Santos delivers $1.35b sales revenue in June quarter
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The news: Santos has delivered $1.35 billion in sales revenue, 6% higher on the preceding quarter as liquefied natural gas prices lifted and the group’s Barossa and Pikka projects continue ramp-up.
The numbers: Free cashflow from operations came in at about $378 million for the first half, which was impacted by commissioning costs for Barossa and Pikka, and timing of cargo movements across the half-year reporting date.
Barossa and Pikka recorded a combined free cashflow from operations loss of $151 million.
Santos also flagged that its capital expenditure was 20% below first-half of 2025, as Barossa and Pikka projects moved from development to commissioning and operations.
Realised liquefied natural gas price was $11.21 per million British thermal units during the quarter, up 4.9% on the prior quarter.
The context: Santos said the Barossa project is producing at 97% of planned rates with a current cadence of cargoes at about every eight days. But the first half of the June quarter was impacted by ramp-up challenges and receipts from after the end of the period.
What they said: “Production increased towards the end of the second quarter as Barossa ramped up and Pikka came online, with Barossa now producing at 97% of planned rates,” Santos managing director and CEO Kevin Gallagher said.
“The challenges encountered during commissioning activities have essentially delayed our transition to a higher production, higher cashflow generating portfolio, until the second half of the year.”
The source: ASX
