Australian independent LNG producer Santos reported a 10.4 percent drop in quarterly sales revenue but its production logged a record high.
The Adelaide-based firm posted fourth-quarter revenue of $922 million, compared to $1.03 billion last year and $797 million in the previous quarter.
On the other side, production increased 35.8 percent to a record 25.4 million barrels of oil equivalent.
Realised LNG prices dropped substantially from $9.07 per mmBtu in the fourth quarter of 2019 to $5.34 per mmBtu last year but it increased compared to the previous quarter.
Santos said the price was higher than the prior quarter due to the linkage of sales contracts to a lagged Japan Customs-cleared Crude (JCC) price.
Three-month lagged JCC averaged $41/bbl in the fourth quarter compared to $31/bbl in the third quarter.
In addition, JKM spot prices have increased significantly in early 2021 reflecting strong market demand due to colder weather in North Asia and temporary supply reductions.
According to Santos, its LNG projects currently have 10 spot cargoes scheduled in the first quarter of this year.
Furthermore, Santos’ LNG projects shipped 63 cargoes in the foorth quarter, of which six were spot cargoes.
“2020 saw us ride through the bottom of the cycle while still generating free cash flow and deliver a record 4.3 million tonnes of Santos-equity LNG sales,” Santos chief Kevin Gallagher said.
“We remain focused on controlling our costs and living by our disciplined operating model so we are set up to sustain our base business and remain resilient through the cycle even as we see the welcomed strengthening in prices over the past months,” he said.