Santos’ LNG figures boost third-quarter revenue

Australian LNG player Santos, the operator of the GLNG project, reported a 6 percent increase in production for the third quarter of 2018. 

Production reached 15 mmboe, compared to 14.2 mmboe reported in the second quarter of the year.

Sales revenue jumped up 10 percent to $973 million, including record quarterly LNG revenues of $405 million, Santos said in its report.

Third quarter sales volumes were higher than the prior quarter primarily due to a full quarter of production from PNG LNG following the impact of the earthquake in the first half and the planned one-month maintenance shutdown of the Bayu Undan/Darwin LNG facilities in May.

Sales revenues rise was also boosted by higher commodity prices.

This was partially offset by lower crude oil sales volumes due to the cessation of production from the Mutineer Exeter/Fletcher Finucane asset in Western Australia in the second quarter and the completion of the sale of the non-core Asian assets on September 6, 2018.

Santos further noted that looking forward, it has narrowed its 2018 sales volumes guidance by lifting the lower end of both ranges, reflecting strong performance by the company’s core assets and despite the sale of the Asian assets completed in early September.

Under the updated guidance, Santos expects sales volumes to be between 74-76 mmboe and the production volume guidance to be between 56-58 mmboe.

Capital expenditure guidance has been lowered to reflect current internal forecasts and timing of expenditures. There is no change to well guidance for the Cooper Basin and GLNG for 2018, which is maintained at 85-90 and around 300 wells, respectively.