Santos Ltd. on Thursday reported $1.29 billion in gross sales income for the second quarter, down one p.c from the prior three-month interval as weaker liquids costs offset increased gross sales volumes.
The Australian firm produced 22.2 million barrels of oil equal (MMboe) within the April-June quarter, up one p.c sequentially. Larger manufacturing in Western Australia was offset by flood impacts within the Cooper Basin.
“Over 200 wells and a number of other upstream compressors have been shut in. Manufacturing restoration is underway and is predicted to proceed ramping up as flood ranges recede through the second half”, Santos mentioned in its quarterly report.
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A projected affect past the quarter from the flooding led to an adjustment in full-year manufacturing steering from 90 MMboe-97 MMboe to 90-95 MMboe.
Furthermore Timor-Leste’s Bayu-Undan ceased manufacturing in Might 2025, the report mentioned. The sphere had already stopped supplying pure gasoline to Darwin LNG late 2023 as a consequence of depletion however Santos mentioned in 2024 Bayu-Undan would proceed sending gasoline to Australia’s Northern Territory till the tip of that 12 months.
“Constructive discussions with Timor-Leste and Australian governments are persevering with to progress the proposed Bayu-Undan Carbon Seize and Storage venture and take a look at alternatives to course of third-party gasoline by Bayu-Undan infrastructure”, Santos mentioned Thursday.
The output improve, in addition to a timing affect from Pyrenees crude liftings in Western Australia, drove a 3 p.c quarter-on-quarter improve in gross sales volumes to 23.9 MMboe, Santos mentioned.
LNG gross sales totaled 1.27 million metric tons, down from 1.36 million metric tons in Q1. Santos’ LNG tasks shipped 49 cargoes in Q2, of which 4 have been equity-marketed from Papua New Guinea LNG.
Home gasoline gross sales rose from 45.8 petajoules in Q1 to 51.2 petajoules in Q2, pushed by Western Australia.
Crude oil gross sales elevated from 1.26 million barrels to 1.85 million barrels, however condensate gross sales dropped from 1.14 million barrels to 997,600 barrels. Gross sales of liquefied petroleum gasoline surged from 7,800 metric tons to 29,800 metric tons.
The rise in gross sales volumes was offset by decrease liquids pricing, which was impacted by decrease dated Brent and Platts MOPJ (Imply of Platts Japan) pricing. Realized crude costs averaged $71.17 a barrel, in comparison with $82.24 per barrel in Q1.
Larger oil-linked LNG costs have been partially offset by decrease realized costs from Japan Korea Marker-linked LNG gross sales.
The Barossa Gasoline Mission, which entails creating the namesake gasoline area in Northern Territory waters to offer a brand new supply for Darwin LNG, reached about 97 p.c completion on the finish of Q2 together with the arrival of the BW Opal floating manufacturing, storage and offloading vessel.
“All scopes of labor, together with the Darwin LNG life extension actions, stay on observe for first gasoline this quarter”, Santos mentioned. “The Gasoline Export Pipeline and Darwin Pipeline Duplication to Darwin LNG are full, examined and tied in, able to obtain gasoline from Barossa”.
In Alaska, Part 1 of the Pikka oilfield improvement was round 89 p.c full. Startup is predicted mid-2026 however Santos mentioned, “An early start-up for the venture stays doable, topic to a profitable Mackenzie River elevate of remaining processing modules from the Hay River Marine Terminal over the northern summer time”.
Managing director and chief govt Kevin Gallagher commented, “Free money circulation of roughly $1.1 billion within the first half positions the corporate effectively as we close to the start-up of our main improvement tasks, Barossa and Pikka”.
“The enterprise stays sturdy, with a free money circulation from operations breakeven oil value beneath $35 per barrel for 2025”, Gallagher added.
“We proceed to see very robust demand and premia for prime heating-value LNG from tasks similar to Barossa and PNG LNG, in addition to for dependable regional provide”, Gallagher mentioned.
On June 27 Santos mentioned it had entered right into a course of and exclusivity deed with XRG PJSC, the worldwide funding fund of Abu Dhabi Nationwide Oil Co., for its potential acquisition by a consortium comprising XRG, sovereign wealth fund Abu Dhabi Improvement Holding Co. and Washington, DC-based investor Carlyle Group.
Santos introduced June 16 it had acquired a non-binding indicative proposal from the consortium. The provide of $5.76 per share comes a few 12 months after Santos and compatriot Woodside Power Group Ltd. ended merger talks.
The worth could be adjusted for dividends paid earlier than a last proposal comes into pressure. The worth was elevated from two confidential presents of $5.04 per share and later $5.42 per share in March, Santos mentioned.
XRG earlier in June introduced a aim of constructing a top-five built-in gasoline and LNG enterprise with a capability of 20-25 million metric tons a 12 months by 2035.
Santos operates in Australia, Papua New Guinea, East Timor and the US.
To contact the creator, electronic mail jov.onsat@rigzone.com
