Santos reports lower profit in H1

Australian LNG player Santos reported a 37 percent drop in its first-half profit due to lower oil and gas prices.

Underlying profit dropped to $801 million in the January-June period of this year from $1.27 billion in the same period in 2022, Santos said on Wednesday.

Santos reported record profit in 2022 due to high liquefied natural gas prices and increased PNG LNG position after the merger with Oil Search.

In July, Santos said its sales revenue dropped by 18 percent to $1.33 billion in the second quarter due to lower LNG sales volumes, and lower commodity prices for all products.

The independent LNG producer said on Wednesday that its production of 45 million barrels of oil equivalent in the first half also fell 13 percent from the same period in 2022.

Also, the company’s statutory net profit after tax of $790 million fell 32 percent year-on-year.

The company’s board has resolved to pay an interim dividend of 8.7 cents per share unfranked ($283 million), 14 percent higher than the corresponding prior period interim cash dividend.

Managing director and CEO Kevin Gallagher said Santos has delivered “strong” free cash flow of $1.1 billion and underlying earnings in the 2023 first half, despite an “ever-changing macro environment.”

He said the company remains focused on executing its strategy to “backfill and sustain our existing infrastructure, decarbonize, and develop our Santos Energy Solutions division.”

“Our goal is to strike the right balance between disciplined and phased major project spend, returns to shareholders, and investment in new energy solutions to meet customer demand,” Gallagher said.

Most Popular

McDermott bags Monkey Island LNG gig

Houston-based McDermott has secured a contract from Monkey Island LNG for its planned natural gas liquefaction facility in Cameron Parish, Louisiana.

NextDecade takes FID on fourth Rio Grande LNG train

US LNG firm NextDecade has made a final investment decision on the fourth train at its Rio Grande LNG facility in Texas.

Equinor eyes LNG carrier order

Norwegian energy firm Equinor is interested in booking liquefied natural gas (LNG) carriers at yards in South Korea and China, according to shipbuilding sources.

More News Like This

Santos CEO expects Papua LNG FID in early 2026

France's TotalEnergies and its partners plan to take a final investment decision on the Papua LNG export project in Papua New Guinea in the first quarter of 2026, according to Santos CEO Kevin Gallagher.

Santos further extends exclusivity period for Adnoc takeover

Australian LNG player Santos has further extended the exclusivity period for its proposed $18.7 billion takeover by a consortium led by Adnoc's investment unit, XRG.

Santos says Adnoc takeover deal delayed

Australia LNG player Santos said on Tuesday that a consortium led by Adnoc's investment unit, XRG, would not be able to finalize the previously announced $18.7 billion takeover bid for another four weeks.

Santos wins GLNG court battle against Fluor

Australian LNG player Santos has secured a court battle over Gladstone LNG project construction work that will see a unit of Fluor paying out more than A$692 million ($451.5 million). Santos also announced that it has granted an extension to the XRG consortium to enable the consortium to finalize due diligence and progress a scheme implementation agreement.