos reports record revenue in Q3

Summary

The company said its merger with Oil Search is on track for completion by year-end.

by: Shardul Sharma

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Santos reports record revenue in Q3

Australian explorer Santos on October 21 reported a record quarterly sales revenue in the three months to September 30 (Q3) driven by higher LNG, gas and oil prices.

The company’s revenue came in at $1.14bn in Q3 as against $797mn in the same period of last year. Santos said its average realised LNG price rose to $10.4/mn Btu from $4.27/mn Btu in the corresponding quarter. Its realised gas price was $4.98/gigajoule, up from US$3.94/gigajoule in the same period of last year. The oil price was US$76.64/b against US$45.9/b.

Santos has slightly raised the lower end of its annual production guidance. The company now expects to produce between 88 and 91mn boe in 2021, higher than its previous guidance of between 87 and 91mn boe.

CEO Kevin Gallagher said that the $15bn merger with Oil Search is on track for completion by year-end. The merger was first announced in August and finalised last month. The combined entity will be among the world’s top 20 oil and gas companies and have assets across Australia, Timor-Leste, Papua New Guinea (PNG) and North America.

“The proposed merger with Oil Search is on track for completion by year-end, subject to customary conditions including Oil Search shareholder approval,” he said. “I’m very happy with how the merger is progressing, and particularly acknowledge the positive comments from PNG Prime Minister Hon. James Marape, at what is an incredibly important time for energy markets and energy companies around the world.”