Santos shares rise on in-line Q1 result
Make us a preferred source
Make us a preferred source on Google
More news: Santos shares lifted on the ASX after the oil and gas giant reported lower sales and production volumes for the September quarter as it completed planned maintenance activities.
Santos shares were up 0.7% to $7.01 by 1:20pm AEDT.
Jarden analysts said the result was in-line with expectations, but noted that a 20% increase to capital expenditure at Santos' Pikka oil project in Alaska was more than anticipated. They also noted that company's Barossa gas project "pleasingly" remains on time and budget after its most recent cost and schedule review.
"Overall, we expect a small negative reaction to the quarterly update," the analysts said.
The Adelaide-based company, along with its join venture partner Beach Energy, also announced the commissioning and ramp-up of a controversial carbon capture and storage project at Moomba in South Australia this morning.
Santos sales, production dips in September quarter
The news: Oil and gas producer Santos has reported lower sales and production volumes for the September quarter as it completed planned maintenance activities.
The numbers: Sales revenue for the three months to September dropped 3% from the prior quarter to $1.27 billion mainly due to lower liquefied natural gas and crude oil volumes, offset by higher realised prices for domestic gas, and LNG.
Sales volumes were down 6% on quarter to 21.7 million barrels of oil equivalent, while production was down 3% to 21.6 million barrels of oil equivalent (Mmboe).
The context: The company said production volumes were lower than the prior quarter primarily due to planned maintenance activities relating to the amine trains on Varanus Island in Western Australia.
Average realised LNG prices were higher, on the back of oil-linked and Japan-Korea-benchmarked sales contracts and the impact of higher spot market prices.
Chief executive Kevin Gallagher said the company’s focus for the remainder of 2024 is on project execution and cost discipline.
The sources: ASX announcement, Jarden research
