Santos profits fall 32% on lower production

The news: Santos has posted a 32% profit drop, lower earnings and reduced production for the half-year.

The numbers: Santos reported a statutory net profit after tax of USD790 million ($1.23 billion), down 32% from a year ago. EBITDA was down 23% to $2.1 billion. The oil and gas player declared a 8.7 US cent interim dividend, up 14% from last year. Santos shares were down about 1% to $7.72 at 11:25am AEST.

The context: Production fell 13% to 45 million barrels of oil, which was fetching less per barrel, as prices normalised after hitting nearly 14-year highs in the wake of Russia's invasion of Ukraine. Santos has been facing approval delays in its Timor Sea Barossa gas project, and is working to expand its energy solutions business, which will focus on decarbonisation and cleaner fuels.

What they said: "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,” Santos chief executive Kevin Gallagher said in a statement.