Santos shares edge higher after sales meets analysts' estimates
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More news: Santos shares were up 0.3% to $8.04 by 2:41pm AEST, while the broader ASX 200 was down 0.26%, after it reported steady sales and production for the June quarter.
RBC Capital Markets analyst Gordon Ramsay was 'neutral' on the results and said Santos' sales volume and revenue fell "exactly in line" with RBC estimates for the quarter.
Production volume was also spot on with predictions, and major projects including its Barossa and Pikka projects were on time for development and expected to deliver gas in FY25 and oil in FY26, respectively.
Kumul Petroleum has yet to put in full payment to acquire Santos's 2.6% stake in PNG LNG, leading to Santos instituting a longer payment plan financed by PNG LNG proceeds.
Santos sales, production steady in June quarter
The news: Oil and gas producer Santos has reported steady sales and production for the June quarter as assets returned to service following weather outages and planned maintenance activities.
The numbers: Sales revenue for the three months to June 2024 dropped 6% from the prior quarter to $1.31 billion mainly due to lower liquefied natural gas and crude oil volumes, offset by higher realised prices for domestic gas, crude oil, and liquid petroleum gas.
Sales volumes were steady at 23.2 million barrels of oil equivalent (mboe), while production was 2% higher at 22.2 mboe.
The context: The company said production volumes in Western Australia bounced back 6% compared to the first quarter, following recovery from weather events and planned maintenance.
Santos CEO Kevin Gallagher said the performance reflected a focus on operational excellence and project execution. He said the company was now in line of sight for major projects progressively coming online, putting it in a strong position “to deliver sustainable, long-term shareholder returns".
The sources: ASX announcement, RBC research
