Santos posts 12% slide in quarterly sales as output lowers
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The news: Oil giant Santos has reported a 12% drop in sales for the third quarter, as production lowered during the period.
The numbers: Santos recorded Q3 sales of $1.13 billion, down from $1.19 billion in the previous quarter.
Production totalled 21.3 million barrels of oil equivalent for the third quarter, down 4% quarter over quarter.
The context: Santos said sales volumes were impacted by maintenance activities in Western Australia, lower crude oil volumes due to the timing of liftings, and lower third-party gas purchases. Despite the quarterly decline, year-to-date sales volumes were slightly higher than the prior year.
Sales revenue was lower than the prior quarter due to lower crude sales and lower realised prices for oil-linked LNG sales contracts, the company said.
What they said: "With around $1.4 billion of free cash flow from operations generated year-to-date, Santos is well positioned to deliver strong shareholder returns with imminent production growth as we bring Barossa LNG online and move closer to the start-up of Pikka," said Santos' managing director and CEO Kevin Gallagher.
The source: ASX
