Australian gas producer and GLNG operator, Santos reported record annual production, as well as record quarterly production in the quarter ending December 31, 2020.
Santos reported annual production of 89 mmboe, 18 per cent above the prior year and at the top end of the upgraded guidance provided in December.
The quarterly production hit 25.4 mmboe, 1 per cent above the prior quarter.
Fourth-quarter production was higher than the prior quarter primarily due to strong Bayu-Undan gas production to Darwin LNG and higher domestic gas production in Western Australia, Santos said in its report.
Quarterly sales volumes hit a record of 31.1 mmboe, 7 per cent above the sales volumes recorded in the previous quarter. Fourth-quarter sales revenues reached $922 million, up 16 per cent on the previous quarter.
Annual sales volumes reached a record level of 107.1 mmboe, generating annual sales revenue of $3.4 billion.
The company noted the results were pushed by stronger LNG sales volumes and prices.
LNG sales volumes and revenue rising
During the fourth quarter of 2020, Santos reported LNG sales volumes of 1.38 mt, up 23 per cent from the previous quarter.
LNG sales revenues were at $388 million, up 25 per cent from the previous quarter.
Overall, the fourth-quarter sales revenues were higher than the prior quarter reflecting significantly increased LNG sales volumes and prices, and timing of liquids liftings.
The average realized LNG price was higher than the prior quarter reflecting the linkage of sales contracts to a lagged Japan Customs cleared Crude (JCC) price. Three-month lagged JCC averaged $41/bbl in the fourth quarter compared to $31/bbl in the third quarter.
Santos’ LNG projects shipped 73 cargoes in the fourth quarter, of which six were spot cargoes.
JKM spot prices have increased significantly in early 2021 reflecting strong market demand due to colder weather in North Asia and temporary supply reductions. Santos’ LNG projects currently have 10 spot cargoes scheduled in the first quarter of 2021.