Steady December quarter helps Santos hit FY guidance
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The news: Oil and gas producer Santos has reported a slight drop in production but lifted sales volumes during the December quarter, helping it achieve full-year guidance.
The numbers: Sales revenue for the December quarter was up 10% from the prior quarter to USD1.4 billion ($2.23 billion), but full-year revenue was down 9% from a year ago to USD5.38 billion.
Sales volumes were up 9% on quarter to 23.6 million barrels of oil equivalent, while production was down 1% to 21.5 mboe. Both numbers were down on an annual basis, but within the company’s guidance range.
Santos shares are up 1.3% to $7.22 in early trading on the ASX.
The context: Santos said fourth quarter production was affected by lower domestic gas and crude oil volumes in Western Australia, but sales volumes were higher due to the the timing of cargoes from Varanus Island and Pyrenees.
Meanwhile, the company’s Barossa Gas project is 88.3% complete and on track for first production in the third quarter of 2025, and within current cost guidance.
Santos has outlined higher production for 2025, in the 90 to 97 mboe range, while sales are expected to be in the range of 92 to 99 mboe.
The source: ASX announcement
