PERTH (miningweekly.com) – Oil and fuel main Santos has delivered report first half revenues of $3.8-billion, which was up by 85% on the earlier corresponding interval, whereas free money flows have been up 199% to $1.7-billion.
Manufacturing for the half yr additionally reached report heights at 51.5-million barrels of oil equal, up 9% on the earlier corresponding interval, whereas gross sales volumes have been up 4% in the identical interval to 53.8-million barrels.
Santos MD and CEO Kevin Gallagher mentioned the report manufacturing, gross sales income and free money circulation within the first half of 2022 demonstrated the sturdy efficiency of the bottom enterprise and strategic advantages of its various portfolio, regardless of quite a lot of main deliberate shutdowns within the second quarter.
“Santos is positioned as a number one and dependable liquefied pure fuel (LNG) provider into Asia and we’re properly positioned to make the most of rising Asian demand for LNG, which is forecast to double by 2050,” Gallagher mentioned.
“On the identical time, we supported the home fuel market throughout a interval of utmost demand by diverting fuel from Gladstone LNG and committing to a fifth drilling rig within the Cooper basin throughout the quarter.
“Regardless of the interval of worth and demand volatility, Santos home fuel clients paid considerably lower than that paid by worldwide clients. These home costs are reflective of the long-term contracts that the majority of our Australian clients are on, quite than a lot publicised spot home market costs, which make up roughly solely 10% of the east coast fuel market,” mentioned Gallagher.
“Our new capital administration framework introduced in April mixed with sturdy free money flows place us properly to offer returns to shareholders on the half-year leads to August.”
Wanting on the full yr, Santos has narrowed its manufacturing steerage from the earlier 100-million to 110-million barrels of oil equal, to between 102-million and 107-million barrels of oil equal, whereas gross sales volumes have been narrowed from between 110-million to 120-million barrels, to between 110-million and 116-million barrels of oil equal.
Main initiatives capital expenditure steerage is lowered barely from between A$1.15-billion and A$1.3-billion, to between A$1.1-billion and A$1.2-billion, reflecting timing of expenditures that are anticipated to be weighted to the second half.
Manufacturing value steerage is lowered to between $7.90/barrel of oil equal and $8.30/barrel of oil equal, whereas depreciation, depletion and amortisation is predicted to be roughly $850-million within the first half and roughly $1.7-billion for the total yr.