Australia’s Santos logs record quarterly revenue

Australia’s Santos reported a record sales revenue in the third quarter, boosted by higher LNG prices.

The independent LNG producer said its quarterly sales revenue rose 6 percent to $1.14 billion on improved commodity prices.

Santos said it produced 21.9 million barrels of oil equivalent (mmboe) during the July-September period, down 3 percent when compared to the prior quarter but also from 25.1 mmboe in the same quarter last year.

Moreover, the average realized LNG price of $10.36 per MMBtu increased when compared to $7.52 per MMBtu in the prior quarter. It rose more than two times from $4.27 per MMBtu the firm logged in the third quarter last year.

Santos said the higher average realized LNG price reflects the linkage of sales contracts to an improving lagged Japan Customs-cleared Crude (JCC) price and higher JKM spot prices.

The firm also reported a record quarterly free cash flow of $359 million, up 33 percent.

Chief executive Kevin Gallagher said Santos had delivered “another strong quarter” as the business benefited from higher commodity prices, including JKM pricing for 12 LNG cargoes sold during the quarter. Santos’ LNG projects shipped in total 69 cargoes in the third quarter.

“Our disciplined, low-cost operating model continues to drive strong performance with $931 million of free cash flow generated in the first nine months of 2021. At current commodity prices, Santos should generate close to $1.3 billion in free cash flow for the full year,” he said.

Papua New Guinea-focused Oil Search and Santos have recently entered into a definitive merger deal that would create an LNG player worth about A$21 billion ($15.5 billion).

“The proposed merger with Oil Search is on track for completion by year-end, subject to customary conditions including Oil Search shareholder approval,” Gallagher said.

Most Popular

Atlantic LNG shipping rates, European prices down

Atlantic LNG freight shipping rates and European prices decreased this week compared to the week before.

Glenfarne becomes majority owner of Alaska LNG

US energy firm Glenfarne has signed definitive agreements with state-owned Alaska Gasline Development Corporation to become the majority owner of the giant Alaska LNG export project.

Petronas to supply LNG to PetroVietnam Gas

Malaysian energy giant Petronas will supply liquefied natural gas (LNG) to PetroVietnam Gas, a unit of state-owned PetroVietnam, next month. The two firms will also look into the possibility of signing long-term LNG contracts.

More News Like This

Santos says Barossa project 91 percent complete

The Barossa gas project, which will supply feed gas to the Santos-operated Darwin LNG plant, is 91 percent complete and remains on target for first production in the third quarter of 2025, Santos said on Wednesday.

TotalEnergies CEO says partners working hard on Papua LNG

TotalEnergies has a 37.55 percent operating stake in the Papua LNG project, ExxonMobil has 37.04 percent, Santos owns a...

Santos, Tamboran to study options for second Darwin LNG train

The partners jointly own the EP 161 acreage in the Beetaloo basin with Santos holding a 75 percent operating...

Santos: Barossa project 88.3 percent complete

Santos announced this in its fourth-quarter report on Thursday. The project was 83.5 percent complete as of October 31, 2024. In...