Santos Ltd. has reported $1.31 billion in gross sales income for the second quarter, down year-on-year and quarter-on-quarter as its realized liquefied pure gasoline (LNG) costs dipped.
The Australian oil and gasoline producer saved gross sales volumes at 23.2 million barrels of oil equal (MMboe), the identical because the prior three-month interval and the second quarter a yr in the past. Nevertheless, gross sales revenues fell by $85 million quarter-over-quarter and $23 million year-over-year as weaker LNG offset good points in oil, liquefied petroleum gasoline and condensate costs, in accordance with the corporate’s quarterly report Thursday.
Santos’ common promoting value for LNG slid $11.47 per million British thermal unit (MMbtu) in Apri–June from $12.68 within the first three months of 2024 and $11.96 within the corresponding quarter of 2023.
Oil climbed to $89.48 a barrel from $89.14 within the first quarter of 2024 and $82.91 within the comparable quarter of 2023.
Adelaide-based Santos produced 22.2 MMboe within the second quarter of 2024, down from 22.8 MMboe within the corresponding interval final yr however up from 21.8 within the first quarter of 2024. Santos derives most of its output from Western Australia. It additionally holds manufacturing property in Papua New Guinea and Timor-Leste.
The corporate generated $380 million in free money move from operations for the primary quarter of 2024.
“First half money move of virtually $1.1 billion positions us nicely to fund shareholder returns, backfill and maintain our current enterprise, and develop our Santos Vitality Options enterprise”, managing director and chief government Kevin Gallagher stated in an announcement.
“Our main initiatives proceed to ship to plan… Our focus for 2024 is on persevering with to drive the disciplined low-cost working mannequin throughout the enterprise and the execution of the Moomba part one CCS mission, Barossa Gasoline Mission, and Pikka Mission, while sustaining a robust steadiness sheet”, Gallagher added.
Barossa, an offshore gasoline and condensate mission to offer a brand new feed supply for the Darwin LNG facility within the Northern Territory, was 77 p.c full as of the tip of the second quarter, in accordance with Santos. The mission is deliberate to have a gasoline export capability of 635 million cubic ft per day and a condensate processing capability of about 11,000 barrels per day. It’s anticipated to start out manufacturing 2025.
“The Gasoline Export Pipeline pipelay has been accomplished”, it stated, after a delay by a authorized problem that Santos later hurdled. “The third nicely of the six-well drill program was spudded in Might. All 16 modules have been put in onto the FPSO [floating production and storage vessel]. Building actions for the Darwin Pipeline Duplication have commenced”.
In the USA, the Pikka oil discipline growth reached 56.2 p.c completion, Santos stated. The primary part targets the Nanushuk 2/3 reservoirs, that are estimated to carry confirmed and possible reserves of 397 million barrels gross (165 million barrels internet for Santos). Pikka, in Alaska, is predicted to go onstream 2026.
In the meantime, the Moomba Carbon Seize and Storage (CCS) Mission in South Australia reached 92 p.c completion with nicely tie-ins in progress, Santos stated. It’s anticipated to start out service 2024.
Santos closed larger at AUD 8.02 on Friday.
To contact the writer, e mail jov.onsat@rigzone.com
What do you assume? We’d love to listen to from you, be part of the dialog on the
Rigzone Vitality Community.
The Rigzone Vitality Community is a brand new social expertise created for you and all power professionals to Communicate Up about our trade, share data, join with friends and trade insiders and interact in an expert neighborhood that may empower your profession in power.