Santos Ltd. has reported $1.29 billion in gross sales income for the primary quarter (Q1), down 8 % from the prior three-month interval as decrease pure gasoline costs offset a rise in gasoline gross sales volumes.
The Australian oil and gasoline exploration and manufacturing firm noticed free money circulate from operations enhance 9 % quarter-on-quarter to about $465 million.
“The enterprise stays sturdy and resilient, sustaining free money circulate from operations breakeven oil worth lower than US$35 per barrel in 2025”, managing director and chief govt Kevin Gallagher mentioned in an announcement.
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“Our LNG contract portfolio gives flexibility and positions Santos to capitalize on rising market alternatives amid ongoing volatility”, Gallagher added.
Santos offered 1.36 million metric tons of liquefied pure gasoline (LNG) within the January-March interval. Its home gasoline gross sales totaled 45.8 petajoules.
Petroleum and condensate gross sales fell sequentially to 1.26 million barrels and 1.14 million barrels respectively. Liquefied petroleum gasoline gross sales additionally decreased to 7.8 million metric tons.
Whole Q1 gross sales volumes had been decrease than This autumn 2024 with no crude lifting from Western Australia’s Pyrenees oilfields and decrease third-party purchases, Santos mentioned.
In the meantime manufacturing grew 2 % quarter-on-quarter to 21.9 million barrels of oil equal (MMboe). Papua New Guinea contributed 10 MMboe, Western Australia 5.1 MMboe, Queensland and New South Wales 3.5 MMboe, Cooper Basin 3.1 MMboe and Northern Australia and Timor-Leste 200,000 boe.
Western Australian manufacturing grew over 18 % pushed by the Halyard-2 infill effectively, which maintains manufacturing within the offshore Better East Spar subject as Halyard-1 has been depleted. Halyard-2 is focused to ship an incremental 65 million normal cubic ft a day of gasoline to Valarus Island for processing by way of an current pipeline. Halyard-2 began up in Q1.
Santos’ realized gasoline costs dropped quarter-on-quarter to $11.57 per million British thermal items (MMBtu) for LNG and $5.93 per gigajoule for home gasoline. Nevertheless, the Japan-Korea Marker-indexed portion of its LNG gross sales rose to $14.12 per MMBtu; the oil-indexed portion dipped to $11.04 per MMBtu. Liquid costs climbed.
Santos mentioned the Barossa subject growth was 95.2 % on the finish of Q1, on monitor to begin manufacturing in Q3. Barossa will present a brand new supply for Darwin LNG within the Northern Territory, extending the liquefaction facility’s life for about 20 years.
In one other mission, section 1 of the Pikka oilfield growth in Alaska reached 82.2 % completion. “Whereas there isn’t a change to market steerage of first manufacturing in mid-2026, this creates the chance for an early startup, topic to climate and logistics which can turn into clearer within the second quarter”, Santos mentioned. The primary section targets reservoirs with estimated confirmed and possible reserves of 397 million barrels gross (165 million barrels for Santos).
“Our growth initiatives are nearing completion inside value and schedule steerage”, Gallagher mentioned. “When the Barossa and Pikka initiatives come on-line, manufacturing is anticipated to extend by greater than 30 % by 2027. These two world-class initiatives are anticipated to set the corporate up with long-term, steady money flows to underpin aggressive shareholder returns according to our dedication to return a minimum of 60 % of all-in free money circulate to shareholders, and as much as 100% when gearing falls beneath our goal vary”.
To contact the creator, e-mail jov.onsat@rigzone.com
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