Australian independent LNG producer Santos reported a 9 percent rise in quarterly revenue due to higher commodity prices.
Santos said in a statement first-quarter revenue increased to $964 million despite the contractual 3-month lag in oil-linked LNG prices and lower overall sales volumes.
The average realised LNG price of $6.12 per MMBtu increased when compared to $5.34 per MMBtu in the prior quarter, but it dropped from $8.88 per MMBtu the firm logged in the first quarter last year.
Santos said it produced 24.8 million barrels of oil equivalent (mmboe) during the January-March period, a rise when compared from 17.9 mmboe last year.
Chief executive Kevin Gallagher said Santos had delivered “another strong quarter” of production and sales volumes, and free cash flow, as the business benefited from higher commodity prices and a low free cash flow breakeven oil price.
“This was despite the 3-month lag in oil-linked LNG prices, which should see stronger prices in the second quarter,” he said.
To remind, Santos has recently taken a final investment decision for its $3.6 billion Barossa project to secure feed gas for the Darwin LNG plant in the Northern Territory.
Santos claims the project represents the biggest investment in Australia’s oil and gas sector since 2012.